St. Anne’s Member of Parliament Brent Symonette, who is also the former minister of financial services, trade, industry and immigration, suggested yesterday that the government remove customs duty on lower-end building materials and just apply a flat value-added tax (VAT) rate, so that the prime minister’s housing plan can benefit a broader segment of potential homeowners.
Symonette’s comments came as parliamentarians debated a resolution for the development of a subdivision for young Bahamian professionals in the Prospect Ridge area in western New Providence.
The development allows the applicants who would be approved to purchase the significantly reduced lots to also purchase building materials duty free, which has prompted many to call the project unfair and discriminatory toward other Bahamians who may not be able to purchase one of those specific lots.
Symonette suggested that there are many ways the government could make home ownership attainable for more Bahamians through particular policy changes.
“In terms of duty free, the budget’s coming up, the revenue in this country has gone virtually sideways, let’s look at the costs for the duty on building supplies. They’re about 15 percent. Let’s look at making those zero for certain types of material. So ordinary shingles? Fine, zero, for high-class shingles or whatever, or let’s say marble as opposed to tile, one can be zero and maybe keep the other. Or move completely to VAT, so therefore this issue that we’re giving duty free to these houses doesn’t become an issue of preference to just the 83 acres, it becomes a benefit for all Bahamians who want to build their home, provided that they are Bahamian first-time homeowners,” he said during his contribution to debate.
The prime minister has said that the government will waive customs duty on all building materials and appliances for homes within the development, which will feature walking paths, two parks, a community center, swimming pool and will be eco-friendly with minimal change to the existing topography of the land.
Approved applicants have two years to build on their lots, during which time they will not be required to pay stamp tax and will be exempted from paying real property tax.
Speaking to the measures, Symonette continued, “So for instance like zero stamp tax on mortgages, there’s already a program in place and first-time homeowners under $250,000 do not pay certain amounts of fees. That’s already there for everyone who wants it. Let’s just remind the public that they can go and get these. Then there are some laws that we haven’t updated for a long time. When my wife and I bought our house, more than 40 years ago, it was $210,000.
“The subdivision I bought in, you can’t get the lot today for $210,000, so maybe the government needs to look at the ceiling for real property tax. Instead of $250,000 let’s make it $500,000 for two years or three years. Because number one, the middle income people in this, a lot of people in this country, are suffering so let’s give them the perks and the benefits of not having to pay real property tax on $500,000.”
The lots, which will be available this summer for purchase, will cost $40,000 for residential and $50,000 for commercial or multifamily lots.
The prime minister said the properties are valued at least $150,000.
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