NASSAU, BAHAMAS — Prime Minister Philip “Brave” Davis yesterday defended his administration’s decision to remove customs duties on pleasure vessels, saying it will help grow the yachting industry.
The elimination of the ten percent duty was not reflected in the recent budget exercise.
Instead, Financial Secretary Simon Wilson sent a memorandum to customs officials on June 23rd telling them that they must implement the removal of the duty on pleasure vessels even though it was not changed in law.
The Free National Movement (FNM) has lambasted the administration over the move and questioned the legality of implementing the change without first changing the law.
Davis said yesterday: “I did speak in my communication about reducing taxes on yachts and we intended to develop and build the yacht registry to permit them to be able to house themselves in The Bahamas.
“Housing in The Bahamas means more for marinas, housing in The Bahamas means more opportunities for Bahamians to be engaged more directly in that maritime industry. As you recall, one of our plank is to develop the blue economy.
“We have already entered an arrangement with the LGM Maritime Authority with the Ministry of Education to engage as many Bahamians who would wish to be in the maritime industry to be able to go there on scholarship.
“And we also have a commitment from the cruise industry and the yachting industry once they are able to as it were have a home here to engage any Bahamian who has had a certification coming from the LGM Maritime Authority.
“So, this is all part and parcel of a big picture of growing our blue economy.”
Davis said officials will have to examine how the omission “fell through the crack” and failed to be implemented during last week’s budget exercise.
He suggested he has not closed off the option of returning to Parliament to change the law.
“I’ll sit down with the minister of economic affairs, financial secretary, my permanent secretaries, the deputy prime minister and we’ll work out what has to be worked out to achieve the goal that we think is necessary for the development of our blue economy,” he said.
