The Bahamas Ministry of Finance in conjunction with the Ministry of Tourism repealed the 10% hotel tax and replaced it with a 7.5% value added tax.

The VAT will be charged on hotels and home rentals as well as services purchased by guests.

The 2.5% tax savings indicates the government's determination to make a Bahamas vacation a value for money spent, according to Tourism Minister Obie Wilchcombe.

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