NASSAU, BAHAMAS — The Davis administration’s recent decision to postpone the implementation of cruise passenger tax increases has created significant disruptions in the government’s revenue projections, according to Opposition Leader Michael Pintard.
Pintard asserted that the present government’s failure to consult with the cruise industry has put at risk the projected $144 million in revenue for the upcoming fiscal year.
Deputy Prime Minister Chester Cooper, who also serves as the Minister of Tourism, Aviation, and Investments, announced last week that the government has opted to delay the introduction of departure tax increases for the cruise industry until January 2024. Originally planned for July, these increases were intended to raise the tax on Freeport, Nassau, and Bimini cruise passengers from $18 to $23. Passengers departing from a cruise line’s private island without visiting any other port in the Bahamas would face a slightly higher tax of $25.
Additionally, the government plans to impose a $5 tourism environmental tax and a $2 tourism enhancement tax on each cruise passenger.
Pintard, in a statement issued yesterday, raised concerns about the resulting revenue shortfall caused by the six-month delay in implementing the tax increases.
“With that ‘U-Turn’ decision, the budgeted revenue projections have just been upended, and the budget exercise further fails to deliver for the Bahamian people as a result,” Pintard said. “The evaporation of the projected $144 million in revenue sucks the wind out of the budget sail!”
The FNM Leader accused the Davis administration of insufficient consultation and consideration of their policy choices and actions, both with the cruise industry and the airlines.
“Clearly, the administration did not consult with the cruise industry or airlines to assess the implications of this tax increase on the tourism industry and Bahamian passengers. Just as they did with their decision to increase taxes on insurance, medical services, breadbasket items, road traffic, boat registration, and various other areas, this government continues to act as authoritarian rulers rather than democratic partners with the Bahamian people and foreign stakeholders who are crucial for our economic stability,” remarked Pintard.
He further added: “As an aside, the hypocrisy of Mr Cooper and Mr Davis and their colleagues is astounding. They criticized the former government for amending the Real Property Tax Act to rectify a drafting error that would have removed the cap on high-end properties, which was not a policy decision of the previous government.
“However, today, we witness a deliberate action by the government to reverse a highly promoted revenue-generating tax primarily affecting foreign tourists, according to the Prime Minister, after just one day of protest by the cruise industry,” stated Pintard.
“We cautioned the government that their hasty and ill-informed decisions failed to consider the fact that millions of tourists had already booked their vacations well in advance, and the cruise companies (not the passengers) would have to bear the burden of these unforeseen costs if the Act were to come into force as projected.
“Furthermore, the government needed to thoroughly understand the impact such an increase would have on our jurisdiction’s competitiveness. The lack of fiscal discipline displayed by this Davis-Cooper administration, driven by their desperate need for revenue, has led them to burden citizens and businesses without engaging in proper discussions or considering the consequences,” Pintard concluded.
