By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
Opposition Finance spokesman and East Grand Bahama yesterday said that the $315m in lost taxes to the Government as a result of the delayed Baha Mar opening only further underscored the impact of government’s intervention in the resort’s receivership, telling this newspaper: “All is not well”.
It is estimated that the government has lost $315m in tax revenue from the beleaguered Baha Mar resort due its opening delays and the court appointed receivership process, according to an economic impact report of the $3.5 billion property. Of this figure, the government has lost an estimated $25m in stamp conveyance at a rate of 10 per cent; more than $30m in casino taxes on winnings; $16m in business license fees; $33m in National Insurance Board contributions; $13m in departure tax; $114m in import duty and $81m in occupancy tax/value added tax, among other losses. The report also estimates that $451m in wages and salaries for direct and indirect workers has been lost, as well as a $48m loss in government utility payments and a gross domestic product (GDP) loss of $1.9m.
“We can’t say with any certainty whether the project would have been opened by now if it had gone through the bankruptcy process but we do know that would have been the best commercial possibility for it to had opened in a timely fashion. The whole claim about sovereignty was political nonsense. As a result of this government intervention the whole deal is much more complicated, it now involves politics and it invokes government. Whenever you inject government into a commercial matter it begins to cloud the business decision that have to be made,” said Mr Turnquest.
“With the extended delay we now see the end result which is this $315 million that has been missed unfortunately. With the government incurring the kind of debt that it is; the economy underperforming as it is and jobs being lost as they are this is a significant downstream effect. It is regrettable that Baha Mar is not open and we have not been able to see our way clear to have the project restarted with a current or new developer and the effect it has on the economy overall. This recent development with Sandals and what will be lost with that over the next couples of months will also have an impact. We are in a situation where our economy is not performing well. Contrary to the government story, all is not well neither in the tourism sector or the economy overall,” said Turnquest.
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