The Bahamian economy loses $2 billion — about 20 per cent of gross domestic product (GDP) — worth business to online shopping and shopping in Florida, according to the Bahamas Federation of Retailers (BFR), which believes the elimination of import duties for apparel, shoes and fashion accessories in The Bahamas would address the situation.

The step would improve the competitive ability of local Bahamian wholesalers and retailers and boost domestic competition, which would lead to an increase in private sector employment and value-added tax (VAT) revenue, the federation feels.

The country imposes a 20 per cent import tax on clothing and swimwear, shoes, belts, bras and underwear, scarves, and socks and stockings.

BFR says smuggling is a common for Bahamians and expats alike when it comes to easily portable personal items, according to a report in the highest-circulated English newspaper in the Bahamas.

The country is bleeding not just domestic business and employment, but millions in tax revenue as well. The BFR notes that import duty rates make it impossible to price at a competitive level.

To add to the problem, the country’s national airlines Bahamasair advertises ‘shop in Florida’ specials with discounted rates on the number of bags Bahamians can bring back and banks based in the country regularly advertise loans and credit cards for shopping abroad, BFR adds. (DS)

Fibre2Fashion News Desk – India

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