The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Abaco’s Chamber of Commerce president yesterday said it was “absolutely critical” for the government to extend the Hurricane Dorian tax breaks due to expire on June 30.

Ken Hutton told Tribune Business: It is critical we extend it. Absolutely critical. The main reason is that a lot of the work that’s being done has been severely hampered by the evacuation by all of the NGOs (non-governmental organisations), so that work has been stalled.

“Abaco is certainly not in a position to continue regular economic activity. Central Abaco does not have power or water still. There are very, very few operational businesses right now. People are still trying to finish getting their homes in some livable condition. I would hope that the order is extended further.”

K Peter Turnquest, deputy prime minister, said the issue of whether to extend the Disaster Reconstruction Authority (Special Economic Recovery Zone) Order, and its multiple tax breaks, will likely be dealt with in the upcoming 2020-2021 Budget that is due to be presented on May 2027.

The order effectively transformed Abaco and Grand Bahama into a VAT-free zone for six to seven months, with imported goods and materials treated as zero-rated. Customs duties and excise tax was also waived, as were business licence fees provided certain conditions were met. Real property tax breaks, and discounts to VAT payable on property sales, are also on offer.

Told of Mr Turnquest’s response, Mr Hutton told Tribune Business: “The minister is a pretty sharp guy, and it’s pretty obvious that Abaco is still in dire straits and needs all of the help it can get at least for the foreseeable future.”