Hurricane supply VAT holiday to begin next week

The Ministry of Finance announced yesterday that a value-added tax (VAT) holiday on hurricane supplies would begin on July 9.

Prime Minister Dr. Hubert Minnis announced last month that the VAT holiday would come into effect in July to assist Bahamians shopping for critical hurricane supplies and equipment.

In a social media post, the ministry announced the VAT holiday would continue 

until July 31, allowing Bahamians to purchase hurricane supplies without paying 12 percent VAT.

The tax break would only apply to hurricane supplies purchased in the country, however.

The items that would carry the zero VAT rate for the three-week period include flashlights, drop cords, uninterrupted power supply (UPS) systems, battery-operated fans, batteries, tarps, prefilled sand bags, water containers and cans, gas and diesel, storage containers, first-aid kits, plastic sheeting, oil lamps, candles and portable radios.

Additionally, oil lanterns and the bottles used for them, as well as duct and masking tape, empty five-gallon buckets, raincoats and water bots, life jackets, hurricane lanterns, sternos, butane portable stoves, manual can openers, ply wood, coolers, insect repellant, storm shutters and residential generators will not carry VAT charges during the holiday period.

The announcement comes as weather forecasters warn Bahamians to pay close attention to Tropical Storm Elsa, which has developed in the Atlantic.

While the projected path of the fast-moving storm carries it over Jamaica and portions of eastern Cuba, forecasters said Bahamians should monitor the cyclone because it is too soon to determine if it would impact the southern Bahamas.

This is the first time the government has implemented a tax holiday on hurricane supplies.

Speaking about the initiative in the House of Assembly last month, Minnis said, “My message to everyone is that they should use the month of July to get their homes and businesses ready for the hurricane season. Take advantage of the savings and avoid the rush.”

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source https://thenassauguardian.com/hurricane-supply-vat-holiday-to-begin-next-week/