MINISTER of Economic Affairs and leader of government business in the Senate Michael Halkitis speaks during a media briefing at the Office of The Prime Minister on Friday. Photo: Dante Carrer
By LYNAIRE MUNNINGS
Tribune Staff Reporter
lmunnings@tribunemedia.net
ECONOMIC Affairs Minister Michael Halkitis said the Davis administration discontinued the Economic Empowerment Zones programme, which provided some tax exemptions to inner city residents and businesses, because it was not achieving its objectives.
Former Prime Minister Dr Hubert Minnis, who established what was known as the Over-the-Hill programme, has repeatedly noted his concern about the government cancelling the initiative.
Dr Minnis claimed that many employees and businesses were affected by the cancellation. “When we were the government, they used to bombard us every other day about expanding it,” he said last week.
During a press conference at the Office of the Prime Minister on Friday, Mr Halkitis responded: “I guess the intention was to help people to develop their properties, but what we found was that people who by large living in the area if they owned the property at all, did not have the financial wherewithal to say make an investment.”
So you had one or two large businesses come in and take advantage of investment and you can see some of them if you cruise over the hill. In certain areas of Over-the-Hill you can see some big businesses that were able to come in and take advantage of the tax-free incentive. So we felt that that was not achieving its intended consequence.”
He said not all parts of the programme have been scrapped. He said businesses in the zones earning $5m or less can still apply for a trade certificate that waives licence fees and allows them to import one vehicle without paying customs duties or other taxes.
He said: “So sometimes it might be a useful political tool to beat us with, but you have to be able to look at what was the intended consequence.”
“What did you intend to achieve? Did it achieve those intended outcomes? And is there a better alternative?”
Launched in November 2018, the Economic Empowerment Zones initially targeted residents of Bain and Grants Town and Centreville, but was extended to the St Barnabas and Englerston constituencies.
The programme allowed exemptions on real property tax, business licence tax, custom duties on materials necessary for constructing, equipping, and completing buildings, excise taxes, and stamp duty taxes.
Critics, however, said the programme did not address the acute needs of residents in the area.
Comments
TalRussell 9 months ago
Could it be --- Vehicles', Boat's ,Equipments' Furnitures', Lumbers', Etc, Etc, were imported into The Colony. under customs taxes exemptions by individuals stationed abroad; particularly those currently and formerly stationed at diplomatic and consular offices. --- Yes?
John 9 months ago
When a country is under seige there are tell tale signs to look for. The media becomes very negative in their reporting and makes special effort to ensure 90 percent of their headlines are negative. Likewise the front page stories. Nothing positive. The power and electricity supply. When there are no power outages or brown outs, the cost of electricity is so high that the average citizen can’t afford it. Last year some people saw their light bills double and triple. The communications system. Right now bot Aliv and BTC are operating sub par. BTC is a disgrace. Consumers are waiting up to six months to get service restored to land services. And they try to get consumers to pay for the time the service was out. Both BTC and Aliv consumers bare seeing their data disappear without reasonable explanation. So like their BPL bills they are paying double and triple for their phone service . In some areas these companies seem to have slowed down internet service and weaken the signal while spreading up the service on cellphones. So while consumers are at home or at work they are consuming data when they think they are in Wi fi. The selection of phone devices in both companies is wanting, Now go through other situations like education, health care Athena condition of the roads government services. While the national debt and corresponding deficit are increasing. So eventually braced will increase again and the returns you get for your tax dollars continue to decrease
killemwitdakno 8 months, 3 weeks ago
Wasn't that the point to attract them in those areas? What's then the point of trying to buy GBPA? Failure here proves gov't would be a failure there.
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