Bahamas

Reduced revenue inflows and higher-than-expected expenditures following the hurricane season led to a deterioration of the fiscal position in 2004, when the deficit widened to an estimated 3.2% of GDP. Minister of State for Finance Senator James Smith has warned that, unless there is an overhaul of the country’s tax system, the government faces revenue shortfalls in the future. Traditionally, the largest source of government revenues have been import and export duties, but the Bahamas’ entry into the Caribbean Single Market Economy (CSME) means dismantling the current tariff system and accepting a common external tariff. The government has yet to

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