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Wouldn't it be better for the Bahamas to collect $12,000 than nothing? Why not give second homeowners like myself who already pay property tax and tax on everything else we consume here some consideration in the purchase of a new boat and collect some tax revenue rather than collect nothing? Hopefully the government will address this and not continue to be "penny-wise and pound-foolish"!

Taxes are Losing The Bahamas Money

Letters to the Editor

Dear Editor,

I read with interest your recent article about the modification of certain taxes.

I am considering the purchase of a new boat. I have to decide whether to pay Florida State sales tax or register the boat in The Bahamas. Florida sales tax for the county I reside in is 6%. I just spoke to Bahamas Customs and was informed that currently I would have to pay 10% duty plus 7.5% VAT plus $10.00 stamp tax.

The Bahamas is shooting themselves in the foot with all that tax.

I would certainly pay the VAT which is slightly more than registering the boat in the US. However the combined Bahamas tax is 17.5%. On a $200,000 boat that equates to a $35,000 tax in the Bahamas or a $12,000 tax in the US.

Wouldn’t it be better for the Bahamas to collect $12,000 than nothing?  Why not give second homeowners like myself who already pay property tax and tax on everything else we consume here some consideration in the purchase of a new boat and collect some tax revenue rather than collect nothing?  Hopefully the government will address this and not continue to be “penny-wise and pound-foolish”!

Don Hunt

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