Credit Unions Resist VAT Exemption End
Bahamian credit unions are pushing back against planned legal reforms that will eliminate their current VAT exemption.
According to Central Bank Governor John Rolle, the move is intended to bring fairness to the system, as all businesses are exempt from taxation on their profits.
“In the case of the Value Added Tax, it’s really dealing with the instances in which they are encountering that in their inputs to the operation, and making certain that there’s clarity in terms of how that is administered,”
said Mr Rolle. He noted that credit unions will still be exempt from certain government taxes, but VAT will apply when they procure goods and services from suppliers.
Author's summary: Credit unions oppose VAT exemption end.