The Tribune

By JADE RUSSELL

Tribune Staff Reporter

jrussell@tribunemedia.net

ECONOMIC Affairs Minister Michael Halkitis revealed yesterday that business licence applications for taxi drivers, straw vendors, and roadside vendors will be fast-tracked - while only 3,000 of 33,000 applications have been approved so far. 

During a press briefing at the Prime Minister’s Office Mr Halkitis said all business applications will be dealt with by or before March 31, which is when current licences will become invalid.

“We have an excess of 33,000 business licence applications, of which 3,000 so far have been successfully dealt with, approved, and there’s nothing else that’s required of them,” he said.

 He explained 47 percent of the business applications have either reported zero turnover or the same exact turnover for the last three years.

 The Department of Inland Revenue is aiming to verify the turnovers reported on some of the applications, said Mr Halkitis.

 “What we have found is that of all the applications we have just under half, 47 percent either reporting zero turnover or turnover, exactly the same for the last three years.

 “And so, what the department has determined is that they require additional information to verify these reports.”

 Mr Halkitis clarified that not all businesses are being required to provide income statements, adding a decision was made to fast track certain applications.

 “Because there are people from the very small businesses to the very large businesses who are now applying for either renewals or new business licences. We have decided to fast track a certain category of licences. So, your taxi drivers, straw vendors, roadside vendors, we’ve agreed to fast track those,” he said.

 He noted an additional 24 persons have also been deployed to The Department of Inland revenue to assist with the excess number of applications.

 When asked if some businesses were underreporting its income to avoid paying for a business licence, Mr Halkitis responded that there have been issues with under reporting. 

 “There have been issues where it has been under reporting, I don’t want to point the finger at everybody. But we have to ensure that we do our best.”

 He stressed: “As I said, nobody would be put out of business. You know, we will resolve all of the issues before the 31st of March.”

 “We’re not requiring everybody to go and hire an accountant or put in audited statements or even put in income statements. What we’re saying is, in some cases, additional information is required. That might be a utility bill, that might be a bank statement, that might be a rental agreement, whatever. But it’s an effort to ensure that these turnover amounts are credible.”

 In recent times, small business owners have expressed frustration over the new requirements affecting business licence renewals, describing them as “short notice”, “offensive”, “insensitive” and “cruel”.

 The Free National Movement has accused the Davis administration of failing small businesses, saying its “ill-advised” policies have made it difficult for business owners to operate. 

 The party spoke out hours after the Bahamas Chamber of Commerce and Employers Confederation criticised the government on its recent policy changes related to business licence renewals.

 Last month, the Davis administration made policy changes mandating that all businesses provide the real property tax assessment number for the building from which the business operates, even if they are renting the space.

 They are also requiring businesses that earn less than $100,000 to submit proof of income at the time of applying for a business licence renewal, among other things.

 The BCCEC said in a statement: “These decisions have added to the mounting frustration of the private sector, added delays, and continue to hinder the timelines in how businesses are able to operate and prepare for the future.”

 “Businesses suffer and cannot properly plan when the GOB makes policy shifts that have a material impact on how they are to operate without providing a fair and adequate notice period for implementing new policies.”