NASSAU, BAHAMAS — The Bahamas Chamber of Commerce and Employers Confederation (BCCEC) said yesterday that while the 2021/2022 budget contains some items that could positively impact the business community, it is concerned that government spending to continue COVID-related support and other initiatives will inevitably lead to an increase in taxation.
In a statement yesterday, the private-sector representative noted that its initial impression of the budget presented by Prime Minister Dr Hubert Minnis on Wednesday “contains some items which could have a positive impact on the business community — however, these items require further details”.
“Over the course of the national budget debate, the BCCEC will review the draft estimates and listen to the ministers as they present their plans; such plans will give the private sector insight into the policies that will be used to implement the items contained in the budget,” said the BCCEC.
It noted that among the initiatives of interest are the announcement of the government’s intention to provide duty-free concessions for the start up of businesses or the expansion of small businesses; an employment incentive program for businesses, which would shift individuals from unemployment benefits to helping to expand the operation of existing businesses by providing incentives for the hiring of up to 10 new employees; the commitment to expand the digital footprint of government services; and the expansion of the two government-owned hospitals.
The BCCEC noted the increase in spending to fund the government’s initiatives and to continue COVID-related support is leading to an increase in borrowing.
“The business community is concerned that it is inevitable that this level of spending will lead to an increase in taxation, which will affect the private sector either directly or indirectly,” the BCCEC said.
“For this reason, there is great interest in seeing the results of and implementation of recommendations coming out of the public expenditure review being conducted by the government and the Inter-American Development Bank (IDB).
“The BCCEC looks forward to learning more about the proposed initiatives so that the business community can be positioned to once again contribute meaningfully to the economy of The Bahamas.”
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