#Nassau, October 24, 2019 – Bahamas – The Exigency Order issued following Hurricane Dorian has been extended to 31st December 2019, Prime Minister the Most Hon. Dr Hubert Minnis has announced.
The order allows for individuals
directly impacted by Hurricane to import approved goods, duty free and VAT-free,
and applies to areas impacted by the storm, including Abaco and the Abaco Cays,
Grand Bahama, Sweetings Cay, Deep Water Cay and Water Cay.
VAT on fuel for generators will also be
waived for areas still without electricity.
The Prime Minister made the announcements
in the House of Assembly on Tuesday, 22nd October during his wrap up
of the debate on amendments to the Disaster Preparedness and Response Act.
It is yet another step taken by the
Government to stimulate economic recovery on the islands of Grand Bahama, Abaco
and the Cays, and to encourage residents to return home to begin the rebuilding
process in the wake of Hurricane Dorian.
The concessions are part of the
Government’s reconstruction effort that will require the assistance from many
quarters, Prime Minister Minnis told MPs.
“The government of The Bahamas invited
the international community to assist with the search, rescue, recovery and
restoration phases of this disaster response,” said the Prime Minister. “The
government’s efforts are in conjunction with the extraordinary efforts of the
local private sector, churches, NGOs and individual Bahamians.”
The extension to the Exigency Order is
the latest concession being put in place to assist residents impacted by
Hurricane Dorian.
Affected islands have also been
designated as Special Economic Recovery Zones for the next three years. This
will enable the impacted communities to benefit from a broad range of tax
breaks and incentives and allow for the rebuilding of homes and businesses.
The special zone features seven key
concessions. It allows for the duty-free purchase of all materials, fixtures,
furniture, vehicles and equipment for business and residential construction
needs. Business license fees for operations within the zone will also be
waived.
Real Property Tax payable on all
eligible properties will be waived once these properties are reconstructed,
restored or otherwise made inhabitable by October of 2020.
A VAT credit of up to 50 per cent has
been extended on the sale of real property, provided that the sale is
immediately followed by material construction on, or enhancements to the
property, or the utilization of the purchased property to material commercial
activity.
A one-stop-shop of all key ministries
will be equipped and empowered to ensure the resumption of commercial activity
in the affected areas.
This hub will house representatives of
the Small Business Development Centre, the Bahamas Investment Authority, the
Ministry of Finance, The Bahamas Investment Authority, The Department of Inland
Revenue, The Department of Environmental Health and Building Permits units of
the various agencies.
A $10 million loan guarantee and equity financing program has been established as well as the extension of the Provisional Business License Program to all businesses – with some exceptions.
Release: Office of the Prime Minister
Commonwealth of The Bahamas