The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

FREEPORT – Grand Bahama Port Authority (GBPA) licensees will be seeking to reclaim all new Customs-related taxes paid to-date in their Judicial Review action against the Government, a top QC said yesterday

Fred Smith confirmed the Grand Bahama Chamber of Commerce has given the go-ahead for a class action-style lawsuit against the Government’s over the 2013-2014 Budget’s new taxes, particul.arly the 1 per cent Customs administrative processing fee.

He added that efforts had been made to convince the Government to withdraw the new taxes, which he alleges are illegal in Freeport.

“This is being done with great reluctance,” Mr Smith said. “The GB Chamber has for many months last year, and up until very recently, engaged the government and the Grand Bahama Port Authority in discussions to try to persuade government to withdraw the new Customs taxes.”

He indicated that Customs Duty exemptions are the bedrock of the Hawksbill Creek Agreement, which allows for duty exemptions until 2054.

“Freeport was built on Customs duty, tax free exemptions. And even though we are a ‘free port,’ the consumption tax still generates hundreds of million dollars in revenue for the Government,” he said.

Mr Smith said there was a provision in the Hawksbill Creek Agreement which states that if the Government’s expenses in the Port Area exceeds its income, then the Port Authority has to pay 125 per cent of that su to government by way of recompense.

“Since 1955, the Government has always made a profit in taxes in Freeport,” he added.

Mr Smith stressed that the Government is “strangling” the Freeport economy instead of creating an environment where businesses can flourish and grow.

He argued that Freeport has been in recession since the storms of 2004, and needs both foreign and Bahamian investors to bring in new businesses.

There are currently some 3,000 business licensees in Freeport.

As part of the case, Mr Smith said they will be claiming a refund of all taxes paid by licensees during 2013 - and continuing - under the new Customs laws.

“I urge all licensees as part of this class action suit to keep careful records of their Customs duty expenditure, so that when the time comes to have an accounting between Customs and every licensee from whom taxes have been illegally extracted, the licensees will be in a position to produce proof of the payment of these taxes,” he said.