The Bahamas Federation of Retailers has appreciated the government’s move to cut duty rates on imported clothing and shoes by 20 per cent. According to the federation, this duty cut has not only resulted in a ‘strong sales capped by “one of its best holiday seasons on record but also empowered the vendors to pass on their cost savings to customers. 

The Federation now expects the government to codify the new policy into legislation and expand it to the rest of the wholesale and retail industry as it will significantly boost the local economy through increased domestic investment, increased local employment, increased domestic demand, increased selection & variety and therefore increased returns to the government via the resultant increases in NIB & VAT receipts generated.

This elimination of 20-25 percent Customs duty on footwear and apparel was unveiled in the 2018/2019 budget. Recognising that Bahamian retailers were struggling to compete with online shopping and south Florida merchants, the Government implemented the Customs duty waiver as part of its package of tax relief measures.