NASSAU, BAHAMAS — Prime minister Philip Davis said yesterday that his administration made an "extraordinary" effort to protect Bahamians from any new revenue measures, adding that it was a "deliberate policy choice" that 95 percent of new government revenue in the upcoming fiscal year come from non-Bahamians.
While kicking-off the budget debate in Parliament yesterday Prime Minister Davis noted that recurrent revenue is projected to be $3.316 billion for the 2023/2024 fiscal year and the deficit is expected to be $389.5 million - a significant year-over-year increase in revenue and decrease in the deficit.
"The fact is, we made extraordinary efforts to protect Bahamians from any new revenue measures. Ninety-five of new revenue will come from non-Bahamians," said Davis.
He noted that one example is the adjustment in Departure Tax for cruise visitors from $18 to $23 for departure from Nassau, Freeport and Bimini; a departure tax of $25 from all other islands; and $35 for departure from a private island. The government has also introduced a tourism environmental levy of $5 for each cruise visitor and a $2 levy for tourism enhancement.
The $2 levy, the prime minister noted, would go into a special fund and not the Consolidated Fund.
"Cruise tourism is an important feature of our tourism product but its economic impact has been limited due to concessions provided to cruise ship operators. We are now seeking to address these matters," said Davis.
"As for tax collection — when we talk about $800 million in Real Property Taxes owed, the vast majority of these taxes owed are not owed by your average, everyday Bahamian, as homes under $300,000 do not pay real property tax. There is no crusade.
"Talk to any Bahamian about taxes, the first thing they will say is: instead of raising new taxes, the government should collect all the back taxes on the books and stop people from ducking their tax bills."
Taking a dig at the opposition, Davis declared that "under this administration, everyone must now pay their fair share, including the friends of the FNM."
Davis also highlighted that during its first 20 months, his administration has secured well over $1 billion in new investments.
"How does that stack up to the first 20 months of the previous government? It's hard to remember any investments of note from that period - perhaps because that period was defined by the Oban fiasco, rather than new investment in the country," said Davis.
The Prime Minister noted that government is set to exceed its own revenue target of $2.85 billion for the current fiscal year, with the deficit also improving to $389.5 million, down from $575.4 million.
"Thanks to the progress we've made, we remain on track to have the first-ever budgetary surplus by 2025. This new budget continues where the last budget left off, with a focus on more effective tax administration," said Davis.
Prime Minister Davis noted that his administration lowered the VAT rate, customs duties, increased enforcement on price controls, and introduced new price controls all in an attempt to provide some relief.
Additionally, he noted that government has provided more support to food programmes through social services, provided for salary increases outlined in multiple public sector agreements and allocated funding to the Ministry of Finance for a thorough evaluation of salaries in the public sector to ensure equitable compensation and also increased the national minimum wage.
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