The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

THE Government was yesterday urged to “crack down on the real tax evaders” in the maritime industry as opposed to continually hiking fees on the same compliant businesses that always pay.

Andoni Lisgaris, the Bahamas Excursion Operators Association’s (BEOA) president, speaking after up to 75 percent cuts in boat registration fees were passed in the House of Assembly, said his real concern lay not with this levy but the broader need to ensure equitable taxation for all sector players.

“To be honest, the registration fees are just a drop in the bucket compared to all the other taxes we pay,” he told Tribune Business. “They [the Government] don’t want to go out and collect the taxes they have implemented like VAT. They just want to go out there and raise other fees.

“Instead of raising my registration fees, why not go out there and crack down on the real tax evaders, the VAT evaders? That’s where the real taxes are. What else do you want from me?... That’s the issue for me.”

Mr Lisgaris said it was possible “to stand on the dock in the harbour with a cup of coffee”, watch the boats carrying visitors out on tours and excursions, look at their numbers and see which ones are still operating as private vessels. “You could see for yourself some of those boats are non-compliant and they never get stopped,” he added.

“You don’t need to raise taxes; just go collect what you need and you will be fine. That’s what I want. My thing is that VAT has been around since 2015. It’s nine years, almost a decade. Some of these businesses have been in business way before VAT was implemented and are still not VAT registered. It’s been nine years.

“I think you can go out there, make some calls, see who’s registered and not registered, and go from there. That’s my position right now.” The House of Assembly yesterday passed the revised fees, representing changes to those unveiled just ten months ago with the 2023-2024 Budget, through the Boat Registration (Amendment) Bill 2024 and the Water Skiing and Motor Boat Control (Amendment) Bill 2024.

Both went through their second and third readings in the House, with the Government likely keen to have them passed and gazzetted before the deadline for private vessel registration is met at end-March. Paul Maillis, the National Fisheries Association’s (NFA) secretary, described the passage of both Bills as “a bittersweet moment” for the industry.

While the fisheries industry was happy that it has been carved out, and given its own largely reduced first-time and renewal boat registration fees, he explained that the sector remained concerned about the impact the hikes will have on private boat owners who use their vessels for non-commercial purposes - especially in the Family Islands.

“It’s a bittersweet moment,” Mr Maillis explained. “On one hand the commercial fishermen are happy a concession was made to them that is more reasonable and acceptable in the form of an increased fee. But, on the other hand, there’s something to be said about how the recreational industry has been handled in terms of how high the fees are for boat owners who are not commercial fishermen.

“It’s still sad they have to pay such high fees bearing in mind the diversity of Bahamians with different financial backgrounds who live on the sea, utilise the sea for every day economic activity and subsistence activity.” Mr Maillis said this included Family Island residents “who all depend on their boats, and don’t use their boats for commercial fishing but subsistence, transportation and semi-commercial activity”.

He added: “The way the registration requirements are laid out, it puts a second homeowner with a 28-foot vessel and three 300 horse power engines to go have fun on the ocean on the same footing as a 20-foot Carolina skiff with a 60 horse power engine that is used by an old man in Kemp’s Bay to catch snapper.

“It’s very unfortunate.We have spoken to hundreds of fishermen and people across the country reacting to the prospect that their little boats, or reasonable-size boats, have gone up so much. One example is sailing boats for regattas. They are very long, and go into the category that is 30 feet to 40 feet long.

“They have no commercial value. They have cultural value, and are going into the category of boat that costs thousands of dollars to renew every year. It’s very, very frustrating that the economic value, the cultural value is not taken into consideration, and Bahamian ownership is not taken into consideration,” Mr Maillis continued.

“While we’re happy that commercial fishing was made provision for, it’s a bitter pill to swallow for every day Bahamians.” The Boat Registration (Amendment) Bill contained several wrinkles compared to the version introduced last July as it created several new boat length categories.

For example, persons bringing in a new boat that is 19 feet or less in length will now pay a first-time registration fee of $700 as opposed to the previous $1,000 - a 30 percent cut. However, the Government has now split the next vessel size category - 20 feet to 39 feet - in two.

This means that while owners of boats between 20-28 feet will enjoy a $900 first-time registration fee reduction, as it drops from $3,000 to $2,100, those in the 29 feet to 39 feet bracket will pay $3,500. That latter figure represents a $500 increase on what they would have paid under the previous structure.

The same applies to annual registration renewal fees, with the 29 feet to 39 feet category now paying $860 as opposed to the previous $700. Kwasi Thompson, Opposition finance spokesman, yesterday read in the House of Assembly the concerns that fishermen have with the new fees and associated boat inspection regime.

“It appears that they will bite off more than they can chew, and will need to increase the fees in order to pay enough staff to perform the administrative duties associated with these amendments,” was one opinion cited by the east Grand Bahama MP.

Another read: “The fees are quite high compared to what was previously in place. The requirements listed are extreme. Annual survey, maintenance records, crew training and so on. These are unreasonable requirements. Surveys are expensive. Most crew have no formal training. Maintenance records are non-existent. While I understand the approach, this is entirely impractical.”

Others, according to Mr Thompson, stated: “There is no list provided for requirements that need to be met. Only states that they will determine if a vessel is seaworthy. Vague at best. Lots of options to increase fines, but no data on requirements or emphasis on safety. They appear to be looking at the easiest way to increase revenue with the least amount of work.”

“What passes for seaworthy?” another fisherman purportedly said. “Where is the basic list of safety requirements for registration? Annual inspection; this means that an officer of the Port Department will have to travel to each boat.... Nationwide! Nobody can bring their boats to the Port Department. This is not like driving your car to an inspection centre for road traffic.”

“Changes are needed, but should be implemented over time with consultation from the private sector who actually has a handle on the boating community. More than 50 percent of boats get registered once, and never again” one said.