Looks like higher prices in Nassau and on Castaway Cay

[mmouse37]

Just saw this on the Dis newsfeed.

http://www.wdwinfo.com/news-stories/higher-tax-rate-to-affect-visitors-to-nassau-castaway-cay/

Last month, government officials in the Bahamas announced an increase to the VAT (value added tax) that will make shopping for souvenirs in Nassau a little less affordable. Effective July 1st, the VAT for goods and services in the Bahamas will increase from 7.5% to 12%.

While the change is official next week, retailers were recently given an extension until August 31st to make any price changes, after larger retailers complained that “fine details” of the new rules were released just a week before the change was to go into effect.

The higher VAT will affect Disney Cruise Line passengers who will see higher prices at retailers in Nassau and shops on Castaway Cay, plus likely increases in excursion prices in both ports.

MJ

 

[DynamicDisneyDuo]

That's a pretty good jump. We rarely even get off the ship in Nassau and don't buy things on CC unless it's a super-awesome CC exclusive, which we haven't run into lately.

 

[hubbard53]

wow. that's a big jump! Bahamas risk ruining their tourism industry - it is expensive to fly there - I can get free flights with poins but still have to pay over $100 per ticket in taxes and fees. Hotel tax is crazy. Automatic 18% gratuity services... and now a 12% VAT. Sorry but Bahamas just isnt worth the cost...

 

[Cruising Engineer]

We're never vacationed in Nassau or the islands of the Bahamas except for stops at CC. They have beautiful beaches, according to all the advertisement on TV. With all the taxes quoted @hubbard53, we will probably skip the Bahamas.

 

[daisyx3]

We have stopped at Nassau twice; next month we had already planned on staying onboard. I do spend money at CC though; hope they hold off until after my cruise (since they have an extension).

 

[southerngirl528]

That's a pretty good jump. We rarely even get off the ship in Nassau

Agree, that is a mighty hefty increase! And like you, I haven't even gotten off the ship in Nassau in years.

 

[Dug720]

And up go the costs of the Cabanas since they are subject to that tax.

 

[Quellman]

For those who wish to remember -
January 2015 - VAT 7.5% added.
July 2018 - VAT increased to 12% but features some exclusions (breadbasket items, property insurance, utility bills below certain amounts, items exported to customers abroad).

This VAT did increase the cost of activities at Castaway Cay as a result. You will expect this additional 4.5% to also be collected by Disney and remitted to the Bahamian government on your behalf.
There are many shops on Nassau that will provide you VAT free items as you will be exporting it from the island. Food items are generally not considered VAT free eligible.

I will also mention that the VAT was somewhat suggested by the IMF for a way of the Bahamas to collect taxes, since they do not really have taxes on anything else, property, income, sales. The IMF originally suggested 15%. Based on my reading of the situation, they Bahamian government did not want to throw a 15% surcharge on everything all at once and is taking a phased approach to allow the economy to stabilize with each increase. I wouldn't be surprised to see an additional increase in another few years.

 

[southerngirl528]

For those who wish to remember -
January 2015 - VAT 7.5% added.
July 2018 - VAT increased to 12% but features some exclusions (breadbasket items, property insurance, utility bills below certain amounts, items exported to customers abroad).

This VAT did increase the cost of activities at Castaway Cay as a result. You will expect this additional 4.5% to also be collected by Disney and remitted to the Bahamian government on your behalf.
There are many shops on Nassau that will provide you VAT free items as you will be exporting it from the island. Food items are generally not considered VAT free eligible.

I will also mention that the VAT was somewhat suggested by the IMF for a way of the Bahamas to collect taxes, since they do not really have taxes on anything else, property, income, sales. The IMF originally suggested 15%. Based on my reading of the situation, they Bahamian government did not want to throw a 15% surcharge on everything all at once and is taking a phased approach to allow the economy to stabilize with each increase. I wouldn't be surprised to see an additional increase in another few years.

Interesting information. Thanks!

 

[ladyofthetramp]

Wowser! That is a big jump. My cabana days may be behind me. Oh well!

 

[Snowwhyt]

Sounds like I might as well spend my money on having it shipped home and save the luggage space over the local tax.
I'm sure I'll still spend plenty while I'm there to aid their economy.

 

[MSPeeler]

Wowser! That is a big jump. My cabana days may be behind me. Oh well!

I don't understand taxes or wording that isn't "dumbed down" very well... but you're saying we will have to pay 12% tax on the cabana's now?! (or any excursion at CC?) UGGGGHHHHH if so!

 

[DynamicDisneyDuo]

I don't understand taxes or wording that isn't "dumbed down" very well... but you're saying we will have to pay 12% tax on the cabana's now?! (or any excursion at CC?) UGGGGHHHHH if so!

That is correct.

 

[truck1]

Some one on a boating forum I'm on posted a news link, which was an open letter to the Bahamian goverment from a person who basically was there for 25 years, tried to invest millions,a long with a lot of other companies, and almost all were run off by the corruption over there. Basically the gist is that the people in charge over there are more worried about lining there pockets then actually doing something to make the Bahamas a vacation destination. I'll have to see if I can find the article again and post it over here.

 

[ladyofthetramp]

I don't understand taxes or wording that isn't "dumbed down" very well... but you're saying we will have to pay 12% tax on the cabana's now?! (or any excursion at CC?) UGGGGHHHHH if so!

Yes- that is a big jump!

 

[MSPeeler]

Yes- that is a big jump!

That is correct.

I wonder if this will happen to open up availability of cabanas to those cruisers who may not normally be able to get one...... food for thought.

 

[truck1]

Found it

https://thenassauguardian.com/2018/06/19/the-bigger-picture-of-the-bahamas/

 

[Islandwdw]

I don’t post, but since we have family in the Bahamas, I’ll weigh in. The previous administration was UNBELIEVABLY corrupt. As in, steal money from brand new fully operational hospitals, and keep them closed rather than providing health care. They were voted out. The new administration is trying to repair the infrastructure, and though the tax is high, there’s no other way to give the citizens power, water, schools and medical care. There’s no property tax in the Bahamas.