The Bahamas to modernize tax code

The new government (the Perry Christie administration) in the Bahamas is planning to modernize the tax code to generate new revenue.

The Progressive Liberal Party (PLP) says it will consider introducing a value-added tax or levying fees on certain services, but specifics are few. The party returned to power earlier this month after dominating elections.

State Minister of Finance Michael Halkitis said Thursdays a council of economic advisors will develop a tax reform plan. He says the current system “does not provide the amount of revenue for the government to fulfill its mandate in providing services for the people of the Bahamas.”

The debt burden in the Bahamas – which is a Caribbean tax haven has risen to 53 percent of the gross domestic product, up from 31 percent in 2007.

National debt is approaching US$5 billion.

Copyright 2012 The Associated Press.