The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Minister of Health yesterday admitted said the promised revision to the country's 45 year-old breadbasket foods line-up has been "delayed but not derailed".

Dr Duane Sands told Tribune Business the revisions will not be in place in when the breadbasket value-added tax (VAT) exemptions take effect on August 1, as a public consultation tour of all Bahamian islands had been delayed.

"The VAT exemption on breadbasket items will come into effect August 1," he said. "What we had promised was a revision to include healthy foods. We already took sugar off that list. We intend to take off a few others and add a few others. We made a commitment to complete the conversation before we make those changes. It hasn't been derailed; it's just been delayed. We want to have consultation before we make the adjustments."

Dr Sands added that changing the breadbasket line-up only requires that the changes be gazetted, with an Act of Parliament unnecessary. Beginning on August 1, VAT will not be applied to butter, cooking oil, mayonnaise, grits, cheese, corned beef, evaporated milk, margarine, rice, flour, bread, tomato paste, baby cereal, baby formula, soup, broths, baby food, powdered detergents, condensed milk, soaps, fresh milk and mustard.

The items likely to be removed from the breadbasket list are margarine, mayonnaise, corned beef, canned meats, canned soups, broths, condensed milk and sugar. Those likely to be included are beans and peas, raw almonds, raw cashews, fresh oranges, fresh apples, root crops and oatmeal, as well as tuna, sardine and mackerel canned in water.

Some of the items that will remain on the list will be subject to greater specification, allowing affordable purchases of only certain kinds of staple products. These will likely include no fat, low fat and two per cent fat evaporated milk options, as well as organic and non-organic fresh eggs. The list will likely include trans fat free, low fat, olive oil, unsalted and vegan butters, and one percent, two percent soy and almond fresh milk.