EXCISE duties on vehicles will be based on value rather than engine size as part a wave of new measures aimed at regenerating the Bahamian economy.
The new rules will apply from July 1, when cigarette duty will change to 15c per stick and duty on manufactured spirits will rise from $6 to $8 per gallon and from $11 to $15 per gallon for imported spirits.
Duty levied on fuel for power generation will be removed, Prime Minister Perry Christie told the House of Assembly today as he moved the 2013/2014 Budget Communication.
He said he expected electricity costs to come down by more than six per cent.
Mr Christie announced a range of measures today, saying the Bahamian economy grew by 1.8 per cent in real terms last year, in line with the 1.7 per cent growth registered in 2011, but below the 2.5 per cent rate projected.
First time home owner Stamp Tax exemption will be extended from June 30 to June 30, 2018.
There will be: $2m for new police vehicles; $10m for tourism marketing; $10m for small home repairs; $30m for education; $10m for sporting facilities in the Family Islands.
A dedicated cruise ship will come out of Miami into Bimini; hospitals will be constructed in Cat Island and Eleuthera and there will be $4m for a School of Agriculture in North Andros.
Financial institutions which deal with B$ accounts, with some exceptions, face a new Business Licence Fee of three per cent on gross revenue.
Stamp tax will be applied at 5.0%, rather than 1.5%, when B$ dividends or profits are repatriated out of the Bahamas.
Government entities will be required to pay Business Licence Fees; e-commerce transfers and point of sales payment by Debit Cards will be free.
$1m will be spent on developing a ‘Mardi Gras’ style cultural festival for the Bahamas to take place each Lent, starting in 2015, which could incorporate a cultural village, public processions and song and costume competitions.
“Various groups, such as the Saxons or the Valley Boys, could become corporate entities. These entities, officially in the business of cultural tourism, could sell costumes, including sales online, both here and abroad,” said Mr Christie.
“There will be specific stipulations that a certain percentage of the contents of costumes will be made of straw and sisal. Such stipulations would stimulate and provide a much needed boost to those domestic industries.”
The Passenger Tax Act will be amended so that all departure tax collected by ticketed passengers would be assessed and remitted to the Government; Children under the age of 12 will be given a $300 exemption on return to the Bahamas.
From July 1, customs duty on vehicles under $10,000 will be 65 per cent; over $10,000 but less than $40,000, 75 per cent; over $40,000, 85 per cent.
Duty on electric motor cycles will be reduced from 75 to 65 per cent.
Cigarette duty will be 15c per stick, cigars will add 50c to the current rate while the duty on electronic cigarettes goes from zero to 45 per cent.
The $10 stamp tax levied on customs entries will be axed and a 1 per cent customs processing fee introduced.
A processing fee will be introduced for manifest and other declarations for inbound and outbound aircrafts and vessels.
One per cent of the value of entries submitted to customs will be subject to a minimum of $10 and capped at a maximum of $500.
Duty will also be axed on solar panels, inverters for panels, solar powered air conditioners, bed pads, urinary bags, incubators, isolators and defibrillators.
The PM said that between May and November of 2012 the national unemployment rate fell to 14% from 14.7%.
The current account deficit has widened by approximately one-third to $1.46 billion in 2012.
External reserves contracted by $74.6 million during the year, said the PM.
At December 2012, external reserves stood at $810.2 million. The latest estimate of reserves through May 24 placed balances at $814.3 million.
Mr Christie said the fuel charge assessed by the Bahamas Electricity Corporation rose by over 15 per cent in 2012, to a level of 26.7 cents per kilowatt hour.
Comments
Islandgirl 10 years, 10 months ago
Well, that's some good news. Pertaining to Grand Bahama: the fuel used by the Power Company is already supposedly duty free, yet the fees assessed us every three weeks is astronomical, a blatant assault on one's wallet and livelihood. This in turn has sunk many business, and has made life absolutely miserable for many here. How will The Ministry of Grand Bahama use this to our advantage, and can we have an independent review by URCA, not the GBPA, to find out how on Earth these people are allowed to get away with this atrocity? I personally am all for the duty free solar powered electronics, ANYTHING to give me relief from a monthly power bill that is more than my mortgage!
jackflash 10 years, 10 months ago
I didn't think that they would let you put solar panels on your roof over in Freeport.
Here in Abaco we have solar everywhere.
The_Oracle 10 years, 10 months ago
The Grand Bahama Port Authority Solar/Alt energy position is Yes we are Solar friendly, No, you cannot grid tie, No you cannot use it as your primary power source. Yes, you can use it as a standby Generating System! Being that the Port Authority charges the power co. a "thru put/generation tax" on every KWH generated (or Sold) (which used to be a tax per barrel of fuel used charge) They don't want solar /Alt energy to diminish their revenue, which it would. If the Government would simply declare Solar to be allowable, subject to accepted Global standards for Electrical operation/connection/safety inspection, Solar will take off here, But they seem pre-occupied with how they will make money from it, and can't seem to decide which foreign company they will allow to do it (for BEC use only), On Crown land of course! Consultants with special interest abound. Tis always the way......
Islandgirl 10 years, 10 months ago
Well then, here is a good task for Dr. Darville, the Minister for Grand Bahama. We have great infrastructure. The cost of electricity here is a direct deterrent to business success and attracting both foreign and domestic investors. We have all suffered enough, and the Port has MORE THAN made a profit (a killing, really) on their initial investment here. During your contribution to the debate, sir, please bring up the points we have mentioned here, and make a strong case for the government declaring Solar to be allowable, and as a primary source of power generation. We desperately need businesses, jobs, and a sustainable, humane lifestyle that is GREATLY threatened by monstrous electricity fees. I hold my breath every time I open my bill, this despite turning off breakers everyday and having not turned on my air condition in more than four years. We need help! I am sure Obie, Neko, Peter and Moss will back you up. How can you all just sit there and allow this to happen? You have the power. DO SOMETHING!!!
John 10 years, 10 months ago
CIGARETTES will be charged a duty rate of 15 cents per stick or $3.00 a pack? Meaning the price of cigarettes willgo to about $6.00. AND the duty on cigars will only increase by 50 cents per stick. So while the price of backwoods and black and milds, the cheaper brands (that poor people smoke) will increase by almost 50%,while the duty on a $20.00 Cuban cigar will only increase by less than $1.00. ANd the persons who smoke bedes that now sell for $2.00 for a pack of 20 will have a $3.00 tax added, so bedes will now cost at least $4.50 to $5.50 a pack. ANd for those who drink imported booze, the price will also go up as there will be a 33% increase in the tax. why drink and drive when you can smoke...what..and fly? wow the cost of living!
ThisIsOurs 10 years, 10 months ago
Where's the new equipment for the Met Office?
John 10 years, 10 months ago
Hospitals in Eleuthrea and Cat Island..$10 million for sporting facilities in the family islands.. Plus an Agriculture school and other spending..good gesture..invest inthe Family Islands..but this cannot be a one-time spend. Bring the major family islands up to par with New Providence and Grand Bahamas and reduce the crowding in New Providence. With the advent of technology, many government filing and document processing offices can be located on a Family Island. So can call processing for btc and some of Cable Bahamas' operations. Offer lower industrial electricity costs on selected family islands and/or allow companies that move significant operations to operate 90% on solar or renewable energy.
HarryWyckoff 10 years, 10 months ago
Wow. So now we will see an influx of yet more poorly maintained, old, damaged cars as people go for the cheapest option? While people wanting to purchase clean, green hybrids get screwed?
This government is utterly clueless!
BahamaBoy 10 years, 10 months ago
It seems you're utterly clueless as well! Duty on hybrids or electric vehicles is 25%!!
BahamaBoy 10 years, 10 months ago
http://www.bahamas.gov.bs/wps/wcm/con...">http://www.bahamas.gov.bs/wps/wcm/con...
Scroll to Vehicles (Hybrids or Electric )-> 25%
I'm sure to defend ignorance you will not concede or wiggle some other excuse or equation!
john33xyz 10 years, 10 months ago
Still no duty on pampers and baby food? An economic growth rate of less than 2% in reality (and 2.5% they wished for) is WAY LESS than the population growth rate.
The economy cannot keep up with the delivery room at PMH.
Increase the duty, and improve our quality of life. Or do we just want quantity and not quality?
The_Oracle 10 years, 10 months ago
I believe that would be $3.00 ON TOP OF the current 200%+ duty/tax on Cigarettes, making a pack around $9!
of course, the rubber hits the road when all of this kicks in, as his "lapses" into the local vernacular and the generalities of his statements leave much to be questioned.
The_Oracle 10 years, 10 months ago
I believe Dr. Darville has already been wined and dined/neutralized by the Port Authority, and will not do a damn thing except accept their invites and goobersmooch. The insidious nature of the Port coupled with weak Governance of the country make any change highly unlikely. As to the Budget Communication, a simple game of cups.
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