NASSAU, BAHAMAS — Economic Affairs Minister Michael Halkitis yesterday doubled down on the government’s position against providing what he described as a “blanket extension” of the Special Economic Recovery Zone (SERZ) Order, noting that such a move would allow for too much ‘leakage’.
When asked about the issue yesterday ahead of a Cabinet meeting, Halkitis said: “There has been some discussion on the SERZ extension and we have made our position clear in that when you have a blanket extension it leaves room for too much leakage. We prefer to have a situation where those who are in need of relief have an opportunity to rebuild or repair in the aftermath of Dorian. Those persons can still apply on a case-by-case basis. Those would be considered most likely favorably but to just have a blanket exemption, that does not achieve the purpose of reaching those who really need it.”
While addressing the Abaco Business Outlook conference in September, Halkitis noted that while the government is mindful of the fact that Abaco and Grand Bahama’s recovery is still ongoing, it is not minded to give a blanket extension of the order.
The Economic Recovery Zone (SERZ) Order is set to expire on December 1. Following Hurricane Dorian, the Minnis administration established special economic recovery zones in the Abacos and the island of Grand Bahama to provide businesses and homeowners in the areas impacted by the deadly Category 5 Hurricane Dorian with a number of tax breaks and concessions.
Daphne de Gregory-Miaoulis, Acting President of the Abaco Chamber of Commerce noted that the SERZ has previously stated that the order had been crucial to Abaco’s rebuilding effort, arguing that the Abaco Chamber fought hard to get the order extended more than once. She has also argued that Abaco and Grand Bahama should have been exempted from VAT altogether.
