The Tribune

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A Bahamian manufacturer is eyeing a “significant” 66 per cent Business Licence fee rate increase as a result of the proposed 2013-2014 Budget changes, although this is more than offset by the sector’s continued import duty exemptions.

Geoffrey Knowles, operations manager at Aquapure, told Tribune Business: “It’s significant. We’re looking at a 66 per cent increase from three-quarters of 1 per cent to 1.25 per cent.

“We’re in the $5-$15 million [turnover] bracket. Three quarters of one per cent to 1.25 per cent, that’s going to be significant for a lot of companies. I’m not sure how many companies are making money.”

Mr Knowles added: “You pay Business Licence whether you make a profit or not. The duty allowance that they give us manufacturers has been good for us. Taking off that 10 per cent duty was a good thing.

“They have extended that exemption, which we are quite worried about. I would rather pay the increase in Business Licence than pay the 10 per cent duty. That would be a killer to us.”

Meanwhile, Sky Bahamas chief executive, Captain Randy Butler, said: “Our taxes from the Government surpass $1 million, directly and indirectly, every year.

“We are paying Business Licence at 1.25 per cent on revenues, and on top of that we have a tax on fuel, NIB went up, NAD has gone up and is proposing to top-up gain, group insurance and it’s on and on.

“It seems as if the Government isn’t looking at some of these industries as a whole. Bahamasair is getting an increase in subsidies, but there is no real help for the domestic carriers. Domestic airlines are really helping build these Family Islands. There is no impetus to help businesses in any real way in this Budget. Islands like Cat Island, with these small resorts, depend on these domestic carriers.”