By Fay Simmons
jsimmons@tribunemedia.net
Attorney General Ryan Pinder revealed that cruise lines wanted a six-month phase-in period for increased passenger taxes.
Speaking at the 2023/2024 Budget debates yesterday, Mr Pinder said that prior to the increased cruise passenger taxes being announced by Prime Minister Philip Davis during his Budget address, a meeting was held between himself, Mr Davis and the president of the Cruise Association. He said that during this conference call, the cruise line representative called for a three-year time period to implement the new passenger fees and the government countered with a six-month timeframe.
He said: “I can speak firsthand with this because I was sitting with the Prime Minister and had a conference call with the president of the Cruise Association, prior to the Budget legislation being tabled in the House of Assembly, advising them that we were making an adjustment to the departure tax.
“They advised they wanted a three-year phase-in on the departure tax. We told them that was unacceptable. And we can give a six-month transition.”
The revised fees in the Passenger Tax Amendment Bill imposes departure tax increases of $5 and $7, respectively. They are equivalent to a 27.8 percent and 38.9 percent rise.
In addition, the Bill will also introduce a tourism environmental levy for every cruise ship passenger arriving or leaving The Bahamas worth $5 per head. And a $2 per head "tourism enhancement levy for every passenger arriving in or leaving The Bahamas".
Combined, these two new levies will add a further $7 in taxes and fees for departing cruise passengers. Depending on whether they exit via Nassau or Freeport, or one of The Bahamas' private islands, this will take the per capita fees and taxes paid to $30 and $32, respectively, representing 67 percent and 77.8 percent jumps.
Mr Pinder also took responsibility for the date error contained within the legislation presented during the Budget presentation and confirmed that the passenger tax wil come in force in January 2024.
He said: "The legislation had the wrong date. It should have had January and not July. And frankly, I take responsibility as the operative minister for drafting legislation.
"The deputy prime minister made this point that it was the wrong date. And again, I take the responsibility for that. Right. I take the responsibility for that as the Attorney General."
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