Vat in the Bahamas
According to Businessdictionary.com, value added tax (VAT) is define as Indirect tax on the domestic consumption of goods and services, except those that are zero-rated (such as food and essential drugs) or are otherwise exempt (such as exports). It is levied at each stage in the chain of production and distribution from raw materials to the final sale based on the value (price) added at each stage. It is not a cost to the producer or the distribution chain members, and whereas its full brunt is borne by the end consumer, it avoids the double taxation (tax on tax) of a direct sales tax. Introduced by the European Economic Community (now the European Union) in the 1970s.
I know in the Bahamas most of our goods are imported. I do not understand why a gallon of American milk costs roughly $2 in the U.S.A., and when the milk is imported to Nassau we pay almost eight dollars. Why is the markup so high? It seems that The Bahamas is already being tax on goods. If VAT is implemented at 15% instead of paying only $8 on a gallon of milk, you would pay $9.20. If you spend $9.20 on milk in the U.S.A. you would have four gallons instead of one. The government needs to evaluate why goods are so heavily marked up. I know the goods have to be purchase then shipped, but retailers are purchasing their items wholesale by the bulk. When they purchase wholesale they don't have to pay the retail price they are charge by a wholesale price, which is less than the retail price.
Individuals will not want to go out as much to the movies, dinner or other leisure activities if Vat was made effective. Persons would have to learn to cut back on spending frivolously and only on a must need bases. Businesses in the community will be effected tremendously if consumers who are consumers, who are one of the major stakeholders spends less at their business. The community would see a decline in revenue eventually. Families will have to create a budget on what is important and
I know in the Bahamas most of our goods are imported. I do not understand why a gallon of American milk costs roughly $2 in the U.S.A., and when the milk is imported to Nassau we pay almost eight dollars. Why is the markup so high? It seems that The Bahamas is already being tax on goods. If VAT is implemented at 15% instead of paying only $8 on a gallon of milk, you would pay $9.20. If you spend $9.20 on milk in the U.S.A. you would have four gallons instead of one. The government needs to evaluate why goods are so heavily marked up. I know the goods have to be purchase then shipped, but retailers are purchasing their items wholesale by the bulk. When they purchase wholesale they don't have to pay the retail price they are charge by a wholesale price, which is less than the retail price.
Individuals will not want to go out as much to the movies, dinner or other leisure activities if Vat was made effective. Persons would have to learn to cut back on spending frivolously and only on a must need bases. Businesses in the community will be effected tremendously if consumers who are consumers, who are one of the major stakeholders spends less at their business. The community would see a decline in revenue eventually. Families will have to create a budget on what is important and