The Prime Minister and Minister of Finance delivered a communication Wednesday in the House of Assembly on the green paper on corporate income tax released by the government.
The Hon. Philip Davis told Parliamentarians, “of significance here is the prevailing concern about the inherent bias in the business license fees where firms still incur a significant tax burden even in loss making years because calculations are based on turnover instead of profits. I want to emphasize here that if it is decided that a corporate income tax is to be levied on companies doing business in The Bahamas those companies paying a corporate income tax will not also pay business license fees.”
Davis further stated, “stakeholder feedback is key to the government crafting the optimal design for the corporate income tax strategy. The green paper was released on May 15th, 2023 and I wish to announce today Madam Speaker that we have extended the period of consultation until the 31st of August, 2023.
A green paper is released to invoke conversation, consultation and ideas on the subject matter it covers. The Prime Minister also said that the green paper on corporate tax was created with the support of a business advisory committee which conducted interviews with stakeholders.