Prime Minister, the Hon. Philip Davis announced several tax relief initiatives in a national address on Monday, January 12th.

Minister of Economic Affairs, Sen. Hon. Michael Halkitis appeared at a press briefing at the Office of the Prime Minister on Thursday where he elaborated on relief efforts for first time home buyers.

He told reporters, “historically what has happened is if an individual built a duplex resided in one side and rented the other side, the other side that was subject to real property tax and we will be amending the legislation to make that other side exempt as well. We recognize that many Bahamians when they are starting out, so to speak, they build a duplex or they build a triplex they live on one side and they rent the others and that is a form of income. And as well many people have the vision that they would rent the one side and use that to pay the mortgage. Historically, over they years that has been subject to property tax. We will now be making amendments and that will be a tremendous boon to young Bahamians who are just starting out in owning property.”

Halkitis also addressed the government’s intention to raise the first time homebuyers exemption ceiling from $500,000 to $600,000. He said, “what that means is no taxes applicable on those conveyances etc. and mortgages once the house or the property is valued at $600,000 or less. Again, this represents a significant saving to individuals who are buying their first home where they are no longer liable to pay those fees. That initiative was first introduced, I recall, under the Perry Christie administration and we have steadily increased that ceiling and now we will be increasing it again.”

In his national address Prime Minister Davis also announced a further 5% VAT reduction on non-prepared food that is set to take effect on April 1st.