Bahamas
Prime Minister Philip Davis has announced that the value-added tax rate on all food would be reduced from 10 % to 5 %.
During a recent address at the University of the Bahamas, he said, “We know that high prices exert terrible pressure on families.”
“Reducing VAT by 50 % will make a difference for those with the tightest disposable income.”
He said the VAT cut would apply to all food sold in food stores, including fresh produce, frozen items, baby food, and snacks, but prepared foods in deli sections would not be included.
The reduction also extends to the importation of these goods.
The VAT announcement represents a shift for the Progressive Liberal Party (PLP), which has traditionally supported a low-rate, broad-based Value Added Tax (VAT) system with minimal exemptions. This model has been praised for its efficiency and simplicity.
Davis said the initiative comes as part of a broader government effort to mitigate the effects of inflation, which has remained high despite slowing global trends.
He acknowledged that factors like the war in Ukraine and disruptions in global supply chains had worsened conditions but emphasized his administration’s commitment to alleviating local hardships.
He stressed that the reduction would not impact the government’s fiscal targets. He added that the government is also preparing legislation prohibiting anti-competitive practices, which he said would lead to “lower prices, better products, and more choices.”
Bermuda
Opposition political parties have welcomed the decision by Premier David Burt to call a general election on Feb. 18.
Governor Rena Lalgie has officially dissolved the legislature with advice from the Premier.
The ruling Progressive Labour Party (PLP) has won the last two general elections. In announcing the election date ten months ahead of the constitutional deadline, Burt said, “Bermuda stands on the cusp of a pivotal time, and the 2025 budget for the coming fiscal year, which is usually presented in February, would need to reflect the collective wishes of the electorate.“
Burt, who has signaled this will be his final general election following a change in party leadership, is promising to continue economic development plans and policies to ease the burden on the most vulnerable should his party be re-elected.
The leader of the main opposition, One Bermuda Alliance (OBA), Jarion Richardson, while welcoming the election date, said, “The timing is actually quite revealing because it’s just before the budget, and that is not coincidental, especially given that much of the promises that the Premier had made towards the end of last year.”
Leader of the Free Democratic Movement (FIMO) Marc Bean also welcomed the election date and said, “This marks a pivotal moment in Bermuda’s democratic process, and the FDM is fully prepared to engage with the electorate on the issues that matter most to our people.“
Haiti
More than 5,600 people were reported killed in Haiti last year as a UN-backed mission led by Kenya struggles to contain the escalating and rampant gang violence that continues to affect the country.
The number of killings increased by more than 20% last year as compared to the previous year, according to the UN Human Rights Office. In addition to the killings, more than 2,200 people were reported injured and nearly 1,500 kidnapped, it said.
“These figures alone cannot capture the absolute horrors being perpetrated in Haiti, but they show the unremitting violence to which people are being subjected,“ Volker Türk, UN High Commissioner for Human Rights.
Among the victims were two journalists and a police officer who were killed when gunmen opened fire on a crowd that gathered on Christmas Eve for the reopening of Haiti’s most prominent public hospital, which gangs forced closed earlier this year.
Other victims include more than 200 people killed in early December after a gang leader sought to avenge his son’s death following Vodou rituals, according to the UN. It was one of the biggest massacres reported in Port-au-Prince in recent history.
Victims also include 315 suspected gang members or people associated with them and more than 280 people killed by police in alleged summary executions, the UN said.
“It has long been clear that impunity for human rights violations and abuses, as well as corruption, remain prevalent in Haiti,“ Türk said.
He called for more logistical and financial support for the UN-backed mission.
Jamaica
Jamaica registered 1,139 murders last year, and Police Commissioner Dr. Kevin Blake warned criminals that they will not win in the pursuit of criminal activities.
Figures released by the Ministry of National Security show that Jamaica recorded a reduction of 265 compared with the previous year when the country recorded 1,397.
“To the violent criminals who threaten the pace of our communities, hear me clearly. The JCF (Jamaica Constabulary Force) of 2025 is charged and ready. You will face a force that is highly motivated and driven by a relentless resolve to win, Blake said, noting that the police had been more motivated this year to go after criminals.
“If you choose to continue your path of destruction, you will find us standing firm against you with the full weight of the law behind us. Consider this your warning. We will not ease up until peace prevails.
“To the Jamaican people, I reaffirm our pledge that JCF will stand resolute in its mission to protect you and dismantle criminal organizations. So let us work together to make this vision a reality,“ said Blake.
The JCF also reported that shootings declined from 1,104 to 997, and there were 355 rapes as compared to 484 the previous year.
Robberies also declined, as were 629 robberies recorded compared to 794 the previous year.
St. Kitts and Nevis
Prime Minister Dr. Terrance Drew says that his administration has taken decisive action to cushion the impact of inflation on citizens. He adds that they introduced innovative measures designed to support households, increase disposable income, and provide essential relief.
“In the face of global inflation, no country is excluded,“ Prime Minister Drew said at the first Round Table this year, adding, “We have sought to bring forward policies to ease the difficulties and challenges faced by our people.“
“This includes increases in salaries, the minimum wage, and the minimum pension amount, as well as substantial subsidies for electricity, water, and social programs.”
He said the government had allocated EC$320 million (One EC dollar = US$0.37 cents) to essential subsidies and social programs, demonstrating its unwavering commitment to protecting the most vulnerable.
He said that as part of these measures, the Budget Boost Wallet (BBW) has been introduced, providing eligible individuals earning EC$5,000 or less per month with EC$250 per month for the first six months of 2025.
St. Vincent and the Grenadines
The St. Vincent and the Grenadines parliament recently approved the EC$1.85 billion (One EC dollar = US$0.37 cent) Estimates of Revenue and Expenditure for the 2025 fiscal year, but the Opposition Leader, Dr. Godwin, on Friday said the document contained so many errors that he wondered if it was intentional.
The fiscal package is a 15.6% increase over the approved budget 2024. Minister of Finance Camillo Gonsalves, who will present the budget statement, said the recurrent expenditure, inclusive of amortization and sinking fund contributions, is EC$1,150,713,466, and capital expenditure is EC$698,628,531.
The budget is to be financed from current revenue of EC$907,729,320 and capital receipts of EC$943,612,687. Gonsalves said, “This fairly strong anticipated revenue performance in 2025 is based on the projected expansion in real domestic economic activity of approximately 4.6 %.”
Tax revenue is expected to increase by 9.5 %, with taxes on goods and services estimated at EC$31.5 million. The government expects taxes on international trade and transactions to increase by EC$9.7 million, while taxes on income and profit are expected to reach EC$36 million.
The Minister of Finance said the government’s investment program for 2025 “reflects its heavy focus on building up further public infrastructure, including the construction and repair of several roads, river, and sea defenses, the building of hotels, hospitals, clinics, schools, police stations, and, of course, homes…“
However, the Opposition Leader said that while the fiscal package is the largest in the nation’s history, it contained a deficit of around EC$240 million, showing that the government plans to spend EC$247 million more than it plans to collect.
— Compiled by Devika Ragoonanan
