Expand your thoughts on the impact of reduction of VAT on the Bahamas government Revenue. Impact of reduction in the value-added tax rate on Bahamas Government Revenue:

• -Firstly, it reduces value-added tax collection because of the rate cut.

• -Reduction in tax cuts may increase the sale of a specific category of the commodity than a normal trend. So that it will give a boost to transactions automatically. Overall value-added tax collection may surpass the earlier collection in a particular category.

• -Because of a boost in transactions or sales, employment generation takes place.

• -Ultimately employment generation increases the per capita income of the country.

• -Reduction of tax rate may attract new investors so effective utilization capital takes place.