Abaco Chamber firm on SERZ extension request

#TheBahamas, August 22, 20222 – The Abaco Chamber of Commerce is stern in its view that the Hurricane Dorian-affected island should receive at least a two-year extension to the Special Economic Recovery Zone. This will make up for the disruptions to the rebuilding efforts due to the COVID-19 pandemic.

The acting president of the Abaco Chamber, Daphne Degregory-Miaoulis, spoke at the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) power breakfast on Wednesday, August 10.

“The government says you have three years but really haven’t had three years because there was COVID-19, and everything came to a standstill. I haven’t had the three years we were supposed to have to rebuild,” she stated.

“Now the supply chain is loosening up and starting to be a bit clear, although you still have to wait months to get supplies. I think we should be getting the additional two years to make up for what we lost, It’s just way too difficult for suppliers and for people who couldn’t manage to get their goods in. It’s not fair.”

The Abacos and Grand Bahama were declared Special Economic Recovery Zones by the government in late 2019 to provide a number of tax breaks and concessions to businesses and homeowners in the areas impacted by the deadly category 5 hurricane, Dorian.

Value added tax (VAT), import duty, and excise tax were eliminated on construction material, and all other physical goods bought and sold under the SERZ order. Transactions valued up to $500,000 had discounts offered on the VAT payable on the sale of real property. Exemptions were instated for import taxes on replacement vehicles.

Degregory-Miaoulis stated that the island remains challenged by a housing shortage.

While expressing concern over the number of derelict buildings on the island, she said, “ I understand that the government has a housing initiative for the civil servants first and foremost, many of whom are living in trailers. The lack of living accommodations on the island is a major challenge. The psychological impact of all of this is also an area not being addressed.”

She continued, “there are some issues of probate, families not being able to afford to deal with them, but really and truly in these cases, central government needs to come in and say this is unacceptable and clear it. All that debris is only going to cause further damage,” she said.

Last year the government extended the Special Economic Recovery Zone (SERZ) Order amendment allowing for the tax free importation of building supplies on Grand Bahama and Abaco to December of this year.