NASSAU, BAHAMAS – The government is considering establishing a bonded warehouse on New Providence to facilitate entities operating outside of the special economic zones for the benefit of those areas, Deputy Prime Minister K Peter Turnquest said yesterday.
However, Turnquest underscored the possibility of leakage is a concern as he responded in Parliament to a question from Exuma and Ragged Island MP Chester Cooper.
Cooper questioned whether there is any provision for NGOs who may not have facilities in the designated zones but operate from New Providence for the benefit of the affected areas.
Turnquest said: “This was a question that has been raised to me. There is no current provision for a bonded warehouse in New Providence to facilitate the movement of goods from foreign or domestic sources to a facility or an organization in New Providence for later supply to the islands affected.
“It is something we will look at to see how we can safely monitor and manage such a situation. We are very concerned that once we start to allow that kind of operation that the opportunities for leakage are so great that it may not be something we want to encourage but we will look at it.”
Turnquest tabled the Disaster Reconstruction Authority (Special Economic Recovery Zone) Relief Order 2019 yesterday.
The order outlines new tax relief provisions that are now available to residents and businesses in Grand Bahama, Abaco and the surrounding cays impacted by Hurricane Dorian.