Deputy Prime Minister and Minister of Finance the Hon. K. Peter Turnquest stated that employment retention continues to be a priority focus, and a core component of this Government’s fiscal and economic plan.

“The Government rolled out the Tax Credit and Deferral Employee Retention program at the Department of Inland Revenue which, in its first phase, allowed businesses with a turnover of $3 million or more to receive a mix of VAT and Business Licence credits and deferrals for up to three months,” DPM Turnquest said as he presented his Ministry of Finance COVID-19 Update Communication in the House of Assembly, Wednesday, September 9, 2020.

He explained that in the second phase, which runs until October 2020, the Department of Inland Revenue extended the application to all qualified VAT registrants, which meant that once a company had a turnover of $100,000 or more, it could apply to receive these credits and deferrals.

“To date, some 80 businesses were approved under this program and have received some $22.9 million in tax credits and deferrals.

“This has translated into saving some 9,004 jobs within the domestic economy, as companies are required to spend the amount granted in credits and deferrals on payroll expenses.”

The DPM stated that further, the Government made the conscious decision as part of its commitment to employment retention to maintain the employment of civil servants and persons employed in state owned enterprises.

He stressed that strengthening the domestic economy by supporting small businesses continues to be a priority focus, and a core component of our fiscal and economic plan.

DPM Turnquest noted that in the FY2020/21 budget, the Government has allocated some $55 million to radically expand its support for Bahamian entrepreneurs and small business – in large part to assist them through this most challenging economic period.

He said, “As of June 30, however, the Government disbursed $39 million to SBDC for its business continuity and other programs. Approximately 545 small businesses and entrepreneurs benefited directly from the SBDC’s COVID-19 business continuity initiative.... Collectively, these businesses represented 4,304 jobs, which were protected because businesses were able to use the proceeds to support their operations, and to help meet payroll.”