NASSAU, BAHAMAS — Progressive Liberal Party (PLP) Leader Philip Brave Davis yesterday warned “things will go from worse to catastrophic” if this nation continues with “business as usual”.
Davis, while giving an address at the launch of the PLP’s economic plan, stressed the need to build a resilient economy, create jobs and transform education.
“First, we have to understand, as clearly as possible, what is at stake. I believe Bahamians can handle the truth, and the truth is that things have gone from bad to worse, and if we continue to stand still, if we continue with business-as-usual, things will go from worse to catastrophic,” he said.
“We don’t have to stand still… Anyone who tells you that brutal austerity budgets are inevitable, that we have run out of options, lacks vision and, more importantly, is underestimating the resourcefulness of the Bahamian people.”
Apart from a reduction in value-added tax (VAT) for 12 months and a minimum wage increase recommendation under the party’s economic plan, the PLP is also proposing to expand the role of Bahamas Invest to include a Domestic Investment Board to support Bahamian businesses in participating more fully in the tourism value chain; the creation of COVID-free tourism zones; the promotion of private aviation, yachting and eco-tourism projects; increased investment in infrastructure and technological upgrades; major investment in new housing construction across the country; support for entrepreneurs; remote careers linking Bahamians to opportunities all over the world; tax incentives for SMEs; and an investment of $50 million to fund entrepreneurial developments, and up to $250 million over five years.
The party is also proposing to streamline and merge institutions providing service and funding to small businesses to remove bureaucracy and reduce administrative costs, implement a Digital 700 App, a portal for national news and emergencies, enhance the government’s procurement platform and provide free Wi-Fi and free training in community centers and public spaces.
Underscoring the fiscal challenges the country faces, PLP Deputy Leader Chester Cooper noted that public finances need to be urgently stabilized, which he said would be a challenging undertaking.
“Our first step will be to conduct a full, rapid assessment of the public finances to know the true state of things. We aim to have this completed within the first 15 days,” he said.
“That said, whatever urgent practical realities the country faces, given the economic shutdowns over the past year, we know we will need to prioritize raising revenue.
“Of course, we are all keen for tourists to return, and there are some indications that there is pent-up demand for travel in our client markets. We have to do more to increase revenue.
“We have identified several areas of opportunity, both to bring in more foreign currency revenue and also to bring in revenue to the treasury so that the government can meet its obligations.“
Among its revenue-enhancing initiatives, the PLP is proposing to revive the Revenue Enhancement Unit; ensure that high-end properties pay real property tax; ensure commercial and foreign-owned properties are on the Register and properly valued for tax purposes; collect revenue from international overflights; secure carbon credit payments for the country’s natural resources; lower imports and currency outflows through Buy Local initiatives; establish an Investment Compliance Unit to ensure international investors comply with all of their obligations under statute and heads of agreement; and pursue debt restructuring at the earliest opportunity.
Loading ...
