#Nassau, May 30, 2019 – Bahamas – The Government has proposed a number of tax relief measures to provide some reprieve to all citizens and to encourage economic activity by making the import of certain items relatively cheaper, thereby comparatively easier for persons to enter existing markets and, in some cases, create new ones.
Deputy Prime Minister and Minister of
Finance the Hon. K. Peter Turnquest listed the tax relief measures during the
Budget Communication 2019/20, in the House of Assembly, Wednesday, May 29, 2019.
DPM
Turnquest explained that there will duty reductions worth $28 million in
revenue. “In an effort to rebalance the tax burden between the provision of
goods and services and reduce the attendant distortionary impacts, we are
beginning to make good on our commitment to reduce duty and excise rates over
the next three years.
“To
that end, we will, at this time, adjust the duty on selected frequently
imported items. Generally, the focus of these reductions is around educational
supplies and equipment, and household implements and goods. These items include:
· Home Refrigerators of 18 cubic feet or smaller (to become duty free)
· Home Stoves that are 30 inches wide or smaller (to become duty free)
· Garbage Can Liners (from 45 per cent to 25 per cent)
· Fire Extinguishers (from 45 per cent to free)
· Flashlights (from 45 per cent to 25 per cent)
· Pens (from 10 per cent to free)
· Pencils (from 10 per cent to free)
· Crayons (from 10 per cent to free)
· Sharpeners (from 45 per cent to free)
· School Rulers (from 10 per cent to free)
· Chart Paper (from 20 per cent to free)
· Projectors (from 45 per cent to 35 per cent)
· Projector Screens (from 45 per cent to 35 per cent)
· Radios (from 45 per cent to 35 per cent)
· Pots/Pans (from 45 per cent to 25 per cent)
· And all Household Furniture (from 45 per cent to 25 per cent)
The
Government has also reduced the duty from musical instruments;
allowed trailers for commercial fishing boats to be eligible for duty exemption
and amended the Spirits and Beer Manufacture Act to reduce the
minimum bushel requirement for production, to now make microbreweries eligible
for import duty concessions.
The DPM explained, “You would recall that the government earlier
in the fiscal year increased the VAT zero-rating on Light Bills from those
under $200 to those under $300. It was approved as a temporary measure that was
to expire at the end of June.
He added, “I am pleased to advise that this higher ceiling has
been made permanent, and customers will continue to enjoy VAT zero-rating on
electricity bills under $300. Water Bills under $50 per billing cycle will also
continue to enjoy VAT zero-rating. I can also announce today Mr. Speaker that
as of March of this year over 23,500 households have benefitted from this
elimination of VAT from these utilities.”
Environmental Protection and Advancement
DPM Turnquest also explained that to advance the Government’s
commitment to environmental sustainability, it has tailored several measures in
the 2019/20 Budget with an aim to not only protect the environment, but also to
increase environmental awareness across all islands.
In addition, he stated that the measures aimed at environmental
purposes are in line with the Government’s planned ban on plastic by January
2020. These measures include:
Reducing the duty on new vehicles between 1.5 liters (1500cc) and
2.0 liters (2000cc) valued at $50,000 or less from 65 per cent to 45 per cent.
In this context, only cars with less than 200 miles on the odometer will be
considered ‘new’. This makes smaller, more fuel-efficient vehicles more
affordable.
Harmonizing the rates on all new electric and hybrid vehicles
valued up to $50,000 to 10 per cent. It should be noted here that this measure
will have a sunset clause of five years, after which this special revision will
revert closer to the rates for other small size vehicles.
Increasing the duty on biodegradable and
compostable plastic shopping bags, from five per cent to 45 per cent; but at
the same time, reducing the duty on reusable cloth shopping bags from 30 per
cent to 5 per cent.
Banning the use of selected single-use plastic bags, plastic food
utensils, and Styrofoam food containers by January 1, 2020.
By Llonella Gilbert
Photo Caption: Parliamentarians walked from Churchill Building, across Rawson Square to the House of Assembly for the Budget Communication, today, led by Prime Minister, the Most Hon. Dr. Hubert Minnis, centre, and next to him Deputy Prime Minister and Minister of Finance the Hon. K. Peter Turnquest (with the Budget document in briefcase). DPM Turnquest highlighted the government’s proposed tax relief measures to provide some reprieve to all citizens during this Budget 2019/20 presentation in the House of Assembly, May 29, 2019.
(BIS Photo/Patrick Hanna)