Higher Tax Rate to Affect Visitors to Nassau, Castaway Cay

Last month, government officials in the Bahamas announced an increase to the VAT (value added tax) that will make shopping for souvenirs in Nassau a little less affordable. Effective July 1st, the VAT for goods and services in the Bahamas will increase from 7.5% to 12%.

While the change is official next week, retailers were recently given an extension until August 31st to make any price changes, after larger retailers complained that “fine details” of the new rules were released just a week before the change was to go into effect.

The higher VAT will affect Disney Cruise Line passengers who will see higher prices at retailers in Nassau and shops on Castaway Cay, plus likely increases in excursion prices in both ports.

Source: Tribune 242