The Tribune

By YOURI KEMP

Tribune Business Reporter

Residents and businesses in the Dorian-hit islands will be able to access "six main" tax reliefs when the Government's special economic recovery zones take effect this Sunday.

Gaynell Rolle, the Department of Inland Revenue's acting controller, detailed the procedures that must be followed on Abaco and Grand Bahama to obtain much-needed breaks designed to help them recover from Hurricane Dorian. Only individuals and businesses present within these zones will be able to access this relief, which ends on June 30, 2020.

Ms Rolle said: "There are six main tax benefits that are available under the [recovery zones] order. You will find them at the border, at the cash register and at the tax agencies. They relate specifically to goods; they do not include services.

"They include tax-free importation of goods directly into the recovery zone. This applies to cargo directly imported into Grand Bahama, Abaco and the surrounding cays. The Value-Added tax (VAT) free purchase of goods inside the recovery zone; this applies to goods purchased inside of the zone. Duty free and VAT-free replacement of vehicles and boats; relief from all Business License fees; real property tax relief on improved property, not vacant land; and discounted VAT on the sale of real property."

Supplies

Ms Rolle added that the tax relief will apply to "a wide range of items - from building supplies, furniture and office equipment to fishing and farming supplies, medicine and personal hygiene products inclusive of water, fruits and vegetables and other unprepared and prepared foods including foods sold at restaurants. If you have no stove to cook on, you can eat take-out and save on VAT.

"At the cash registers in Abaco and Grand Bahama, consumers will effectively pay no VAT on most items available locally," she continued.

"They do not have to apply for approval because these purchases are made directly within the zone. Consumers will just shop within the recovery area and approved items will be VAT-free at the cash register.

"For direct cargo imports at the border in Grand Bahama, Abaco and the surrounding cays, certified individuals and businesses will have the benefit of tax-free imports on approved items. Pre-approval by the Ministry of Finance and the Department of Inland Revenue is required for presentation at the border." Here, businesses and individuals must complete the "tax relief consolidated form".

In Abaco, these forms can be submitted to the "Hurricane Dorian one-stop shop" at the government complex, while in Grand Bahama they must be submitted to the Department of Inland Revenue. Submissions must first be certified, and persons will be required then present the form to Customs for the tax waiver.

Items approved to receive tax breaks will be published on the Department of Inland Revenue's website and shared with the general public. Ms Rolle said the relief will help individuals affected by the "catastrophic" storm to rebuild their lives more "affordably and in greater speed".