Tuesday, April 13, 2021

Govt Extends Tax Concessions for Grand Bahama and Abaco to June 2021

The government will extend the tax concessions under the Disaster Reconstruction Authority (Special Economic Recovery Zone) for Abaco and Grand Bahama to June 2021.

Why it matters

  • Many of the provisions were set to expire on December 31, 2020.
  • The local sale and importation of household furniture, furnishings, and appliances will continue to be tax-free.
  • The tax relief measures were designated for Grand Bahama and the Abacos following the catastrophic impact of Hurricane Dorian.

What Minister of State for Finance says

  • Senator Kwasi Thompson said, “To further assist persons and businesses who are still recovering, and are now grappling further with COVID-19, the government has agreed to extend a number of tax relief measures to June 2021.”
  • He noted that the government also recognizes that rebuilding takes time, and the reconstruction of damaged homes continues.
  • Furthermore, the government is extending the opportunity to receive a discount on the VAT payable on the sale of real property for transactions valued up to $500,000.
  • He said the government recognizes as well that vehicles that have been ordered may not arrive in the country by the end of December. The government will honour the current tax concession on replacement vehicles, provided that there is documentary evidence that it has been shipped by December 31, 2020, and provided that it arrives by April 30, 2021.

State of play

  • Government revenues are down by as much as 50 percent, but the government says it is ensuring that it still does as much as possible to cushion the economic blow for islands experiencing hardship.
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