Welcome to Bahamas Local, Your Bahamas Online Search Engine

Govt to extend economic zones for GB, Abaco and now southern islands

Thu, May 27th 2021, 08:29 AM
Education Public Works/Infrastructure Nassau Guardian Stories

In addition to extending the special economic recovery zone (SERZ) relief order for Grand Bahama and Abaco – which are still rebuilding after Hurricane Dorian – the government is also expanding the special economic zones to include most of the southern islands.

Prime Minister and Minister of Finance Dr. Hubert Minnis announced yesterday that the current relief order for Grand Bahama and Abaco, which was due to expire on June 30, would be extended to December 31.
“We appreciate that the reconstruction efforts in Abaco and Grand Bahama are continuing apace and that progress has been limited by labor shortages and even a supplies shortage as typical supply chain operations have been disrupted because of the pandemic,” he said while delivering the 2021/2022 annual budget communication in the House of Assembly yesterday.
“To continue to support the reconstruction efforts in Abaco and Grand Bahama, we are extending the current relief order, known as the SERZ order, to the end of December 2021. This order provides tax relief for the full suite of construction-related supplies and activities and it will go a long way in supporting the full restoration of the impacted communities.”
Minnis yesterday outlined the Accelerate Bahamas Recovery Plan, which he said would boost economic growth and continue to support the most vulnerable in the country. He said a part of that plan includes the establishment of a special economic zone for islands where the pace of consistent economic development has been behind that of the rest of the country.
For a period of two years, Ragged Island, San Salvador, Rum Cay, Cat Island, Long Island, Mayaguana, Inagua, Crooked Island, Acklins, Long Cay and Andros will be designated special economic zones and will be provided discounted value-added tax (VAT) on certain services.
“It is to spur immediate economic activity in these islands and to encourage persons to invest in homes and businesses in these islands,” the prime minister said.
“Through the provisions of an amended Family Island Development Encouragement Act (FIDEA), residents and businesses on these islands – or investing in these islands – will qualify for both duty and VAT concessions on the full range of materials they will need to build or renovate a house or to start or expand a business.”

Prime Minister and Minister of Finance Dr. Hubert Minnis announced yesterday that the current relief order for Grand Bahama and Abaco, which was due to expire on June 30, would be extended to December 31.

“We appreciate that the reconstruction efforts in Abaco and Grand Bahama are continuing apace and that progress has been limited by labor shortages and even a supplies shortage as typical supply chain operations have been disrupted because of the pandemic,” he said while delivering the 2021/2022 annual budget communication in the House of Assembly yesterday.

“To continue to support the reconstruction efforts in Abaco and Grand Bahama, we are extending the current relief order, known as the SERZ order, to the end of December 2021. This order provides tax relief for the full suite of construction-related supplies and activities and it will go a long way in supporting the full restoration of the impacted communities.”

Minnis yesterday outlined the Accelerate Bahamas Recovery Plan, which he said would boost economic growth and continue to support the most vulnerable in the country. He said a part of that plan includes the establishment of a special economic zone for islands where the pace of consistent economic development has been behind that of the rest of the country.

For a period of two years, Ragged Island, San Salvador, Rum Cay, Cat Island, Long Island, Mayaguana, Inagua, Crooked Island, Acklins, Long Cay and Andros will be designated special economic zones and will be provided discounted value-added tax (VAT) on certain services.

“It is to spur immediate economic activity in these islands and to encourage persons to invest in homes and businesses in these islands,” the prime minister said.

“Through the provisions of an amended Family Island Development Encouragement Act (FIDEA), residents and businesses on these islands – or investing in these islands – will qualify for both duty and VAT concessions on the full range of materials they will need to build or renovate a house or to start or expand a business.”

Click here to read more at The Nassau Guardian

 Sponsored Ads