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”!