The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Businesses participating in the Government’s duty-free shopping scheme are generating close to $10 million a month in tax-exempt sales to tourists, the Financial Secretary said yesterday.

John Rolle, addressing a Bahamas Institute of Chartered Accountants (BICA) seminar, said more than 100 stores are now involved with the duty-free scheme.

“What we have seen is the 100-plus stores that are now involved, they are generating close to $10 million a month in terms of these tax free sales to tourists,” he said.

“August and September are not really good months for tourism, so I can’t use that to generalise on a yearly basis, but you can see that it gives us a quick extrapolation. We’re looking at least anticipating $100 million a year in terms of duty-free or tax-free shop going on.”

Mr Rolle added: This does not include alcohol, tobacco and some of the other food stuffs. We expect that if businesses will continue to take advantage of this, they are going to be representing a large footprint.

“Those who are participating, they are seeing in terms of transactions about $400 on average from persons who are taking advantage of the VAT off or duty free shopping.”

Global Blue, a Swiss company which is one of the world’s biggest tax-free shopping networks, with 270,000 affiliated merchants in 43 countries, is managing the scheme.

Mr Rolle said jewellery sales account for the largest segment under the VAT-free shopping scheme. “The area where most of the shopping is taking place is on jewellery. Americans represent the largest share of tourists making these purchases followed by the Canadians,” he added.

The Government implemented the VAT-free scheme in August with the aim of ensuring that the Bahamas remains an attractive and competitive destination for tourist shopping.

The scheme is available for retailers who have obtained permission from the VAT Comptroller to sell qualifying goods VAT Free or on a ‘VAT Off’ basis.

Tourists making VAT-free purchases must present to the approved retailer travel or other documentation to show residency status and proof of pending departure from the Bahamas.