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2021/2022 BUDGET: PM announces employment incentive programme

Wed, May 26th 2021, 01:27 PM
Finance Politics Tribune Stories

PRIME Minister Dr Hubert Minnis has announced the upcoming launch of an employment incentive programme that will allow businesses to apply for a VAT tax credit to cover the salaries of up to ten new employees brought onto their payroll as of July 1.

 

He said this credit will be good for a salary of up to $400 per week per employee. Eligible businesses will have to follow certain compliance rules and be in good standing with the National Insurance Board. He anticipates that up to 250 businesses will take part and this will cost the government about $40m in foregone revenue.
#He made the revelation during his 2021/2022 Budget Communication in the House of Assembly.
#• Dr Minnis also announced plans to level the playing field for small and medium sized businesses who are faced with prohibitive startup costs.
#He said Bahamian businesses will be able to apply for and obtain duty concessions on items needed to start or expand their businesses including on the first stock of inventory. He said any Bahamian entrepreneur or small business with an annual turnover of less than $5m will get the same treatment.
#• The prime minister also announced plans to create a special economic zone in the southern islands to spur “immediate economic activity” in these islands through an amended Family Island Encouragement Act.
#Residents and businesses on these islands or people investing in these islands will qualify for duty and VAT concessions on materials they will need to build a house or start/expand a business. Qualifying islands include Ragged Island, San Salvador, Rum Cay, Cat Island, Long Island, Mayaguana, Inagua, Crooked Island, Long Cay and Andros.
#• Dr Minnis said $10m will be allocated to continue the fight for health and safety of Bahamians amid the COVID-19 pandemic. This funding will be used to purchase PPE.
#He added that the government is also moving swiftly to invest $100m in hospital upgrades with $70m targeted for PMH and $19m for upgrades to Rand Memorial Hospital in Grand Bahama.
#• The Prime Minister announced a range of impending duty reductions and elimination for some items in the upcoming fiscal year, including the elimination of duty from disinfectant; the elimination of duty from a range of sporting equipment and apparatus; reduction in duty on a number of building supplies; and a reduction in duty on electrical wires. He also said VAT will be removed from diapers and sanitary pads/tampons.

He said this credit will be good for a salary of up to $400 per week per employee. Eligible businesses will have to follow certain compliance rules and be in good standing with the National Insurance Board. He anticipates that up to 250 businesses will take part and this will cost the government about $40m in foregone revenue.

He made the revelation during his 2021/2022 Budget Communication in the House of Assembly.

• Dr Minnis also announced plans to level the playing field for small and medium sized businesses who are faced with prohibitive startup costs.
#He said Bahamian businesses will be able to apply for and obtain duty concessions on items needed to start or expand their businesses including on the first stock of inventory. He said any Bahamian entrepreneur or small business with an annual turnover of less than $5m will get the same treatment.

• The prime minister also announced plans to create a special economic zone in the southern islands to spur “immediate economic activity” in these islands through an amended Family Island Encouragement Act.
#Residents and businesses on these islands or people investing in these islands will qualify for duty and VAT concessions on materials they will need to build a house or start/expand a business. Qualifying islands include Ragged Island, San Salvador, Rum Cay, Cat Island, Long Island, Mayaguana, Inagua, Crooked Island, Long Cay and Andros.

• Dr Minnis said $10m will be allocated to continue the fight for health and safety of Bahamians amid the COVID-19 pandemic. This funding will be used to purchase PPE.

He added that the government is also moving swiftly to invest $100m in hospital upgrades with $70m targeted for PMH and $19m for upgrades to Rand Memorial Hospital in Grand Bahama.

• The Prime Minister announced a range of impending duty reductions and elimination for some items in the upcoming fiscal year, including the elimination of duty from disinfectant; the elimination of duty from a range of sporting equipment and apparatus; reduction in duty on a number of building supplies; and a reduction in duty on electrical wires. He also said VAT will be removed from diapers and sanitary pads/tampons.

 

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