The Tribune

STATE Minister for Finance Michael Halkitis yesterday outlined “key revenue measures” contained in the 2014/2015 budget.

“On the basis of an agreement between the Ministry of Tourism and the commercial airlines designed to maintain and increase airlift to our country, in support of new rooms in the tourism industry, we are proposing to replace the current $75 processing fee paid by the commercial airlines for entry and exit with a flat $2.50 fee per inward and outward document,” he said.

“As well, the current Customs attendance fees of $50 to $200 per hour levied on commercial airlines will be eliminated. In order to qualify for these adjustments, the commercial airlines will be required to meet certain minimum requirements in the form of a minimum of 300 international rotations, i.e. landings and takeoffs, per year. They must also increase the number of seats coming into the market and bring all outstanding processing fees up to date.”

He said that with these fee adjustments, the government is also proposing to increase the air departure tax from $25 to $29 effective October 1.

“We are proposing that in the amendment to the Stamp Tax Act, we are proposing that the treasurer be granted the power to request records to determine stamp tax liability with respect to stamp tax collections by financial institutions,” he added.

“Additionally, financial institutions will be given 30 days after the end of the month to report on duty collected and submit payment to the Treasury, this is in an effort to get more timely payments of stamp tax.”

Late filings would be subject to a fee of $1,000, he said.

Mr Halkitis said the government is also proposing an amendment to the Business Licence Act to clarify that the deadline for filing and paying Business License taxes will be January 31 and March 31, respectively;

He said that an amendment to Chapter 98 of the Tariff Act is proposed so that businesses outside the Port Area in Grand Bahama will be granted duty exemption on capital goods for their businesses.

He added that the government will levy a fee on tobacco excise stamps, at 25 cents for self-adhesives and 20 cents for dry stamps.

“Additionally, we are proposing that the Act be modified to include products other than tobacco. In this regard, we are very concerned about illegal alcohol imports so we will be moving to ensure that stamps are put on certain alcohol imports.

“The idea is that there is a lot of smuggling going on and we want to expand the excise stamp programme to include certain other goods, particularly in the first phase, alcohol.”

He added that the government is also proposing that the duty exemptions enjoyed by the Bridge Authority be limited to imports directly related to the maintenance and rehabilitation of the Paradise Island bridges.

“In addition, we are proposing that both the City of Nassau Revitalization Act and the Family Island Development Encouragement Act be extended for one year because we believe these have been beneficial” in spurring economic activity in these areas.