The Tribune

By NEIL HARTNELL

TRIBUNE Business Editor

nhartnell@tribunemedia.net

THE OPPOSITION’S finance spokesman last night urged the Government to put its $39m Budget surplus “back in the hands of the Bahamian people” by eliminating all VAT and Customs duty on imported toys ahead of the Christmas holidays.

Kwasi Thompson, the east Grand Bahama MP, told Tribune Business that such a measure - which he likened to the tax relief provided for summer Back-to-School shopping - would provide much-needed relief for struggling families ahead of the festive retail season by eliminating 20 percent duty, and 10 percent VAT, on all toy purchases.

Affirming that such tax relief would be confined to the two-month period of November and December, so as to minimise any revenue and fiscal fall-out for the Public Treasury, he argued that measures to combat the ever-escalating cost of living in The Bahamas must be the Davis administration’s top priority.

“What I’m specifically asking for, and it affects all families across The Bahamas, is a Christmas toy relief programme,” Mr Thompson told this newspaper. “Right now, toys are 20 percent duty and 10 percent VAT. The Government can remove VAT and duty off toys, and assist families greatly.

“All families are going to gift children with toys. This targeted relief for a temporary period of time will help families. This will be of tremendous benefit to families across The Bahamas for the Government to do this.” Mr Thompson said such a move would reduce costs, and increase the affordability of toys as Christmas presents, for Bahamians struggling to make ends meet.

“The Government has been touting their surplus, what they call the financial strength of The Bahamas,” he added. “Show the financial strength of The Bahamas by putting this back into the hands of the people of The Bahamas. I specifically want to emphasise it’s the months of November and December.

“For a temporary period of time, we spend thousands of dollars to assist every child across The Bahamas, every parent and grand-parent. To assist them with this relief will go an awful long way. I seriously believe the Government should consider tax relief for Christmas.

“We’ve done it with Back-to-School, we’ve done it with VAT relief on food. There’s no reason why we cannot take Customs duty off Christmas toys and VAT off Christmas toys. It will go a long way to assist and help Bahamian families. It is just one of a number of initiatives the Government should be taking.”

Mr Thompson reiterated his belief that relieving cost of living pressures should be the Government’s “top priority”. He added: “We understand the Government cannot control the international inflation numbers, but the Government can put in reasonable policy measures that can mitigate or assist with the high cost of living for Bahamian families.

“We have been advocating for the Government to cap VAT on fuel. That would bring some relief and assistance. The Government should be looking at increasing specific assistance for seniors and can look at targeted assistance for small businesses - any assistance when it comes to fuel, assisting them in purchasing items, assisting them with their expenses, assisting them with access to capital.”

Mr Thompson said the latest inflation figures released by the Bahamas National Statistical Institute (BNSI) for July 2026 “reveal troubling increases in the cost of living”.

He added: “While overall inflation stood at 3.6 percent in July 2026, the figures show much sharper annual increases in essential categories. Diesel rose by 33.4 percent, gasoline by 21.4 percent, restaurants and hotels by 15.7 percent, and transportation by 12.9 percent.

“These are significant increases for Bahamian families, particularly when wages and pensions are not keeping pace. A family previously spending $200 on gasoline could now be spending approximately $243 for the same quantity.

“The latest US inflation figures, released yesterday, show a further 0.4 percent increase in consumer prices in October. Given our dependence on imports, continued international price pressures could place additional burdens on Bahamian households.”

Mr Thompson urged the Government to expand VAT exemptions on essential groceries, offer electricity assistance for seniors and vulnerable households, ensure more affordable prescription medication, and provide targeted support for workers, farmers, fishermen and small businesses.

As for toy tax relief, the east Grand Bahama MP reiterated: “Removing the 20 percent Customs duty applicable to most toys and the 10 percent VAT for this period would help parents and grandparents stretch their Christmas budgets further. The relief should apply to toys purchased locally as well as those imported directly by families.

“Christmas should be a time of joy for our children, not additional financial hardship for parents already struggling to make ends meet. The Government cannot control international inflation, but it can take meaningful steps to reduce the burden on Bahamian families. The Bahamian people do not simply want explanations for rising prices. They want practical relief, and they deserve action now.”