Steady as she goes: Turnquest budget has no major surprises

By Khrisna Russell

Deputy Chief Reporter

krussell@tribunemedia.net

DECLARING the Minnis administration’s 2019/2020 Budget a “break from the past”, Finance Minister K Peter Turnquest announced several new duty exemptions and rate reductions worth $28m in government revenue yesterday.

The deputy prime minister told the House of Assembly this presentation was proof that the government could budget properly and put an end to guessing games of how officials think revenue should be raised or speculation into how tax dollars should be spent. Mr Turnquest announced that household refrigerators and stoves along with an array of school supplies including pens, pencils, sharpeners, crayons and chart paper will be made duty free among other things.

While he did not announce any new tax categories or a value added tax increase, Mr Turnquest did reveal that government decided to make permanent the VAT zero rating on electricity bills and water bills. Moving forward, it will remain that customers with electricity bills $300 and lower will not incur VAT charges. The same will apply for those with water bills $50 or lower per billing cycle.

“We have set a new precedent for proper budgeting, in that we have now implemented monthly meetings with each government agency to go over their expenditure plans, and ensure that they remain in line with the ceilings set forth for the budget year, and that funds are utilised appropriately to advance the key policy initiatives and priorities of this government,” Mr Turnquest told the House as he wrapped up his more than three hour long budget presentation yesterday.

“Our in-year reporting also ensures that we remain transparent in the way in which we both acquire and use public funds, making us accountable to our citizens, as we should be.

“Our government has ushered in a new era of sound, transparent and responsible fiscal management, supplemented by a broad spectrum of critical and transformational structural reforms that will set a proper and stable foundation for sustained private sector-led economic growth and job creation. I firmly believe that our revamped model of governance will indeed give rise to a better future for all Bahamians.”

He also said: “This budget stands for a government that is a better partner to the Bahamian people. We are transforming our execution and service delivery so we can provide Bahamians with better results. We are refocusing our spending so we can provide Bahamians with better benefits. Not the type of benefits in the past that have increased the dependence of citizens on the government, but the type of benefits that allow Bahamians to be empowered and independent.”

The duty changes, Mr Turnquest said, are a part of the government’s effort to rebalance the tax burden between provision of goods and services and reduce the accompanying distortionary impacts.

The deputy prime minister said this represented the government making good its commitment to reduce duty and excise rates over the next three years.

The proposed tax relief measures are intended to provide reprieve to all citizens and to encourage economic activity by making the import of certain items relatively cheaper, the East Grand Bahama MP said.

As a result the government hopes to make it easier for persons to enter existing markets and in some cases, create new ones.

Mainly, the focus of these reductions is around educational supplies and equipment, and household implements and goods.

Items to be duty free include: home refrigerators of 18 cubic feet or smaller and home stoves 30 inches wide or smaller; pens, pencils, crayons, sharpeners, school rulers and chart paper and fire extinguishers.

Household furniture will also see a considerable duty reduction from 45 percent to 25 percent and pots and pans from 45 percent to 25 percent.

Additionally the duty on projectors and projector screens will be lessened from 45 percent to 35 percent.

Garbage can liners and flashlights will further be reduced from 45 percent to 25 percent.

Rates on radios also will be less at a rate of 35 percent from 45 percent.

The government also plans to remove the duty from musical instruments.

It will also allow trailers for commercial fishing boats to be eligible for duty exemption and will further amend the Spirits and Beer Manufacture Act to reduce the minimum bushel requirement for production, to now make microbreweries eligible for import duty concessions.

There also will be duty exemptions applied to new and hybrid vehicles.

These include reducing the duty on new vehicles between 1.5 litres and 2.0 litres valued at $50,000 or less from 65 percent to 45 percent.

He said in this context, only cars with less than 200 miles on the odometer will be considered ‘new’. This makes smaller more fuel-efficient vehicles more affordable, the finance minister said, adding there will be harmonisation of rates on all new electric and hybrid vehicles valued up to $50,000 to 10 percent.

This measure will have a sunset clause of five years, after which this special revision will revert closer to the rates for other small size vehicles.

And in anticipating the 2020 ban on single use plastics, the government proposes to increase the duty on biodegradable and compostable plastic shopping bags from five percent to 45 percent; but at the same time, reducing the duty on reusable cloth shopping bags from 30 percent to five percent.

Comments

birdiestrachan says...

Turnquest has done what the new car dealers wanted him to do, But the surprise for
both of them is we will not be buying any new cars.

Posted 30 May 2019, 10:10 a.m. Suggest removal

John says...

Well, what you mean is 'ordinary Bahamians will not be buying new cars'. The banks will not qualify them and those who do qualify do not want the hassle of loan payments when they can purchase a Japanese vehicle in fairly good condition 'for cash', and can get good and reliable use out of it for a few years until they can afford to purchase another one. But there are some who can afford to buy new vehicles for cash.

Posted 30 May 2019, 11:07 a.m. Suggest removal

birdiestrachan says...

one news paper reads the duty on small stoves and refigerators will be reduced. the other reads there
will be no duty which is TRUE. being as Turnquest LIES so much, I suppose neither
is TRUE.

Posted 30 May 2019, 10:22 a.m. Suggest removal

John says...

This budget does have a little heart in it and some conscience with relief for Bahamians. let's see if they put the furniture stores and car dealers through the same rigmarole that they put the clothing and shoe stores through, where they must be tax compliant, including taxes for every property they own and that they must apply for the tax exemption every time goods are imported into the Bahamas. Or will they remove the duties from these goods carte blanche? And speaking of car dealers they most have found very special favour with the Minnis government as this is the second consecutive budget that they are seeing custom duty reductions on vehicles.

Posted 30 May 2019, 11:04 a.m. Suggest removal

Hoda says...

I thought they said the reduction in duty on vehicles were to encourage people to buy fuel efficient vehicles - and cutting down on the affordable Japanese cars that do give you good use until they breakdown and are left on the side of the roads, when people discover the car may be cheaper but the parts to maintain them might not be so.

Posted 30 May 2019, 11:13 a.m. Suggest removal

bahamianson says...

it is great that duty is removed from some items, however, the consumer will never see the savings. Case in point, the government dropped duty on hand towels last year or the year before , and Super Value has gone crazy with the price of hand towels. Before the duty was dropped on hand towels, the special was one for 99 cents. After duty was dropped, the special is one for $ 1.39 ...... unbelievable! Super Value charges more for hand towels now than before the duty was dropped!

Posted 30 May 2019, 11:18 a.m. Suggest removal

ohdrap4 says...

yep, a few months ago. they used to sell 2 5 pound bags of parboiled rice for 4.99 , plus vat at 7.5 %, so 5.38.

Now that it is vat free, this week solomons sells two bags for 5.50.

Same difference.

Posted 30 May 2019, 11:45 p.m. Suggest removal

sheeprunner12 says...

Cheapskate Turnquest says "do more with less" ....... so how do you do that when what was given before is not enough?????? ......... How can you cut the Dept of Education budget by $20 million and do more???????? ........ Are there that many hologram workers on the payroll???

Posted 30 May 2019, 12:14 p.m. Suggest removal

Well_mudda_take_sic says...

Turnquest's head should be put on the chopping block if he did indeed cut $20 million from public education.

Posted 30 May 2019, 12:42 p.m. Suggest removal

Well_mudda_take_sic says...

You would have to be certifiably foolish to buy a costly new vehicle to put on the kind of roads we have on New Providence Island - over crowded and full of holes, depressions, etc. - with the type of ADD crazy drivers everywhere - running red lights (those that are still working) while talking away on cell phones, fender benders all over the place, dings and dents from adjacent vehicles wherever you park, not to mention outrageous maintenance & service costs, skyhigh financing costs, and exorbitant insurance premiums. As the saying goes, a fool and their money are easily parted. LMAO

Posted 30 May 2019, 12:52 p.m. Suggest removal

TalRussell says...

Really, how did comrade KP managed pull off stoods up on floor House say with straight face that anything done over past 750 days under governing Imperialists red shirts - could ever have been seen by 91,409 voting in 35 Imperialists red shirts as their House MP representative..... as a “break" from the (PLP's) past........................maybe so, maybe not.................

Posted 30 May 2019, 4:08 p.m. Suggest removal

bogart says...

TAX FREE ...FOR BUYING AIPPLANES AND HELICOPTERS PREVIOUS BUDGET.......yep yep yep....Can see majority people pore buying airplanes an helicopter....even changing parts SERVICING...maintaining repairs to we air planes an helicopters..... .......NOW BENEFITING ....ALL WE PORE PEOPLE IN LESS TAXES FOR NEW CARS.....as we need to change cars going long distances to da airport hanger........NOW AS WE PORE PEOPLE .....go home we can certainly appreciate new less expemsive tax purchasing furniture decor....muddoes dred dont rich people know that pore people will try feed children before buying furnitures ....an cant use electric stove...fridge electricity off.........Records recent past some we pore people like 4,000 MORTGAGE CUSTOMERS HOUSES REPOSSESSED....definitely tax reduced a plus......MIND YOU.....reduced no tax on less $300 bec bill ANOTHER PLUS TO WE PORE PEOPLE HOMES 5,400 HOMES HAV ELECTRICITY CUT OFF.....an all rest pore people jam us like sardines an family hardly using electricity.?????.....WE DA PORE PEOPLES ...MAJORITY OF POPULATION OF DA NATION..........CERTAINLY BENEFITS TO MAJORITY PORE PEOPLE .... FRO DUTY FREE AIRPLANES AN HELICOPTER AN PARTS REPAIRS......NOW ADDED TO REDUCED TAXES BRAND NEW CARS......AN RRDUCE TAX OF FURNITURES FOR WE PORE PEOPLE SOME 4,000 HOMES REPOSSESSED....MANSIONS....NOT TO FORGET 5,400 PEOPLE HOMEs WIDDOUT ELECTRICITY.....we pore using outside yard wood stove an $2.00 can airsol can butane gas on one burner stove cooking cheapest fat foods..in done already pots an pans done work fine......why do rich peoples hav to be putting together Budget having no clue what is pore people going through....mindya da one about pore people making microbreweries but problen is we drinking da production to calm da nerves.........listenin to dem making it easier FOR INCREASING PORE PEOPLES...MORE PORE FAMILIES...MORE PORE PEOPLE....to afford new car....new furnitures....new stove....new pots an new pans....goin along wid new jet...new helicopter....new boat trailer.....

Posted 30 May 2019, 5:36 p.m. Suggest removal

ohdrap4 says...

Are you, by any chance, Tal Russel's son?

Posted 30 May 2019, 11:47 p.m. Suggest removal

bogart says...

YOE ARE ONE OF THE FEW WHO WOULD WANT TO RICICULE.....BELITTLE... ...SPIT IN WE FACES....DA...PORE....WRETCHED...TIRED....HANDICAPPED.........DENY US RIGHTS.......WANT TO DENY RIGHTS OF FREEDOM OF SPEECH...........WE AINT ALL BEAUTIFUL WELL DRESS...FANCIED UP TO GO TO BE YA BEAUTIFUL CLIQUE OF NARROW MINDED DESPISING WE.....INELEGANT....BUT RICICULE AS YA MIGHT SPIT IN WE FACES.....BUT AS YA TRY....WE WID YA SPIT IN WE FACES STILL HAVE RIGHTS......... DA BUT WE FORGIVE YA.....

Posted 31 May 2019, 10:25 a.m. Suggest removal

John says...

So how comes KP Turnquest and H A Minnis did not give Marvin Dames and Anthony Ferguson more money to kill more Bahamians and wreck more cars..

Posted 30 May 2019, 11:56 p.m. Suggest removal

Log in to comment