By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A Bahamian transportation/tour operator pioneer said yesterday his company was looking at an “almost double” increase in its annual Business Licence fee, adding that the added expense would wipe out its profits.

William ‘Billy’ Saunders, founder of Majestic Tours, warned that if the Government “can’t get its act together”, there would be severe ramifications for the Bahamian economy.

“As someone who has been in this business for over 50 years, I’m very concerned about what’s happening,” he told Tribune Business.

“If the Government doesn’t get its act together our dollar is going to be devalued, and some businesses like us will either close down or sell out. That’s how I see it.

“Between the Business License increases, which will at least double, the VAT when it comes in will have a detrimental affect on tourism,” said Mr Saunders, one of several businessmen who has voiced concerns over the Government’s new Business Licence fee scheduled, as revealed in the 2013-2014 Budget.

“The added expense to a company like Majestic Tours is going to take away all of the profits that we make,” said Mr Saunders, who noted that tour operators already faced the challenge of having to absorb the rising cost of fuel because they were locked into fixed contracts.

Come July 1, the Government is aiming to introduce a new Business Licence fee schedule that “eliminates all special categories of rates”, except for financial institutions and “stand-alone retail gas stations”.

The proposed rates are:

• Businesses with turnover between $500,000 - $5 million: 0.75 per cent

• Businesses with turnover between $5 million to $50 million: 1.25 per cent

• Businesses with turnover between $50 million to $100 million: 1.5 per cent

• Businesses with turnover greater than $100 million: 1.75 per cent.

In addition, the Government is also amending the Business Licence Act to ensure subsidiary companies pay fees at the same rate as their parent.