The Central Bank of The Bahamas’ Quarterly Economic Review (QER) for the third quarter of 2021 has revealed what government has been touting for weeks, that the country’s revenue collection has improved this year, especially value-added tax (VAT) collection, which improved by $160 million when compared to the same period last year.
According to the QER, total tax receipts improved by $230.3 million to $499.7 million for the third quarter of 2021.
The report explains that those tax receipts comprise 87.2 percent of the government’s total revenue, of which VAT represents 59 percent.
The report states that VAT receipts for the quarter improved to $294.7 million from $134.7 million in the third quarter last year.
The report adds that the country’s deficit narrowed as a result of the improved collections.
“Provisional data on the government’s budgetary operations for the first quarter of FY2021/22 revealed that the deficit narrowed to $153.5 million from $345.1 million in the comparative FY (fiscal year) 2020/21 period,” the document explains.
“Underlying this outcome was an increase in revenue collections, led by a notable rise in value-added tax receipts, largely reflective of the measured pace of recovery in economic activities, following the COVID-19 related downturn.
“In particular, total revenue rose by $271.9 million (90.4 percent) to $572.8 million, overshadowing the $80.3 million (12.4 percent) growth in aggregate expenditure to $726.2 million.”
The report also reveals, though that some taxes underperformed, including stamp taxes on financial and realty transactions, which declined by $3.7 million or 29.8 percent year-on-year, to $8.6 million.
It also reveals a doubling of gaming taxes to $10.5 million, from $5.4 million last year.
“Further, taxes on the use of goods rose by $7.3 million (48.8 percent) to $22.3 million, largely due to gains in general business licenses fees, by $8.5 million to $14.6 million and in marine license activities by, $0.8 million to $1.1 million,” the report states.
“In a partial offset, motor vehicle taxes declined by $1.3 million (21.7 percent) to $4.8 million and company taxes fell by $0.7 million (26.9 percent) to $1.8 million. In terms of the remaining categories, taxes on international trade grew by $34.8 million (43.9 percent) to $113.9 million.”
The country also recognized gains in customs and other import taxes, which increased by $19.4 million to $61.7 million; and departure taxes, which improved from $8.9 million in 2020 to $10.6 million this year, “reflective of the recovery in travel”.
“Similarly, collections from property and export taxes increased by $12.1 million and $6.3 million, respectively; and proceeds from general stamp taxes, by $0.9 million (71.6 percent) to $2.2 million” the bank notes.
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source https://thenassauguardian.com/central-bank-report-reveals-improved-revenue-collection/
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