Prime Minister Dr Hubert Minnis. Photo: Donavan McIntosh/Tribune staff
ECONOMIC ZONE PLAN FOR SOUTHERN ISLANDS
A SPECIAL economic zone will be created for the southern islands to encourage people to invest in homes and businesses in these communities, Prime Minister Dr Hubert Minnis has announced.
The islands that will benefit are: Ragged Island, San Salvador, Rum Cay, Cat Island, Long Island, Mayaguana, Inagua, Crooked Island, Acklins, Long Cay, and Andros.
“Through the provisions of an amended Family Island Development Encouragement Act (FIDEA), residents and businesses on these islands — or investing in these islands — will qualify for both duty and VAT concessions on the full range of materials they will need to build or renovate a house, or to start or expand a business,” Dr Minnis said.
He said the basis of selection focused on those islands where the pace of consistent economic development has been behind that of the rest of the country.
“The designation as a special economic zone also provides concessions on business licence payable and on real property tax for qualifying individuals,” he added.
This includes concessions and discounts for VAT on conveyances, with zero VAT payable by Bahamians on transactions under $500,000, and with discounted VAT for non-Bahamians under that same threshold.
These concessions will last for two years and are intended to be a catalyst for accelerated economic activity in the southern islands by prospective investors, as as well as Bahamians who may be looking to build or buy a home in those islands, he added.
By DENISE MAYCOCK
Tribune Freeport Reporter
dmaycock@tribunemedia.net
THE government is extending its current tax relief order to continue to support reconstruction efforts in Abaco and Grand Bahama, Prime Minister Dr Hubert Minnis said yesterday.
The relief order, which is known as the SERZ, will continue to the end of December 2021 providing tax relief for the full suite of construction-related supplies and activities.
“It will go a long way in supporting the full restoration of the impacted communities,” Dr Minnis said while delivering his 2021/2022 budget presentation in the House of Assembly.
He said the government will provide tax incentives to encourage property owners in the communities of Abaco and Grand Bahama for two years by eliminating VAT on conveyances for 58 properties under $250,000 for Bahamians.
Dr Minnis believes this will encourage people to invest in buying properties and homes on those islands.
Foreign buyers under the same threshold will get a discounted VAT rate.
“Under the Accelerate Bahamas Plan, we want to incentivise persons to move with urgency with the investment plans. Not only will this spur commercial activity, but it will also make these transactions more affordable for ordinary Bahamians,” he said.
Dr Minnis noted that residents of Abaco and Grand Bahama have benefitted from tax relief concessions to the tune of over $260m.
The extension of the Special Economic Recovery Zone Order will continue to ease the burden of rebuilding after Hurricane Dorian, he added.
In terms of the Grand Bahama economy, Dr Minnis said critical domestic and quality foreign direct investment will help to turn the economic tide here on the island.
He noted that his government has made substantial investments in the past fiscal year to prepare for the island’s eventual rebound by acquiring the Grand Bahama International Airport.
“We purchased the Grand Bahama International Airport for $1,” he said. “Pre-Dorian, this airport brought 75,000 visitors to Grand Bahama who spent more than $140m on the island over the course of the year.”
Dr Minnis gave an assurance that work will begin shortly to build a world-class airport and add to the international gateways across the country.
Comments
tribanon 3 years, 6 months ago
This comment was removed by the site staff for violation of the usage agreement.
DDK 3 years, 6 months ago
Tribune's freedom of speech policy on rocky ground!
tribanon 3 years, 6 months ago
I've been told Carl Bethel is behind it. lol
DDK 3 years, 6 months ago
We understand Minnis flew into Abaco last week to attend the "grand" opening of a shopping plaza beleved to be owned by a big numbers boss built, no doubt, off the backs of Abaco gambling addicts. Interestingly, Abaconians will tell you they have seen neither hide nor hair of this p.m. or that of either of the two Abaco parliamentarians since before Killer Hurricane Dorian...
thephoenix562 3 years, 6 months ago
Lies
DDK 3 years, 6 months ago
If he was in fact a no-show, perhaps he thought better of making an Abaco landing!
Empiricist 3 years, 6 months ago
The Prime Minister is outstanding.
tribanon 3 years, 6 months ago
The wealthy racketeering criminal thug Sebas Bastian certainly thinks so. And many believe Bastian is being given a free-ride on gaming taxes, customs duties, etc. by Minnis and his AG Bethel in exchange for financially backing Minnis and the FNM party in this next national general election. The Tribune's reporters should bluntly ask both Minnis and Bethel about this and whether or not either of them has any indirect significant business ties with Bastian or any enterprise in which Bastian has a direct or indirect beneficial ownership interest of any kind.
tribanon 3 years, 6 months ago
AG Bethel should be asked by The Tribune's staff reporters: How is it the wealthy racketeering numbers bosses like Sebas Bastian can sue the government for the right not to pay their gaming taxes, and then not pay such taxes while the legal action drags on, yet the rest of us Bahamians must simply pay our VAT and other taxes or else?
And Minnis should be asked by The Tribune's staff reporters: How is it one of the wealthiest racketeering thugs in our country, namely Sebas Bastian, gets to build a multi-million dollar development in Abaco that benefits greatly from Minnis's declared Dorian related construction relief concessions? Surely the Dorian relief was intended for the needy and not the greedy. How could Bastian possibly have met the "needy" qualification for such relief?
It certainly would appear there are quid pro quo dealings here that warrant proper investigation by the mainstream news media outlets.
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