Categorized | National News

DPM Giving Some Businesses Grace Period

The government is giving some business owners a break in the wake of the newly implemented 60 per cent increase in Value Added Tax.

Finance Minister Peter Turnquest told reporters outside of Cabinet this past Wednesday that the reason behind this was that some industries are simply more complicated than others.

He said, “So far the experience seems to be going smoothly. Some hiccups as there would be with any change , but by large we’re fairly pleased.” 

He added, “There ate others that have long-term implications and those we have given consideration  to the tourism sector, insurance sector, and contractors who have longer term contracts.”

“We’re making some adjustments to accommodate this particular issues, but so far so good.”, he said.

As for the transition, the Deputy Prime Minister said that he learned about some confusion  with the Customs Department as it relates to tariffs.

However, he assured that the government will iron out the kinks to ensure that everyone is on the same page within the next day or two. 

Mr. Turnquest also spoke on the intended deadlines for the granted grace period.

He said, “For breadbasket items they’ll come in on August 1st and the hotel industry September  30th.”

He added, “ Those that have long-term contacts while the rate changes on July 1st, we are respecting the contractual relationship. If they were booked prior to Just 1 we’re allowing them to carry through with those contracts.”

The Finance Minister also noted that there has been one reported incident of price gouging, however he says that the information on the receipt was incorrect.

Written by Jones Bahamas

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