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with the Ministry of Tourism repealed the 10% hotel tax and replaced it with a 7.5% value added tax.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.