NASSAU, BAHAMAS — While acknowledging that Abaco and Grand Bahama are still recovering from the impact of Hurricane Dorian, Economic Affairs Minister Michael Halkitis said yesterday that the government was not of the view that a “blanket concession” could continue perpetually.
Halkitis addressed the fate of the Special Economic Recovery Zone (SERZ) Order, set to expire on December 1, at the Abaco Business Outlook conference.
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.
“The concessions for building materials, electrical fixtures and supplies, hardware, plumbing, household furniture, and appliances remain in effect until December 1st 2022. I understand that persons had to be approved by March 31st, 2022. The import of replacement vehicles is also ongoing up until December 1st 2022. Persons who had previously been approved and have not been able to import their vehicle can still use those forms up to this deadline. The cut-off date for the application process was March 31st,” said Halkitis.
He continued: “We understand that the recovery is not complete; it’s still ongoing and people still need access to those concessions. We do not believe a blanket concession can go on perpetually. We will go to December 1st and make another assessment at that time. We are also committed that should a decision be made, to receive applications on a case by case basis and deal with those persons in need.”
Daphne de Gregory-Miaoulis, Acting President of the Abaco Chamber of Commerce noted that the SERZ order had been crucial to Abaco’s rebuilding effort, arguing that the Abaco Chamber fought hard to get the order extended more than once.
“We were granted a total of three years but we actually didn’t have the benefit of three years. Approximately six months after the order was granted we were hit with the effects of COVID and that brought everything to a screeching halt,” said de Gregory-Miaoulis.
Acknowledging that government could handle tax concession applications on a case-by-case basis, she noted that this nor the decision to wait until December 1st to reassess the SERZ order does not help businesses in their planning process. She also argued that Abaco and Grand Bahama should have been exempted from VAT altogether.
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