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PM says Gov't on pace to hit balanced Budget

By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

The Prime Minister yesterday asserted that the Government remains on track to achieve a fiscal surplus and balanced Budget in 2024-2025, adding: "Revenues will continue to go up, and deficits will continue to go down."

Closing the 2023-2024 Budget debate, Mr Davis defended the increased departure taxes for cruise ship passengers and maintained that visitors must contribute to the conservation of The Bahamas' natural resources. He voiced confidence that The Bahamas' tourism industry will not suffer as a result of the tax levies and will remain among the Caribbean's leaders.

He said “ All the revenue measures.. will give us better returns on our in-demand tourism product while still maintaining prices that are competitive regionally. In fact, we are confident that our tourism product will remain the strongest in the region. And we stand firmly by our conviction that those who visit and travel through our beautiful waters must play at least some role in preserving our beautiful marine environment.”

Mr Davis explained that the new $2 tourism enhancement levy will assist in the revival of downtown Nassau, including the Tourism Development Centre (TDC)’s business incubation centre initiative. He added that the new cruise ship passenger tax will be introduced on January 1, 2024, while the tourism levy and departure tax increase will be implemented at the same time.

“We have adjusted the departure tax for cruise passengers upwards by $5, we have added a tourism environmental levy of $5 for each cruise visitor and a $2 levy for all travellers for tourism enhancement," he said.

“Tourism enhancement includes critical projects like cleaning up Bay Street, business incubation centres for tourism-related businesses across our islands, cleaning up monuments, the Junkanoo Beach Village restoration, and more. The sustainability levy for cruise ship passengers will be introduced as of July 1, 2023, and the departure tax increase and tourism levy will take effect on January 1, 2024.”

The Prime Minister maintained that the Government's tax collection efforts will not impact most Bahamians as they are focused on collecting outstanding taxes and implementing new revenue streams that will not affect most of the population.

He said “We made a very deliberate choice to raise much-needed revenue through the more efficient collection of existing taxes, while also introducing or raising a very small number of targeted fees that do not impact most Bahamians.

“The side opposite can try to convince the people that a cruise passenger fee, a yacht fee, a tourism enhancement fee, and a foreign work permit fee add up to some huge new burden for the people – but they’re going to continue losing their war with reality.”

Mr Davis continued to fire back at the Opposition, questioning if they opposed enforcing tax laws and maintained that the Department of Inland Revenue’s Revenue Large Taxpayer Unit is focused on firms that make over $5 million annually.

He said: “They also have very strenuous objections to the Revenue Enhancement Unit and the Large Taxpayer Unit, which focus on enforcing compliance with existing laws. We are all aware that, unfortunately, there are those who want to reap the benefits of our nation while contributing the least amount possible. Why is the side opposite objecting to enforcing the laws of The Commonwealth of The Bahamas?”

“The Large Taxpayer Unit focuses on compliance for businesses making over $5m per year. Should such businesses not be asked to pay the taxes they owe?” Mr Davis defended the new tax collection efforts and added that individuals that oppose collection efforts on large firms are exposing ‘who they are’.

He said: “This is a nation of laws, and we intend to enforce those laws. Those who suggest the Government should not make efforts to collect taxes on the biggest companies or the most expensive properties – they’re telling us everything we need to know about who they are – and who they’re for.”

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