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Gov’t awaits revenue ‘uptick’ on cruise tax

By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

The Ministry of Finance’s top official says the Government’s revenues are on target with an “uptick” anticipated in the 2023-2024 fiscal year’s second half due to the hike in cruise visitor departure taxes.

Simon Wilson, the financial secretary, said there was “no shortfall” in revenue due to the departure tax increase which is set to take effect from January 1, 2024, in time for the fiscal year’s second half.

He added: “This year we are on track in with revenue in comparison to last year. You know, the big part of our revenue for this year was in the second half of the year when we increased the departure taxes on cruise ships.

“We can see an uptick in revenue between the period of January to June because of the increase in departure tax for cruise ships. So this year there is no shortfall….” The Government is aiming to near-triple revenues earned from departing cruise passengers to $145m in the 2023-2024 Budget year via a series of new and increased fees.

Revenue estimates for the fiscal year revealed the Davis administration is seeking to increase “sea departure taxes” from $50.642m via a combination of increasing the $18 per passenger departure tax to $23 for cruise passengers leaving New Providence or Grand Bahama and $25 per head for all those who exit “by sea from a private island not visiting any other port in The Bahamas”.

The Government also introduced a $5 tourism environmental levy and a $2 tourism enhancement levy for each cruise ship passenger. The new fees and taxes will be applied to every passenger that arrives to The Bahamas after January 1, 2024.

Mr Wilson also described Customs’ Exempt app, which allows incoming arrivals to file declarations and pay due taxes before they arrive in the country, as a “success story” that has increased revenues generated at the airport by 90 percent.

He said: “The Customs App is a success story actually. So we’ve seen a 90 percent increase in Customs revenue from the airport since the app has been introduced.”

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