The Tribune

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

THE government is increasing annual boat registration fees while eliminating duty and value-added tax on vessel purchases.

According to an amendment to the Boat Registration Act tabled in the House of Assembly yesterday, annual fees for boats under 15 feet will be $36 if the legislation is passed, up from $30.

Owners of boats between 15 and 25 feet in length will pay $60, up from $50.

Fees for boats between 25 and 50 feet will increase to $120, up from $100, while fees for boats between 50 and 100 feet will increase from $200 to $240.

Owners of boats 100 feet or more will pay an annual fee of $480, up from $400.

For the transfer of registration, the fee will increase from $10 to $100.

Annual payment for boat inspections and master licence fees will also increase.

Prime Minister Philip “Brave” Davis said the increases are part of his administration’s efforts to boost revenue from the marine industry, a sector he said had been underperforming.

“Some of this underperformance could be attributed to bad policy, which we are now correcting,” he said in the House of Assembly yesterday.

“Currently, the combined duty and VAT rate is too onerous in comparison to registering the vessel in the United States, Jamaica or Cayman Islands, so many Bahamian pleasure boat owners are avoiding registering the vessel in The Bahamas and instead just paying the $1,000 cruising permit.”

“In this budget, we are eliminating both the duty and VAT and putting in place an updated fee schedule for the registration of pleasure crafts. This shift will encourage domestic registration of these vessels.”

Mr Davis said his administration has established a maritime revenue task force to bring in more money.

“This would be done in several ways –– adopting new policies which encourage compliance; educating law enforcement agencies on maritime revenue opportunities, and implementing a new compliance strategy in which updated penalties for non-compliance would be an important feature,” he said.

“This would include using technology to properly assess entities which utilise the seaboard for docks, marinas and other purposes.”