Gibson: Special zones an “economic shot in the arm” for Long Island
NASSAU, BAHAMAS — An Out Island MP said yesterday his constituents will no longer feel like “the forgotten stepsister of The Bahamas”, hailing the prime minister’s announcement of a special economic zone targeted at the southern islands of The Bahamas as “monumental”.
Adrian Gibson, the Long Island MP, told Eyewitness News he was “ecstatic” over the prime minister’s announcement yesterday.
“Over the last two budgets, I requested — in my contributions — that consideration be given for such a zone for islands like Long Island, MICAL, etc,” he said.
“As such, I was very pleased to hear the prime minister’s pronouncements. This lends to the Minnis administration’s thrust to build up our islands and expand the national economy.”
Prime Minister and Minister of Finance Dr Hubert Minnis, during his presentation of the 2021/2022 budget communication in the House of Assembly yesterday, noted the “Accelerated Bahamas Recovery Plan” calls for the establishment of a special economic zone targeted at the southern Bahamas.
This, he noted, is to spur immediate economic activity in these islands and to encourage individuals to invest in homes and businesses on those islands.
Minnis noted that through the provisions of an amended Family Island Development Encouragement Act (FIDEA), residents and businesses on these islands — or those investing in these islands — will qualify for both duty and value-added tax (VAT) concessions on the full range of materials they will need to build or renovate a house or to start or expand a business.
The qualifying islands include Ragged Island, San Salvador, Rum Cay, Cat Island, Long Island, Mayaguana, Inagua, Crooked Island, Acklins, Long Cay and Andros.
Minnis said: “The basis of selection focused on those islands where the pace of consistent economic development has been behind that of the rest of the country. The designation as a special economic zone also provides concessions on business license payable and on real property tax for qualifying individuals.
“Included in this are concessions and discounts for VAT on conveyances, with zero VAT payable by Bahamians on transactions under $500,000, and with discounted VAT for non-Bahamians under that same threshold.
“These concessions will last for two years and are intended to be a catalyst for accelerated economic activity in the southern islands by prospective investors, as well as Bahamians who may be looking to build or buy a home in those islands, which is the very ambition of Accelerate Bahamas.”
Gibson noted: “No longer do we — Long Islanders — feel like the forgotten stepsister of the Bahamas. The designation special economy zone is monumental for us.
“This will lend to further investment and development; this will reset the now sluggish economy of Long Island as persons seek to take advantage of the tax concessions and build homes, rentals, launch businesses, expand existing businesses and generally look to invest.
“As a businessman who has business interest in Long Island, I am super excited for the opportunities this will yield.”
He added: “As the MP, I am ecstatic to note that our government has seen the plight of these islands and has sought to, via these concessions, give our island an economic shot in the arm.
“This designation, coupled with infrastructural developments such as the airport and water expansion, will set Long Island on a socioeconomic and developmental path that up to now has not yet been achieved. Many Long Islanders have already communicated their support for the special economic zone and their excitement about their own business opportunities/possibilities and the bright future this represents for our island.”
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