The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Businesses in the southern Family Islands say the government appears to “have a lot of money it is throwing around” pre-election as they praised its move to designate the area a “special economic zone”.

Betty Miller, owner/operator of Hillside Supplies on Long Island, told Tribune Business she was excited at the possibilities that both duty and VAT concessions can bring for both residents and businesses.

“We’re very excited. We were waiting for a while but thank God it’s going to be a good help,” she said. She added that the impact on building material costs, in particular, will be a big boost, adding: “A lot of property is selling here. So with the property is selling, I guess people will build. It will be good because a lot of the winter residents are building homes, so this will help them and me very much.”

The prime minister, in unveiling last week’s budget, identified Andros and the southern Bahamas as the islands that will be included in the government’s “special economic zone” because their “pace of consistent economic development has been behind that of the rest of the country”.

The islands targeted for import duty and VAT breaks on building materials for homes and businesses include Ragged Island; San Salvador; Rum Cay; Cat Island; Long Island; Mayaguana; Inagua; Crooked Island; Acklins; and Long Cay.

The prime minister said: “The designation as a special economic zone also provides concessions on business licenses payable and on real property tax for qualifying individuals. Included in this are concessions and discounts for VAT on conveyances, with zero VAT payable by Bahamians on transactions under $500,000, and with discounted VAT for non-Bahamians under that same threshold.

“These concessions will last for two years and are intended to be a catalyst for accelerated economic activity in the southern Islands by prospective investors, as well as Bahamians who may be looking to build or buy a home in those islands.”

Allison Mortimer, co-owner of J’s Discount in San Salvador said, “This is excellent. I noticed that the government has a lot of money that they are throwing around now.”

Ms Mortimer said she will “wait and see” before deciding whether to pass any tax savings on to her customers, or try to regain some of what she lost during last year’s COVID-19 lockdowns and business closures.

Alisette Deleveaux, owner/operator of Sonsette Villas on Crooked Island, said that while she heard about the budget’s duty and VAT concessions, she is uncertain if she will be able to take advantage of them.

She added: “It all sounded good to me but I have not recovered from Hurricane Joaqiun, so I haven’t been able to do much of anything for a long time now. I wanted to fix my badly damaged roof and get new furniture, but you need money to get these things so what good is duty free to me when I don’t have the money to buy anything?

“Unless I can accumulate some funds to do something, because I don’t think they are going to give us 100 percent of what we need, I am not sure. I just have to think about this a lot, but it sounded really good and encouraging.

“When Hurricane Joaquin happened they were giving some duty-free stuff, but that could not help me because I needed the money to go and buy the stuff and then have them come over duty-free.”