Executive Chairman of the Bahamas Electricity Corporation (BEC) Leslie Miller said it would be "unfair" to levy value-added tax (VAT) on electricity bills.
Miller said many BEC consumers are already "overburdened" with the cost of power, and questioned if a tax should be applied to this bill.
"To me, that's a double edged sword," he said.
"You're taxing me twice, as an individual then as a user of electricity and that's something that the Ministry of Finance has got to decide on."
He added: "Personally I don't think it's fair, but that's not my decision. The decision is whether the government can accrue sufficient revenue to enable it to cover expenses by bringing in VAT."
Miller said the impact of VAT on BEC bills would depend on the rate the government sets and the minimum consumption threshold that would determine who is exempt.
Deputy Prime Minister Philip Brave Davis said recently the government has yet to decide whether electricity will be taxed.
Davis, who has ministerial responsibility for BEC, said a final decision on whether to place VAT on BEC bills will be made based on public opinion on the issue.
"No decision or discussion -- not at our level -- has taken place yet on that issue, save to say it has been put in the public domain," Davis told The Nassau Guardian.
The government has proposed to apply a 15 percent VAT to a broad range of goods and services come July 1.
In the VAT bill released in November, the tax on electricity would kick in for residential consumers once they consume over a certain amount of power a month.
Ishmael Lightbourne, VAT consultant to the government, has said the amount "in consideration" was 200 kilowatt-hours per month.
The proposed legislation and regulations left the space blank where the exact amount that would constitute this threshold would have appeared.
The justification for the tax on electricity is that the government stands to lose about $30 million in annual revenue if electricity bills are not subject to VAT.
Recently, Financial Secretary John Rolle said the Ministry of Finance was considering a higher threshold, which would allow more consumers to benefit from a VAT exemption on their bill.

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