The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Opposition’s finance spokesman has urged the Bahamas to “promote the hell out of Freeport” as a free trade zone, adding: “You can attract more flies with honey than you can with vinegar”.

K P Turnquest, the east Grand Bahama MP, said: “We have to use it properly, control the abuses and promote the hell out of it. Other countries are doing it. Cayman just established their’s; Hong Kong has one; Portugal has one; Colombia has one. 

“You might give up the direct taxation but you create an environment that is so big that you will collect taxes on the downstream that more than make up what you give up in real property and duty exemptions.

“You have to look at the bigger picture.

I think you can use the analogy that you can attract more flies with honey than with vinegar.”

The Government is extending the Hawksbill Creek Agreement’s (HCA) expiring tax incentives for a further six months until early February 2016, as it tries to come to a firm decision on whether to continue, amend or abolish them for the long-term .

Among the incentives that were set to expire  in August are a series of exemptions from taxes on real property; personal property; capital gains or capital appreciation; shares, debentures or other securities for companies registered in the Bahamas and having their registered office and principal place of business in the Port area; and exemptions from taxes on earnings in the Port area and outside the Bahamas.

“On top of this whole satiation is the World Trade Organisation (WTO) that we want to ascend to,” said Mr Turnquest.

“It is going to pose a challenge for our property tax discrimination regime now. It talks about fair treatment of all nationals. You can’t discriminate between nationals and non-nationals. That is going to become a problem.

“That is a where we are heading toward. Even if we say let’s let it expire and tax the foreigners, it’s short lived. What damaged would be done in that short period? If you say then let it apply to everyone, what are you going to do about those Bahamians who pay already for a service from the Grand Bahama Port Authority? The question is whether the central government can provide the same level or better service than the Grand Bahama Port Authority.”