The Tribune

THE government has extended tax breaks until the end of the year to support ongoing Hurricane Dorian recovery efforts on Grand Bahama and Abaco.

The Minnis administration will also reduce customs duty on fishing and farming equipment among other items nationwide, and remove duty on personal protective equipment, as the country grapples with the economic fallout from the COVID-19 pandemic.

In relation to the Economic Recovery Zone (Relief Order) 2019, Minister of Finance Peter Turnquest told Parliament this will include the extension of all concessions currently available to the qualifying islands, which are Grand Bahama and Abaco and associated cays.

“For the period January 1, 2021 to June 30, 2021, the concessions will be extended to cover building materials only,” he told the House of Assembly yesterday. “Let me repeat: Abaco and Grand Bahama will continue to enjoy the current VAT and duty exemptions through the end of the year.”

The tax waivers under the original orders were set to expire at the end of June.

Concerning duty reductions, Mr Turnquest announced that for the agriculture and fisheries industry, duty on fishing materials will be cut from 45 percent to 20 percent, effective July 1. Some of these items include: fishing rods, reels, lines, tackles and other materials.

The government is also reducing the duty on farming equipment for backyard farming from 25 percent to 10 percent. Some of the items to be affected are spades, shovels, work benches, machetes and hedge shears.

In an effort to spur construction activity, and thereby mobilise domestic capital, the government is reducing the duty on all building materials to 20 percent. This includes but is not limited to wood, glass, granite, steel, electrical supplies and fixtures, carpet, landscaping material and plumbing materials.

The rate of duty will be removed from nitrile examination gloves (antibacterial gloves), which are used as personal protective equipment (PPE) “to make it less costly for hospitals, companies and individuals to acquire these,” Mr Turnquest said.

“For a period of one year, we will remove the duty on other PPE items, such as gowns, and other surgical supplies, to ensure our healthcare workers, both private and public, are protected as we continue to fight this pandemic,” he said.

The deputy prime minister also said the Minnis administration is expanding the tax-free transfer of land where there is no change in beneficial ownership, with the approval of the VAT controller.

“We are also reducing duty on a few items to further encourage the adoption of more green technologies and plastic elimination, including duty reductions on environmental sea trash cans to assist in oceanic conservation and reusable metal water bottles from 45 percent to 10 percent; and duty reductions on motorcycles with an engine size of 125 cc or less and electrical motorcycles; from 75 percent to 10 percent. Off-road motorcycles will not be included in this rate reduction.”

He said a full schedule will be published detailing the items scheduled for duty and tax reductions.