The Tribune

By NEIL HARTNELL 

Tribune Business Editor 

nhartnell@tribunemedia.net

THE Prime Minister yesterday vowed that the days of The Bahamas serving as “a playground for the elite who....disobey the law and fail to pay their taxes” is over.

Philip Davis KC, in closing the 2024-2025 Budget debate in the House of Assembly, yesterday asserted that wealthy homeowners and boaters will no longer be able to dodge paying due taxes or make minimal contributions to the Public Treasury due to his administration’s enhanced compliance and enforcement efforts.

“There are special interests out there who pay their mouthpieces a lot of money to push narratives about us that do not reflect reality,” the Prime Minister asserted, while calling no names. “They pretend there are new taxes when, really, they are unhappy that businesses are simply being asked to comply with the law, and pay what they owe, same as everyone else. This is a basic principle of fairness.

“These paid talking heads defend people who own million dollar properties who feel they are above paying taxes in The Bahamas, and luxury boat owners who want to enjoy our paradise while making minimal contributions.

“This idea that we are a playground for the elite who get to dictate policies, disobey the law and fail to live up to their tax obligations while reaping all the benefits of living here is just one example of how the status quo has harmed us.”

Referring to when the former Minnis administration altered its real property tax policies, after Lyford Cay and other high- end communities warned they could have a chilling effect on foreign direct investment (FDI) in the real estate sector, Mr Davis said: “We all remember how just one letter from a private community when the FNM was in office got them to alter the planned real property tax rate on multi-million dollar homes.

“That tactic may have worked before, but it won’t work with this administration. We are building a foundation for a more inclusive and fair society where everyone truly pays their fair share.”

Mr Davis also hit out at the Free National Movement (FNM) for opposing his administration’s bid to achieve change in Freeport and at the Grand Bahama Port Authority (GBPA), having demanded that the latter reimburse it for public spending incurred over and above tax revenues generated by the city during the period 2018-2022.

Also seeking to place all the blame on Freeport’s quasi-governmental authority for the island’s economic struggles, he said: “Our fight for prosperity on Grand Bahama will continue with our efforts to completely revamp the arrangement with the Grand Bahama Port Authority, which has stymied growth on the island for decades.

“I caution the members opposite to keep in mind that the people of Grand Bahama will remember who stood with them for a better Grand Bahama, and the people will also remember who served as water boys, carrying water for the Port Authority.

“Fearmongering to try to make Grand Bahamians afraid to challenge the status quo won’t work this time. Those scare tactics are falling on deaf ears as the vast majority of people on the island are hungry for change. And, while we’re on the topic, let’s stop pretending that pushing for improvement is somehow bad for the investment climate,” the Prime Minister continued.

“The way Grand Baha- ma’s economy is set up right now, investors are eagerly anticipating the changes at the Port Authority, too. So, I encourage the side opposite to stand on the side of change, or be remembered as the enemies of progress. Be remembered as the water boys who were on the wrong side of history.

“Because we will not stop pushing for progress on Grand Bahama until the Port Authority does right by the people and all parties can come to an agreement on a solution that serves the best interests of Grand Bahamians.”

Mr Davis also acknowledged that the Government “can’t take on the cost of living and the cost of doing business in The Bahamas without taking on the cost of electricity.

“The impact of our innovative energy reforms will be felt across our islands,” he promised. These energy reforms are central to our efforts to build an economy that is more competitive, more prosperous, more dynamic, and more inclusive, with more paths to security and success for more Bahamians........

“Local small businesses that pay thousands in electrical costs each month may not be able to keep their doors open waiting for a long and slow solution that will only bring about noticeable results years from now.

“In every conversation I have with Bahamian entrepreneurs of every size – from the small corner stores to large corporate enterprises – the consensus is clear: The high cost of electricity is a barrier to starting a business and makes it difficult to generate profits and keep their doors open. We talk a lot about the need to improve the ease of doing business,” the Prime Minister added.

“Well, the cost of electricity and the reliability of the power supply are two of the main inputs considered when countries want to make doing business easier. When we lower the cost and improve the reliability of our power supply, we give Bahamian business owners a better chance at thriving. These businesses are the lifeblood of our economy.

“It is in our best interest to give them every chance at success possible as our policies bring about unprecedented growth within a new Bahamian economy.”