The Tribune

By KHRISNA VIRGIL

Deputy Chief Reporter

kvirgil@tribunemedia.net

MINISTER of Finance K Peter Turnquest yesterday announced the government’s tax relief measures which feature the elimination or reduction of import duties on clothing, accessories and on a number of food, beverage, personal care, car parts and accessories, including those needed by those who are disabled.

However, what was missing from Mr Turnquest’s budget communication was the Free National Movement’s election campaign promise to eliminate value added tax on breadbasket items and other areas.

When questioned about this, the East Grand Bahama MP told reporters that this pledge could not be delivered immediately because of the overspending and unpaid bills left behind by the Christie administration, calling it a “trade off.”

“Literally two days ago, we had to say let’s be conservative, before we go giving out concessions, let’s be sure we have the house covered,” Mr Turnquest told reporters.

According to the Tariff (Amendment) Bill, tabled in the House of Assembly yesterday, the duty on several food products was reduced. It is not yet clear when the new rates will go into effect.

The reductions are: soy sauce and pizza sauce, reduced from 30 per cent to five per cent; fruit drinks reduced from 60 per cent to duty free; salmon fillet, shrimp and prawns have been reduced from 35 per cent to free; breads, cakes, pastries and chips from 30 per cent to 20 per cent.

Nutritional preparations for tube feeding only; jams, fruit jellies, marmalades - including guava jam and jelly, pineapple jelly, strawberry jam and orange marmalade; fruit or nut puree; milk; yoghurt and pastas are also now reduced from five per cent to duty free.

In addition, clothing and accessories are now 20 per cent, down from 45 per cent. Toys will also see the same duty reduction.

Other duty reductions include breathing apparatus, gas masks and air purifiers from 45 per cent to free; medical equipment – including ultrasonic scanning apparatus, magnetic resonance imaging apparatus, and dental drill engines from 25 per cent to free; water heater parts from 45 per cent to 35 per cent; massage apparatus from 35 per cent to free; primary cell batteries from 45 per cent to 25 per cent and exercise and gym equipment from 45 per cent to 25 per cent.

Another category of reductions was outlined in the Excise (Amendment) Bill.

Parts and accessories for carriages for the disabled; new pneumatic tyres of rubber used on motor cars, buses or lorries, aircraft, motorcycles and bicycles have been reduced from 45 per cent to 25 per cent.

Retreaded tyres used on buses or lorries and motor cars were cut from 45 per cent to 25 per cent; used pneumatic tyres used on the same types of vehicles from 45 per cent to 25 per cent, inner tubes of rubber used on motor cars, buses or lorries, aircraft, motorcycles and bicycles from 45 per cent to 25 per cent and electric motor cycles from 65 per cent to 25 per cent.

The bill further replaces the rate of .25 cent per stick on cigars, cheroots and cigarillos, including beadies with 200 per cent.

Mr Turnquest, the deputy prime minister, also said the government plans to reduce import duties on a number of personal care and other personal products, as well as household items, including: shampoo; hair products; soap; toilet tissue; low-flow shower heads; sunglasses; clothes hangers; shoe parts; sound and video equipment parts; microphones; building materials, including: sheets of veneers; wood flooring of various materials; wooden forms for concrete pouring; wooden posts and beams; asphalt shingles; Durock and cement panel boards; and other cement panels and sheets.

However he did not specify the rate reduction on these items.

Mr Turnquest also said business licence fees also will be reduced.