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News report: VAT changes can increase costs for businesses, says BCCEC CEO

  • BCCEC
  • 10 minutes ago
  • 2 min read

Published by Chester Robards, The Nassau Guardian, February 6, 2026

Changes in the value-added tax (VAT) rate can frustrate businesses and increase their costs, Chief Executive Officer of the Bahamas Chamber of Commerce and Employers’ Confederation Dr. Leo Rolle said on Wednesday night.


Rolle made the comments during the Organization for Responsible Governance’s (ORG) “Impacts of VAT” webinar, hosted by Nassau Guardian reporter Rachel Knowles-Scott.


Rolle said governments’ random movement of the VAT rate on certain items causes business disruption and uncertainty. He stressed that uncertainty is not good for businesses or markets.


“Any disruption, whether it be to the bottom line or to a business itself, causes uncertainty. And uncertainty begets volatility. Volatility causes the market to shift,” said Rolle.


“If I’m a business owner, and I’m making the same $10 I was making last year, but there are so many detractors now pulling from that $10... only one of three things can happen. I have to offset the challenges that my business is having. Because now you’re pulling from the same $10 that I’m making. So I can downsize, and try to reduce spending in some areas to make sure that there’s balance, or it may very well trigger inflation, which is a systematic increase of the cost of goods and services. What that means is that I’m going to increase the cost of my goods and services to offset all of these detractors that are pulling from my bottom line.”


Rolle said another thing that can happen is that, as businesses try to contend with the costs associated with constant VAT changes, they could possibly go out of business. He said another consequence of the strains of regular VAT changes is that businesses may enter the informal economy, where they end up paying no taxes at all.


“So, I am no longer on your radar because now I’m completely removed. I don’t pay taxes. I don’t, perhaps, have a business license,” said Rolle.


“I probably operate from the back of my vehicle. And, so, those are aspects that you find.”


The government is preparing to remove VAT from unprepared food items on April 1.


Prime Minister Philip Davis announced in January during a national address.


Last year, the government cut VAT on food from ten to five percent.






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