Carib Scope

分类： politics

  • PM Defends Cut to Fuel Dealer Margins

    PM Defends Cut to Fuel Dealer Margins

    Amid unprecedented skyrocketing fuel prices that have pushed pump costs to as high as $15 per gallon in Belize, Prime Minister John Briceño has publicly defended his administration’s controversial decision to slash profit margins for domestic fuel dealers, while signaling that large multinational oil companies operating in the country will be the next group called upon to make concessions to ease consumer burden.

    In a morning press interview, Briceño laid out the government’s rationale for the policy change, emphasizing that every stakeholder across the fuel supply chain must contribute to absorbing the strain of global price volatility. “As a government, we feel that everybody has to do their part. Consumers are doing their part because they’re paying more. The government has been cutting taxes. So it was only reasonable or fair for the dealers also to take a cut,” the prime minister stated.

    Under the new adjustment, dealer margins have been reduced to less than $1 per gallon. Briceño acknowledged that fuel dealers overwhelmingly favor retaining higher margins, but argued that the current market dynamic has rendered the 2004 margin formula obsolete. That original framework was designed when fuel prices were far lower, and as global costs have surged in recent years, dealer margins have grown far larger than policymakers ever anticipated when the formula was established.

    “It was never foreseen back then that the prices would go to thirteen and fifteen dollars. So the higher the price was, the bigger their margin is,” he explained. He added that he received correspondence from a former Texaco executive confirming that Belize’s fuel dealer margins were already among the highest in the entire Central American region, even before the latest price spikes.

    Turning next to major operators including Puma and Sol, Briceño accused the large oil firms of increasing indirect costs for dealers – such as facility rent and percentage cuts on in-store sales – as fuel prices have climbed, effectively siphoning off a share of dealer profits already. Briceño said it is now time for these large corporations to make their own concessions to help lower consumer costs, noting that upcoming discussions between the government and company leadership will address this issue. “I think it is also incumbent on the companies to make some adjustments, and maybe that’s a discussion we’re supposed to be having,” he said.

    When pressed on criticism that the margin cut violates the 2004 formal agreement between the government and fuel dealers, Briceño offered a straightforward response: “We could argue every day whether we did or not. The point is we need to set the price.” He added that while dealers have sent formal correspondence to his administration raising objections, he has not yet reviewed the document. The prime minister expressed confidence that a constructive resolution will be reached, noting that he does not expect dealers to shut down operations in protest. “I believe that cooler heads will prevail. I don’t see them wanting to close down their gas stations,” he said.

    Briceño also disclosed new data on the government’s existing fuel-related relief measures, revealing that the administration has already cut more than $60 million in fuel taxes so far in 2026, with total projected tax cuts for the year expected to land between $60 million and $80 million. He reaffirmed the government’s commitment to continuing to lower fuel prices as global market conditions improve, but noted that the government will eventually need to recover a portion of lost fuel tax revenue to maintain critical public social programs that support low-income and vulnerable Belizean communities. These programs include universal free education, student scholarships, national school feeding initiatives, and affordable housing projects targeted at single-mother households. “Free education, scholarships, the feeding programme, housing for mostly single mothers — we have to help the poor people,” he emphasized.

  • Pierre defends crime strategy in St Lucia, amid public calls for death penalty in homicide incident

    Pierre defends crime strategy in St Lucia, amid public calls for death penalty in homicide incident

    Public anger over violent crime has forced St. Lucia’s top leadership to confront growing national frustration, with Prime Minister Philip J. Pierre standing by his administration’s multi-pronged approach to public safety while calling for reasoned, constructive discourse from citizens.

    Pierre laid out his government’s position during a pre-Cabinet press briefing held May 26, with official details of his address shared in a written statement from the Office of the Prime Minister. The discussion comes at a tense moment for the Caribbean nation: last week’s fatal shooting of Joy St. Omer, a young mother, sent shockwaves across the country, igniting fierce public debate and spurring online petitions pushing authorities to reinstate and enforce capital punishment as a response to rising violent crime.

    In his remarks, Pierre did not dismiss the public’s anger. He acknowledged that widespread frustration over persistent crime is shared across the political spectrum and among all caring residents of St. Lucia. “I’m very concerned. I continue to be concerned, and I’m sure all politicians, all well-meaning politicians, are concerned,” he said. However, he pushed back against rushed, emotion-driven takes on social media and talk shows, urging the public to embrace what he called “mature” engagement with the complex issue. “It’s complex. So let’s not believe we’ll get answers on the talk show,” he added.

    The prime minister emphasized that the government is prioritizing a long-term, integrated strategy that ties together four core pillars: aggressive law enforcement, targeted prevention programs, rehabilitation for at-risk populations, and sweeping institutional reform to fix gaps in the justice system. He pointed to a series of already launched initiatives already delivering results, including the Swift Justice Project and the Criminal Backlog Reduction Court, which opened in March 2026. Official data notes that the specialized backlog court has already cleared roughly 100 long-pending criminal cases in just a few months of operation.

    Additional ongoing efforts, per the prime minister’s office, include expanding virtual court hearings at the Bordelais Correctional Facility to reduce delays, completing refurbishment work on the Soufriere Courthouse, and developing St. Lucia’s first-ever National Crime Prevention Policy, which centers on youth intervention programs and community-based initiatives to curb violence before it occurs.

    Pierre also addressed common critiques of the government’s resourcing of law enforcement, acknowledging that the sector faces ongoing budget constraints. He came to the defense of the country’s Health and Security Levy, a dedicated funding mechanism that generated $40 million last fiscal year to support policing and national security operations. Moving forward, the administration continues to expand its public safety workforce: 80 new law enforcement officers are set to be recruited imminently, following recent hiring rounds for the national fire service and correctional facility staff. “It’s a holistic approach that we take, and we are going to continue,” Pierre said. “So we are going to continue doing it, but it’s challenging.”

  • Gov’t rolls out tax cuts to keep food prices in check

    Gov’t rolls out tax cuts to keep food prices in check

    Six months to the day after his New Democratic Party won national office, Prime Minister and Finance Minister Godwin Friday of St. Vincent and the Grenadines announced a sweeping set of targeted policy interventions on Wednesday, May 27, 2026, designed to curb runaway food price inflation driven by spiking global fuel and shipping costs.

    Delivering a nationally televised address from Kingstown’s Administrative Complex, flanked by cabinet members and senior public officials, Friday framed the relief package as a balanced response to immediate household financial strain and long-term economic resilience, noting that soaring global commodity costs have hammered this small island developing state, which relies almost entirely on imported energy and most core food supplies.

    “While we work to fix the broader economic challenges we inherited, everyday families are already feeling the squeeze of rising costs,” Friday stated. “Responsible leadership requires balancing fiscal stability with protecting the social programs that matter most to our people. That is why we are taking decisive action to cut household living costs and ease the burden on working Vincentians.”

    Breaking down the drivers of local food price hikes, Friday highlighted that global benchmark Brent crude prices surged 68% between January and May 2026, climbing from roughly $64.50 per barrel to over $108. For a nation dependent on imported fuel, these price increases pass directly through to transport, refrigeration, and agricultural production costs — and ultimately to grocery shelves.

    Among the most impactful immediate measures is a temporary 90-day elimination of the customs service charge on all liquefied petroleum gas (LPG), widely used for cooking across households and small food businesses. Friday noted that international LPG prices have jumped 27% since January 2026, rising from $0.70 per gallon to more than $0.90. Without intervention, these increases would push up local 20-pound cylinder prices for households to above the current EC$40.30, and 100-pound commercial tank costs beyond the current EC$192.40, raising prices for prepared food across the country. Over the 90-day period, the government will absorb roughly EC$504,368 in foregone revenue to keep cooking costs stable. “Cooking gas is not a luxury — it is a necessity for every family’s dinner table,” Friday emphasized. “This revenue is better left in household pockets to help them weather this crisis, and we will keep monitoring global markets to protect Vincentian families.”

    To address another key driver of imported food inflation — skyrocketing shipping costs — Friday announced structural reforms to the country’s import tax system. Earlier this year, a standard 20-foot shipping container of essential goods from the U.S. to Kingstown cost between $2,200 and $3,000; rates now run as high as $4,800. Under the previous tax regime, import duties were calculated based on both the value of goods and total shipping costs, including carrier surcharges, meaning tax amounts rose automatically every time shipping rates increased, with the full cost passed to consumers. The new policy will remove all shipper surcharges (including fuel and congestion fees) from taxable import value, and fix the benchmark freight rate used for tax calculations at January 2026 levels. “This reform will cut the landing cost of imported goods, block imported inflation from passing fully to consumers, and stop the constant ratcheting up of food prices every time global logistics costs spike,” Friday explained.

    For long-term food security, the administration is rolling out targeted support for domestic agricultural producers to cut reliance on volatile imported food supplies. Local farmers will receive subsidized seed and a 50% discount on fertilizer to boost domestic output of staple foods. Friday added that the government is also closely tracking construction input costs, particularly cement, and stands ready to implement a full VAT waiver if prices cross a critical threshold to protect ongoing housing projects and construction jobs.

    To guarantee that the fiscal concessions actually reach consumers rather than just boosting business profits, Friday announced that the National Cost of Living Task Force will conduct weekly price monitoring across retail and food service sectors. “Relief must reach the people who need it, not just pad corporate margins,” he said.

    The prime minister acknowledged the heavy fiscal constraints his administration inherited from the previous government, including a 2025 debt-to-GDP ratio of 113% and a central government overdraft more than double the legal limit, exceeding $200 million. Despite these challenges, Friday argued that prioritizing short-term foregone revenue to protect household food budgets was the only responsible choice, framing the full package as a “fiscally responsible shield against extraordinary global pressures.”

    “My government knows that many Vincentians are anxious about what comes next,” Friday said in closing. “But we are not powerless against global challenges, and you will not face this crisis alone. Together, we will move from pressure to progress, from uncertainty to stability, and from emergency relief to long-term resilience.”

  • PM announces measures to keep fuel prices down

    PM announces measures to keep fuel prices down

    Six months to the day after the New Democratic Party won office in St. Vincent and the Grenadines (SVG), Prime Minister Godwin Friday announced a targeted 90-day relief package in a national address from Kingstown on Wednesday, cutting import-related taxes and fees on fuel to cap retail gasoline and diesel prices amid a crippling global energy cost surge.

    Friday framed the intervention as a necessary response to what he called a “difficult global reality”, where skyrocketing crude oil prices and elevated global shipping costs have created a crisis for small, fuel-dependent developing nations like SVG. Between January and May this year alone, the price of Brent crude jumped 68%, climbing from roughly US$64.50 per barrel to more than US$108 per barrel. As a small island nation that relies 100% on imported fuel, SVG would feel these price hikes immediately and directly, he emphasized.

    Without proactive government action, Friday warned, SVG’s retail fuel prices would have surged to among the highest in the Eastern Caribbean, with ripple effects across every corner of the national economy. Based on current global market conditions, passing full import cost increases directly to consumers would have pushed gasoline prices up by an estimated EC$5.60 per gallon — a more than 42% jump from the current rate of EC$13.22. That would have taken gasoline to nearly EC$18.82 per gallon. Diesel would have climbed from EC$12.56 per gallon to roughly EC$17.71, while low sulphur diesel would have risen from EC$12.93 per gallon to almost EC$17.85, he projected.

    Such dramatic increases would not only harm private motorists, Friday explained. The cost shock would quickly filter through to higher public transport fares, elevated grocery prices, steeper electricity bills, increased operating costs for farmers and businesses, and ultimately a crippling spike in the cost of living for every household across the country.

    Declaring that his government “refuses to sit back and allow that to happen”, Friday outlined two key policy changes to cap retail pump prices for three months: a cut to fuel excise tax, and a 50% reduction in the customs service charge applied to imported petroleum products.

    Under the intervention, prices will be held at fixed capped rates: EC$16.92 per gallon for regular gasoline, EC$16.26 per gallon for standard diesel, and EC$16.40 per gallon for low sulphur diesel. The prime minister clarified that the policy works by having the SVG government absorb a portion of global price increases through forgone public revenue, transferring direct savings to consumers. The state will cover roughly EC$1.90 per gallon of gasoline and EC$1.45 per gallon of diesel that would otherwise be passed to consumers, he said.

    The relief package is specifically designed to protect three core groups: ordinary motorists, public transport operators, and fuel-reliant local businesses and producers. For average household vehicle owners, the intervention prevents a sudden massive monthly jump in fuel expenses, putting meaningful savings back into family budgets to cover basic needs like groceries. For minibus operators, taxi drivers, farmers, and fishers — whose core operating costs are directly tied to fuel prices — the policy keeps operating expenses far lower than global market conditions would otherwise force, helping to prevent widespread price increases across food and transport services. Friday added that by capping fuel costs, the government is also slowing the pace of broader inflation across the SVG economy, delaying the need for producers and service providers to pass higher costs to consumers. He noted that with the new capped prices, SVG will remain among the Eastern Caribbean States (OECS) countries with the lowest fuel prices, rather than becoming one of the most expensive.

    In opening his address, the prime minister acknowledged the difficult fiscal trade-offs the government is making to implement this relief package. His administration inherited a challenging economic situation when it took office six months prior, including a national debt-to-GDP ratio of 113% and a government overdraft exceeding EC$200 million — more than double the legal limit. Despite these significant fiscal constraints, Friday argued that responsible governance requires prioritizing household and business stability, framing the fuel relief package as a core part of his administration’s “people-first governance model”.

    He described the intervention as “a fiscally responsible shield against extraordinary global pressures”, noting that the government is willing to accept short-term revenue losses to prevent a far more damaging economic shock for consumers. Friday also linked the fuel relief measures to a broader government push to curb rising living costs across key sectors of the SVG economy, announcing additional upcoming plans to stabilize electricity and food prices for residents.

  • Perez: Protect Caye Caulker’s Charm

    Perez: Protect Caye Caulker’s Charm

    In a decisive move to preserve the unique character of Belize’s most beloved coastal communities, the national government announced a six-month moratorium last Thursday on new development approvals and construction for large-scale projects across four high-priority locations.

    The temporary ban applies to any structure that exceeds 45 feet in height or spans more than three floors, and the scope of the restrictions extends beyond just vertical construction. Andre Perez, the area representative for Belize Rural South, confirmed that the policy also includes a freeze on new dock development, part of a wider government effort to curb unchecked overgrowth along the country’s vulnerable coastlines.

    Among the four covered communities, Perez highlighted Caye Caulker as a location of particular concern. The small island is renowned globally for its laid-back, quaint atmosphere that draws millions of eco-tourists and casual visitors each year, and local officials have grown increasingly alarmed at the pace of unregulated large-scale development creeping into the area. “Caye Caulker is very special in terms of the quaintness we want to maintain,” Perez explained in a public address on the policy. “We don’t want to make overdevelopment take over that place and have high-rise buildings overtaking and then we compromise the charm of the town.”

    The moratorium, which was formally approved by the Belizean Cabinet, covers four coastal areas: Caye Caulker Village, Hopkins Village, the Placencia Peninsula, and Sittee River Village. While the restrictions are temporary, they are set to remain in effect while government agencies carry out two key processes: broad public consultations with local residents and stakeholders, and in-depth technical assessments to evaluate the long-term environmental, infrastructural and cultural impacts of high-density and vertical development across these coastal zones.

    Perez added that the temporary pause is just the first step in a broader overhaul of coastal development planning across Belize’s popular island regions. Officials are already drafting similar protective regulations for nearby San Pedro, another top tourist destination that has faced rapid growth in recent decades. “By extension, right now we’re working in the San Pedro plan as well to say enough is enough,” Perez said.

  • GOB Working to Retain Cuban Medical Personnel Amid US Pressure

    GOB Working to Retain Cuban Medical Personnel Amid US Pressure

    Facing mounting pressure from the United States that threatens the future of Cuba’s long-running medical cooperation program in Belize, Prime Minister John Briceño has outlined a two-pronged strategy to shore up the country’s healthcare system, confirming the government is both pursuing alternative recruitment channels and negotiating to keep willing Cuban medical staff in the country.

    In an interview with the local morning program *Open Your Eyes*, Briceño confirmed that Belize’s Ministry of Health has already launched global recruitment drives to prepare for any potential workforce gap that could open if Cuban personnel are forced to leave. The ministry is actively sourcing qualified nurses and physicians from a range of Latin American and Asian nations, including the Philippines, El Salvador, Honduras and Nicaragua, to backfill any sudden vacancies across the country’s public health facilities.

    Briceño emphasized that his administration remains committed to retaining Cuban medical workers who have expressed a desire to continue their service in Belize, and is currently working to craft a revised working arrangement that would satisfy Washington’s demands. The United States has drawn widespread criticism for labeling Cuba’s state-organized international medical missions as a form of human trafficking, a characterization that Belize has implicitly pushed back against through its longstanding implementation of direct payment policies.

    Notably, Briceño clarified that Belize has directly compensated individual Cuban medical personnel since the program’s inception, rather than routing payments through the Cuban government, a structure that aligns with US demands for proof that medical workers participate voluntarily. The government’s current goal is to formalize this arrangement in a way that meets US requirements, allowing willing Cuban staff to stay on.

    “We’re working to craft a framework that convinces the Americans that every medical worker here is present of their own free will,” Briceño stated, adding that he remains optimistic about reaching a workable compromise. “I’m hopeful that we’ll be able to work through this issue. I’ve always been a very optimistic person.”

    The standoff highlights the tricky diplomatic balancing act small Caribbean nations like Belize must navigate, as they seek to maintain beneficial bilateral cooperation agreements while avoiding punitive measures from the United States over its long-running sanctions and political pressure campaign against Cuba.

  • Bolivia versoepelt regels noodtoestand te midden van aanhoudende onrust

    Bolivia versoepelt regels noodtoestand te midden van aanhoudende onrust

    LA PAZ, BOLIVIA – In a move that reshapes the executive branch’s emergency powers amid ongoing nationwide unrest, Bolivian President Rodrigo Paz has formally revoked a law that previously set strict parameters and limits on the declaration of national states of emergency. Official government gazette confirmed the revocation on Wednesday, a change that streamlines the process for the Paz administration to enact emergency measures when facing public instability.

  • Trump’s face could appear on US$250 bill

    Trump’s face could appear on US$250 bill

    A provocative new push from within the Trump administration has sparked fierce debate across Washington, as senior political figures and regulators clash over a proposal to add former President Donald Trump’s portrait to a newly created $250 United States banknote, a plan that would break 150 years of established American currency tradition.

    Details of the initiative were first reported by *The Washington Post* on Thursday, which obtained internal design mockups for the proposed bill. The draft concept frames the new banknote as a tribute to America’s 250th anniversary of independence, marked in 2026, with the wording “America 250 anniversary” printed alongside Trump’s image. According to the publication, two senior Trump appointees at the US Treasury Department began lobbying leadership at the Bureau of Engraving and Printing to develop working prototypes of the bill as early as last year.

    If the plan moves forward, it would mark the first time in 150 years that a living American has been featured on official US currency, breaking a long-standing norm and explicit federal regulation that prohibits depictions of sitting presidents on circulating or commemorative money. Bureau employees, who spoke to reporters on condition of anonymity to avoid professional retaliation, confirmed that bureau leadership immediately flagged significant legal and procedural barriers to senior Treasury officials, including US Treasurer Brandon Beach.

    After Bureau of Engraving and Printing director Patricia Solimene pushed back against the initiative to defend existing federal law, she was abruptly reassigned to a new, lower-profile role within the agency, multiple sources confirmed to the Post.

    The proposal to add Trump to the $250 bill is far from an isolated move: over the past several months, the Trump administration has moved aggressively to embed the president’s name and likeness across a wide range of national cultural and government institutions, a pattern that has drawn repeated accusations of cultivating a cult of personality around the 79-year-old commander-in-chief.

    Earlier this year, the US Commission of Fine Arts, whose entire voting panel is made up of Trump appointees, unanimously approved the production of a 24-carat gold commemorative Semiquincentennial coin that includes Trump’s imagery. In recent months, two major national institutions — the John F. Kennedy Center for the Performing Arts and the US Institute of Peace — have been officially rebranded to add Trump’s name to their titles. Large banners bearing the president’s portrait already hang in the lobbies of the US Department of Justice and Department of Agriculture, and the State Department has confirmed that Trump’s likeness will soon be added to the inside pages of new US passports.

    Formal legislation to authorize the $250 bill and change existing federal law to allow a living president’s depiction was introduced to Congress last year, but the bill has not advanced to a floor vote or committee markup and remains stalled in legislative limbo. A spokesperson for the Treasury Department offered a measured response to questions about the internal proposal, telling the Post that the Bureau of Engraving and Printing is “conducting appropriate planning and due diligence” in response to the pending congressional legislation.

    Democratic lawmakers have uniformly condemned the initiative, with Senate Banking Committee member Senator Mark Warner arguing that the unprecedented plan amounts to a naked power play designed only to inflate the president’s personal standing. “This is the White House blatantly stoking the president’s ego at the expense of long-held American institutional norms,” Warner said of the proposal.

  • President Abinader donates entire 2025 salary to support social and community projects

    President Abinader donates entire 2025 salary to support social and community projects

    In a striking demonstration of commitment to public service and marginalized communities, Dominican Republic President Luis Abinader has announced he will donate his entire 2025 presidential salary to 16 non-profit organizations and religious institutions across the country. The total contribution amounts to 5,344,000 Dominican pesos, all earmarked for social welfare programs designed to lift up vulnerable populations.

    Each of the 16 recipient groups will receive an equal disbursement of 334,000 Dominican pesos, a decision aligned with Abinader’s long-stated pledge to direct all of his public earnings toward projects that deliver tangible social impact and raise living standards for citizens facing economic hardship.

    The allocated funds are spread across a diverse set of high-priority areas, spanning community development, public health, child and youth welfare, vocational training, grassroots sports, and religious infrastructure upgrades. Community development projects receive the largest share of funding, totaling 2,338,000 Dominican pesos distributed across seven local organizations.

    One key supported initiative is the Dominican Foundation for Integral Development (FUNDESI)’s vector-borne disease prevention campaigns, which target dengue, malaria, and Zika in high-risk low-income neighborhoods including Capotillo and Gualey. Other community-focused projects include the reconstruction of a rural healthcare clinic led by the Despertando Sonrisas Foundation, and the construction of new public recreational and community gathering spaces by the FUHUESAN Foundation and Colinas del Manzano Association.

    For public health and disability support programming, 1,336,000 Dominican pesos has been set aside. This funding supports cleft lip and palate corrective surgery campaigns run by the Operation Smile Foundation, covers the down payment for a new emergency ambulance for the Huellas Misioneras Volunteer Program, sustains housing operations for low-income cancer patients managed by the Faces Dominicana Foundation, and expands in-home medical care services for stroke survivors through the Dominican Stroke Foundation.

    Children and youth-focused initiatives receive a total allocation of 1,002,000 Dominican pesos. Funds will go toward therapeutic sponsorship programs and classroom accessibility modifications for children on the autism spectrum, run by the Manos Unidas por Autismo Foundation. Additional youth programming includes social inclusion activities for children in the municipality of Haina organized by FUNDECEV, and personal development workshops and skills training camps hosted by the Fundasocial Foundation.

    Remaining funding supports two other causes: the MC Deportes Foundation will use its allocation to purchase athletic equipment for community volleyball and baseball tournaments, while the Santa Lucía Mártir Parish will put its contribution toward construction of a new perimeter fence and facility air conditioning upgrades.

    The Dominican Presidency emphasized in its official statement that all donations are structured to deliver direct, publicly auditable impact across operations, equipment purchases, clinical services, and distribution of essential supplies to communities in need. Through this gesture, President Abinader has reaffirmed his commitment to partnering with grassroots organizations to reduce systemic social inequality and expand access to critical support services for vulnerable populations across the nation.

  • Healthcare the focus of 2026 govt budget

    Healthcare the focus of 2026 govt budget

    Fresh off its re-election victory in the May 12 general election, the Davis administration of The Bahamas has laid out its ambitious fiscal roadmap in the 2026-2027 budget, unveiling a plan to boost recurrent revenues by $470 million even as it cuts its projected surplus by 24 percent and navigates ongoing global economic volatility. Newly sworn-in Finance Minister Michael Halkitis delivered his maiden budget address to the House of Assembly on Wednesday, outlining that the projected 2026-2027 fiscal surplus has been revised downward from the previously forecast $291.4 million to $223.1 million, a $68.3 million reduction that Halkitis framed as a deliberate policy choice.

    Halkitis explained the downward adjustment stems from two key driving forces: first, the administration’s commitment to prioritizing Bahamian citizens’ livelihoods by directing additional funding to upgrade the country’s healthcare system, and second, persistent volatility sparked by the unresolved Middle East conflict, which has disrupted global energy and fuel markets and reignited inflationary pressures that raise import costs for small open economies like The Bahamas. Despite the narrower surplus, Halkitis emphasized that the country’s overall fiscal position remains positive, noting that the projected $223.1 million surplus still means government revenue will outpace total spending.

    The administration is holding firm to its existing $75.5 million surplus target for the 2025-2026 fiscal year, which concludes at the end of June, even amid widespread volatility in global economic and trade conditions that threaten to dampen tourism demand — the backbone of The Bahamas’ economy — and push up consumer prices. Halkitis did not provide an updated closing surplus figure for the current fiscal year, but expressed confidence the target will be met, citing disciplined government spending restraint and growing optimism that the full $130 million in projected Domestic Minimum Top-Up Tax (DMTT) revenues will be collected before the fiscal year closes.

    The government’s bold $470 million, 12 percent revenue growth target for 2026-2027 — which would lift total recurrent revenues to $4.357 billion from the current 2025-2026 projection of $3.887 billion — comes against a mixed backdrop. Data shows that for the first nine months of 2025-2026 through the end of March, revenue collection has lagged the prior year’s pace, with only 65.3 percent of the full-year target collected, compared to 69.4 percent at the same stage in 2024-2025. Additionally, the budget forecasts that real GDP growth will slow sharply from 6.5 percent in the current fiscal year to 1.8 percent in 2026-2027, a rate that is projected to remain steady the following year. This growth projection also differs from the 3.8 percent 2025 growth estimate released last week by the Bahamas National Statistical Institute, which was stronger than the budget forecast. The disconnect between slowing projected growth and the large revenue increase has drawn attention, given The Bahamas’ consumption-focused tax system that ties revenue growth closely to economic expansion.

    A large portion of the projected revenue gain is expected to come from a dramatic expansion of DMTT collections. The 15 percent minimum corporate tax, introduced to bring The Bahamas into compliance with the G-20/OECD global minimum corporate tax initiative designed to curb profit shifting by multinationals to low-tax jurisdictions, is projected to see revenues nearly triple from $130 million in 2025-2026 to $350 million in 2026-2027, a 169 percent year-over-year increase. This $220 million year-over-year jump will account for nearly 47 percent of the total $470 million revenue increase the government is targeting.

    The Bahamas’ top independent fiscal watchdog, the Fiscal Responsibility Council, previously raised doubts that the full $130 million in 2025-2026 DMTT revenues would be collected on time, as the necessary collection frameworks, regulatory guidance and implementing mechanisms had not been finalized by the time of its mid-year assessment. But Halkitis pushed back on those concerns Wednesday, confirming he expects the first full round of DMTT revenues to be received in June, just before the current fiscal year closes. He also revealed that the expected taxpayer base for the new levy is larger than initial projections: when the 2025-2026 budget was drafted, officials expected fewer than five entities to be subject to the tax, but updated data shows the number of liable taxpayers will exceed that initial estimate, creating an upside surprise for the current year-end fiscal position.

    Major entities already expected to fall into the DMTT net include the country’s two largest resort complexes, Atlantis (owned by Canada’s Brookfield Asset Management) and Baha Mar (owned by Hong Kong’s Chow Tai Fook Enterprises), as well as regional resort chain Sandals. All three major Canadian banks operating in The Bahamas — Royal Bank of Canada, Scotiabank and CIBC — have already set aside funds to cover their DMTT liabilities. Other notable entities that will likely be subject to the tax include Commonwealth Brewery, the leading Bahamian beer maker majority-owned by Heineken, Bahamas Telecommunications Company (BTC) controlled by Liberty Latin America, and Hutchison Whampoa’s Freeport port and container terminal assets. Shell’s Bahamian subsidiary already reported a $248 million accrued corporate tax liability on its 2024 books, per prior reporting by Tribune Business. Commonwealth Brewery even requested an extension to publish its 2025 year-end financial statements to accurately calculate its full DMTT tax obligations.

    Beyond DMTT, the government has identified three additional key revenue streams to hit its $470 million target. First, it has added a $99.228 million charge to the Grand Bahama Port Authority to cover the cost of public services provided in the Freeport port area that exceed tax revenues generated by the city. Second, it projects $24 million in new annual revenue from a revised real property tax category for foreign-owned primary residences: the new 0.625 percent rate will be applied to properties qualifying as the owner’s primary residence (down from the previous 180-day annual occupancy requirement), while the maximum annual tax liability (or cap) for these properties will rise 33 percent from $150,000 to $200,000. Third, the government forecasts VAT revenues will rise $110 million year-over-year to $1.635 billion in 2026-2027, with more than 60 percent of that increase coming from VAT on property sales over $1 million, which is projected to rise from $170.472 million in 2025-2026 to $237.366 million. Current year VAT collection is already on pace to exceed its $1.525 billion 2025-2026 target.

    Outlining the full 2026-2027 fiscal breakdown, Halkitis confirmed total revenues are projected to hit $4.4 billion, equal to 23.6 percent of GDP, while total expenditure will reach $4.1 billion (22.4 percent of GDP). Recurrent expenditure accounts for $3.7 billion (20.1 percent of GDP), with capital expenditure totaling $415.8 million (2.2 percent of GDP). The $223.1 million surplus equals 1.2 percent of GDP, with a primary surplus of 5.2 percent of GDP, and the debt-to-GDP ratio is projected to fall to 59.9 percent by the end of the 2026-2027 fiscal year.

    “While this surplus is lower than previously projected in the Fiscal Strategy Report 2025, the revision reflects a changing global and domestic environment. Ongoing tensions in the Middle East have increased uncertainty, particularly around energy and import costs,” Halkitis said. “At the same time, we have made the deliberate decision to strengthen our healthcare system, including increased support for the Public Hospitals Authority and further investment in hospital services. These are necessary and responsible choices. Although they have narrowed the surplus, the fiscal position remains positive, underscoring this Government’s continued commitment to sound financial management while prioritising the needs of the Bahamian people.”