The Tribune

ELIZABETH MP and Minister of Financial Services Ryan Pinder seconded a Bill to amend the Industries Encouragement Act which seeks to re-instate the incentives available to Bahamian manufacturers prior to 2010.

Speaking in the House of Assembly yesterday, Mr Pinder said the government is now trying to reverse a “failed economic strategy” and bad decision by the previous FNM administration.

“It is wisely accepted that it is essential that we diversify our economy and broaden our economic base if we are to significantly increase government revenue without increasing the tax burden on Bahamians, which I say is already too heavy,” he said.

“Tax increases were the way of the FNM, but creating economic opportunity for Bahamians is the way for our government.

“Historically, Bahamian manufacturers were given duty exemptions on imported machinery and raw materials to use in manufacturing operations; these incentives and tax concessions lasting for as long as that manufacturer was an ‘approved manufacturer’.

“In 2010, in the middle of an economic downturn, when companies, and especially Bahamian manufacturing companies, were facing the reality of threats to their economic viability, the FNM government, in its quest to seek additional government revenues, fiscally punished these same Bahamian engines of job growth – Bahamian manufacturers.

“A component of the FNM’s failed revenue measures was the removal of the tax concessions available for manufacturers under the Industries Encouragement Act and Tariff Act after five years of enjoying these concessions, and thereafter imposing a flat 10 per cent duty on all imports to support their manufacturing operations.”

Mr Pinder said evidence shows that like most of the tax increases under the FNM, this strategy not only failed to generate the anticipated revenues, “but served as a brick wall in the way of economic advancement for Bahamian entrepreneurs, a penalty against business in the Bahamas”.