The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

A LOCAL civic leader says the Bahamas Government should revoke tax concessions to the GB Port Authority following its approval to the GB Power Company of an increase in power fees.

Rev Glenroy Bethel, Founder and President of Families For Justice (FFJ), says it is unfair that the GBPA and the GBPC have been granted tax concessions on real property tax, but still want to impose a fee increase “on the backs” of residents.

“If the Grand Bahama Port Authority and the Grand Bahama Power Company want to increase fees on the backs of the Bahamian people in Freeport every three years, and add these increases to the rest of the Grand Bahama settlements, then the Government of the Bahamian people should take back the tax concessions given to the Port Authority and let its licensee, the Grand Power Company, pay its fair share of taxes for the real property tax,” said Rev Bethel.

“No investors should be allowed to benefit from the concessions given by the Bahamian people’s government and still profit every three years on the backs of the Bahamian people. This would be unfair to the Grand Bahama community and the Business community alike.”

Rev Bethel accused the GBPA and GBPC of double-dipping.

“Stop double-dipping; wasn’t the concessions enough that the Bahamian people’s Government signed into an agreement so that the economy of Grand Bahama could be stimulated and to encourage foreign investment into the city of Freeport Grand Bahama?”

Last Thursday, GBPC announced it was further suspending the implementation of a storm recovery and stabilization (SRS) charge on October 1 to recover $15.6m in Hurricane Dorian restoration costs.

The power company had initially planned to implement the increase on April 1, after receiving approval in February from the GBPA, the regulator, but deferred it after consultation with the Port Authority as a result of the coronavirus pandemic in March.

Rev Bethel said the statement issued by GBPC about deferring the charge until January 2021 is good news for the GB community, but was concerned that investors like GBPC are receiving major tax benefits and still profiting off residents.

He noted that in 2017 the government granted tax concession in real property taxes for 20 years. Rev Bethel said this tax break has benefitted the Port Authority and passed down to the Power Company and all its licensees.

“These tax concessions are the Bahamian people’s tax money,” added Rev Bethel.

He stated that three main stakeholders in Freeport who benefit significantly from the concessions are the Port Authority, the Power Company and all other licencees of the GBPA, and homeowners in Freeport.

“So, if homeowners are beneficiaries for tax breaks in Freeport, and the Grand Bahama Port Authority and GB Power are beneficiaries, why…do we have to pay the increase in fees?” he asked.

“Why are homeowners and business owners forced to pay higher fees if we are entitled to tax concessions too, just like the licencees of the Grand Bahama Port Authority? The government of The Bahamas, the Port Authority and the Power Company must answer this.”