Harborside HOA going to increase due to VAT increase

[timesharen00b]

Looks like HOA is going to go up for us Harborside owners =(

Got email from Harbourside today. I guess this is the key point:

Recently, the Bahamian Government made changes to the VAT law. Effective July 1, VAT was increased from 7.5% to 12%. Unfortunately, as a result, we anticipate that the annual maintenance fee for Harborside Resort at Atlantis will likely increase. Our entire operating budget, as well as reserve project expenses, are subject to VAT.

 

[komosatp]

I think there might be one more VAT increase planned in the future. If I recall correctly, when the Bahamanian government decided to restructure its tax system it eliminated its categorical sales taxes in favor of a flat VAT with very few exemptions. They started it at 7.5% and I kind of recall the long term plan for it to go up to 15%. From what I've read recently, that might have been revised down to 10%, but then revised up to 12%. In other words, this is a long term transition for the country and there could be more changes on the way.

For comparison, here are the various sales tax rates you pay in the capital of the USA:

• 5.75% - General rate for tangible personal property and selected services
• 10% - Liquor sold for off-the-premises consumption
• 10% - Restaurant meals, liquor for consumption on the premises, and rental vehicles
• 18% - Parking motor vehicles in commercial lots
• 14.8% - Hotels (transient accommodations)

https://cfo.dc.gov/page/tax-rates-and-revenues-sales-and-use-taxes

 

[Scotten]

I guess they'd like a balanced budget or lowered borrowing costs? I'm not sure why their is so out of whack, since I thought they made a lot of money from int'l banking and finance.

"Our fiscal state of affairs has been building from years of fiscal hocus-pocus and hide the debt," said Turnquest, as cited in local outlet Eyewitness News. "Simply put, the chickens have come home to roost and unless we were willing to risk another downgrade to total crap bonds, with our ability to borrow in crisis evaporating, we had to address the problem."

 

[JudyS]

Bahamian deputy prime minister and finance minister Peter Turnques said:
"Our fiscal state of affairs has been building from years of fiscal hocus-pocus and hide the debt," said Turnquest, as cited in local outlet Eyewitness News. "Simply put, the chickens have come home to roost and unless we were willing to risk another downgrade to total crap bonds, with our ability to borrow in crisis evaporating, we had to address the problem."

"Total crap bonds"? Is that an official rating in the financial markets?

 

[alwysonvac]

Not good news but thanks for the heads up.

 

[sb2313]

"Total crap bonds"? Is that an official rating in the financial markets?

As a resident of the state of IL, I’d say yes.