The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

LOWERING the Value-Added Tax (VAT) rate would be a “positive” for the marina industry, one local operator said yesterday, adding that the possible postponement of its implementation was “ even better news” given the uncertainty over its impact.

Brooks Russell, the 186-slip Palm Cay marina’s harbourmaster, told Tribune Business: “I think that for marina operators, any lowering on VAT is a bonus and a positive for the marina industry. More importantly, we need to know what’s going to happen with the VAT on our fuel and the tax on our charter industry.

“Above all is the importance of postponing the implementation of VAT until the public has a good understanding of how it will be implemented. The concern of most operators is what the VAT charges will be and how it will impact our industry.”

During his closing remarks in the Mid-Year Budget debate last week, Prime Minister Perry Christie confirmed that VAT would be introduced at a lower rate than the initially proposed 15 per cent, with the implementation date also subject to potential change.

“Lowering of VAT is great news, and even better news is the possible postponement of the implementation. There are a lot of questions that still need to be answered,” said Mr Russell. He added that there was serious concern over the future of the yacht charter business.

“The charter business is the economic engine for the Bahamas marina industry. That is what drives your market. Right now, there is a lot of uncertainty from the brokers in Florida calling and asking about charters their clients want to have in the Bahamas, but aren’t sure what to do at this point,” Mr Russell added.

“Charters are getting diverted to other places right now because we have no answer as to what VAT will be on the industry, or what government has planned for this sector of the industry. We just need some definitive answers going forward.”

During a Marina Operators of the Bahamas (MOB) meeting last month, operators called on the Government to pursue the largely uncollected 4 per cent Charter Fee levied against foreign yachts, and potentially exempt their sector from VAT, while warning that the uncertainty was already driving business away from the Bahamas.