Monday, February 6, 2023

Extension of VAT and Duty Free Concessions for GB and Abaco

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Minister of State for Finance and for Grand Bahama, Kwasi Thompson announced that Grand Bahama and Abaco residents wishing to replace their motor vehicles that were destroyed during Hurricane Dorian, are still able to do so under the VAT and Duty-free concessions.

However, those vehicles will have to be purchased before January 31, 2021. This is an extension to the concession, which expired on December 31st, 2020.

Why it matters

In the aftermath of the devastating Hurricane Dorian in September of 2019, the government designated the islands of Grand Bahama and Abaco, as ‘Special Economic Recovery Zones.’

Within those zones, residents were allowed duty-free and VAT-free concessions, as well as business license concessions.

Other concessions were extended due to COVID-19 pandemic for those individuals who were unable to take advantage of the concessions previously. The extension was set to expire on December 31, 2020. However, certain aspects of the concessions were extended beyond December 31, 2020 for building materials, equipment and furniture.

What he says

“We have listened to the public and we’ve taken the further decision that if you purchase your vehicles on or before January 31st, 2021 and that vehicle arrives in the Bahamas by April 2021, you will be able to take advantage of the duty-free concession,” said Thompson.

“We’ve also made the decision that we would continue to put in place a zero-rated VAT concession for construction services,” added Thompson. “This is important, because not only will you be able to get customs duty-free building materials, but also for the contractor’s service, you will be able to take advantage of the zero-rated VAT concession. We want to do what we can to keep the cost of construction as low as possible and that is the reason why we have extended that concession. It has been extended to June of 2021. So, we want to tell residents in Grand Bahama and Abaco that they can take advantage of these concessions.”

“This is important because construction continues to be an important part of our rebuilding efforts in Grand Bahama and Abaco,” added Thompson.

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