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.”
Minnis continued, “The designation as a special economic zone also provides concessions on business license payable and on real property tax for qualifying individuals. Included in this are concessions and discounts for VAT on conveyances, with zero VAT payable by Bahamians on transactions under $500,000 and with discounted VAT for non-Bahamians under that same threshold. These concessions will last for two years and are intended to be a catalyst for accelerated economic activity in the southern islands by prospective investors, as well as Bahamians who may be looking to build or buy a home in those islands, which is the very ambition of Accelerate Bahamas.”
A similar allowance is being made available on Abaco and Grand Bahama, where, for two years, the government intends to eliminate VAT on conveyances for properties under $250,000 for Bahamians and a discounted rate for foreigners, to encourage persons to invest in buying properties and homes on those islands.
“Again, under the Accelerate Bahamas Plan, we want to incentivize persons to move with urgency with their investment plans. Not only will this spur commercial activity, it will make these transactions more affordable for ordinary Bahamians,” the prime minister said.
In January, Cabinet approved the extension of the SERZ relief order for Grand Bahama and Abaco to the end of June.
The SERZ Extension Order provided tax relief on the local sale and importation of construction supplies and a zero rating of construction services.
The post Govt to extend economic zones for GB, Abaco and now southern islands appeared first on The Nassau Guardian.
source https://thenassauguardian.com/govt-to-extend-economic-zones-for-gb-abaco-and-now-southern-islands/
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