2021/2022 BUDGET: PM announces employment incentive programme

PRIME Minister Dr Hubert Minnis has announced the upcoming launch of an employment incentive programme that will allow businesses to apply for a VAT tax credit to cover the salaries of up to ten new employees brought onto their payroll as of July 1.

He said this credit will be good for a salary of up to $400 per week per employee. Eligible businesses will have to follow certain compliance rules and be in good standing with the National Insurance Board. He anticipates that up to 250 businesses will take part and this will cost the government about $40m in foregone revenue.

He made the revelation during his 2021/2022 Budget Communication in the House of Assembly.

• Dr Minnis also announced plans to level the playing field for small and medium sized businesses who are faced with prohibitive startup costs.

He said Bahamian businesses will be able to apply for and obtain duty concessions on items needed to start or expand their businesses including on the first stock of inventory. He said any Bahamian entrepreneur or small business with an annual turnover of less than $5m will get the same treatment.

• The prime minister also announced plans to create a special economic zone in the southern islands to spur “immediate economic activity” in these islands through an amended Family Island Encouragement Act.

Residents and businesses on these islands or people investing in these islands will qualify for duty and VAT concessions on materials they will need to build a house or start/expand a business. Qualifying islands include Ragged Island, San Salvador, Rum Cay, Cat Island, Long Island, Mayaguana, Inagua, Crooked Island, Long Cay and Andros.

• Dr Minnis said $10m will be allocated to continue the fight for health and safety of Bahamians amid the COVID-19 pandemic. This funding will be used to purchase PPE.

He added that the government is also moving swiftly to invest $100m in hospital upgrades with $70m targeted for PMH and $19m for upgrades to Rand Memorial Hospital in Grand Bahama.

The Prime Minister announced a range of impending duty reductions and elimination for some items in the upcoming fiscal year, including the elimination of duty from disinfectant; the elimination of duty from a range of sporting equipment and apparatus; reduction in duty on a number of building supplies; and a reduction in duty on electrical wires. He also said VAT will be removed from diapers and sanitary pads/tampons.

To assist residents in Abaco and Grand Bahama, he said his government is eliminating VAT from property conveyances for two years.

• Dr Minnis said the upcoming budget will include $1.5m in funding to enlist about 75 new college recruits, ages 18 to 30, in the public service to provide an infusion of new thinking and new ideas.

In addition, $2m will be allocated to support the Junkanoo community in their development plans for a permanent headquarters, he said. This will be supplemented with provisions of Crown land to the major established Junkanoo groups and with grants from BTC’s feeder trust. Dr Minnis also said $5m will be allocated to support infrastructure buildout of the government's serviced lot initiative; $7.5m for digitisation projects for the Ministry of Education; $6m for upgrades to IT sector in the healthcare sector and $3m for food support programmes.

Comments

TalRussell says...

**Sorry PM, you're too advanced into your red party's 2017 mandate for some silly theatrical **hot air** performance on the floor of the **Popoulaces House,** put on by you and your **desk thumping** 33 House-elected red MPs, be sufficient to reclaim **governance re-electable traction** amongst the realm's **39** constituencies **PopoulacesConstituents' at large (PCAL),** yes?

Posted 26 May 2021, 1:27 p.m. Suggest removal

tribanon says...

There's a lot I could say here, but why bother......Minnis is now saying it himself much better than I could ever say it. lol

Posted 26 May 2021, 2:01 p.m. Suggest removal

TalRussell says...

The projecting tone of voice Mr. Minnis calls out **Raaaagged Island,** sounds more likes that of a **Bingo Caller** than a current PM!
My Comrades, introducing the Prime Minister, Dr. Hubert **"Bingo Caller"** Minnis, yes?

Posted 26 May 2021, 2:09 p.m. Suggest removal

John says...

Seems moor like spend, spend spend and give away more government revenue rather than go into temporary reserve mode and not sink government into debt. Of course these conscessions to small and medium businesses in the middle of a pandemic is like encouraging a weak swimmer to jump of the deep end of the pier. This will do nothing to grow the economy so this businesses will now have to fight tooth and nail with established businesses to gain market share. So no new growth will be created in the economy. These type onf incentives will be better when the market will less fickle and shows greater signs of rebound, this is like when the touristy industry is at least 50 %. The employment that will be created will not be sustainable. And if government is seeking to dig itself deeper in debt with continuation of food assistance and other support programs this will sink government deeper into debt. Of course government does not want to go into election with such high unemployment numbers and with the revenue of major corporations, like BPL, BTC, Aliv, WSC and many in the hotel industry so depressed and ways off base. So this can only be a pre election budget and the real whips and economic chains will come out in the next budget. And if the present government loses the election, no incoming government will be able to falsely prop up such an ailing economy without taking drastic measures. Some that don’t need to be extremely painful but will require government cutbacks until the economy starts to rebound. When the vat concessions given to businesses to hire additional staff or to keep on unnecessary workers is consumed, these businesses will have to let these workers go again. So this vat money that would have been in government’s coffers to assist these people will not be there and even some of the businesses will be gone. Unless there are serious efforts to draw new revenue into the Bahamian economy, government is only spurring wars and cannibalism between companies that exist and new companies coming into the market. This is not sustainable and can cause less companies to terms in active or operating and greater unemployment. Robbing Peter to pay Paul.

Posted 26 May 2021, 3:33 p.m. Suggest removal

John says...

A better strategy or policy would have been to remove the duty off clothing and shoes across the board to bring down the local costs of these goods and allow all local retailers to compete with online shopping which is drawing millions out the country every year.

Posted 26 May 2021, 4:02 p.m. Suggest removal

SP says...

Blah, blah, blah, blah, blah. What plans are in place for Bahamians to participate in the tourism industry? That's where the real money is!!!!

Posted 26 May 2021, 4:45 p.m. Suggest removal

newcitizen says...

What is stopping you now?

Posted 26 May 2021, 10:52 p.m. Suggest removal

carltonr61 says...

Another ham and turkey, money in da tee shirt election. People are in desparate prostitution mode that Minnis created to control us cattle. Imaginary phantom jobs as he locks down our nation to vaccine profits afterwards all jobs will go. A bated hook for fish to get caught then stewed. Empty talk.

Posted 26 May 2021, 5:01 p.m. Suggest removal

carltonr61 says...

This Judas has sold all Bahamians out to be crusified.

Posted 26 May 2021, 5:10 p.m. Suggest removal

John says...

Bahamians should remain in survival mode! Whether against the corona virus of for their personal or business finances.. Even if you take the vaccine, do not abandon those measures that are proven to work. Including wearing of masks, sanitizer, social distancing. Let the vaccine be secondary until it is proven to work. As for the perks and incentives being offered by Minnis. Remember this is silly season (election). Minnis may not be around in a year or so to ensure the incentives and offerings he is making. Should you reject or ignore them! NO, definitely NOT! Proceed with caution and with a back up plan. Business especially. Structure your business such that if these incentives and tax breaks are no longer available, it would have minimal impact on your business. So it may mean scaling back your original plans. Yes, the same incentives offered to foreigners now being offered to Bahamians is a good thing. Even better would be to equally distribute the tax burden.

Posted 26 May 2021, 5:44 p.m. Suggest removal

birdiestrachan says...

My understanding The Government will pay the salaries of ten-person working for private
companies starting July 1, But he did not say for how long.?

Posted 26 May 2021, 6:57 p.m. Suggest removal

ThisIsOurs says...

its up to ten per business. I wonder if the business will have to pay VAT and then get a refund because that system didnt work to well. But I like this idea, now how will they police it? tell us the controls today not a year from now when the auditor general gives a list of all the abuses

Posted 26 May 2021, 8:29 p.m. Suggest removal

carltonr61 says...

Bahamians must settle for loans we all must pay back. What an abject failure of a leader. He is giving us free handouts but we pay on exit with interest. Loans cover medical investment bailouts from questionable and self inflicted shareholders who stand to loose billions following his fear, control and vaccine of Bahamians advice. We have lost far more than we gained if look at the hole we must climb out of or be buried in.

Posted 26 May 2021, 7:55 p.m. Suggest removal

TalRussell says...

House Speaker Comrade Halston has sat up in the Speakers chair since 2017, piercing down as certain red MP's with a long and accomplished record of rising on the floor of the House be entertaining their fellow desk thumping red MP colleagues, known to the Speaker by their first names were given free-range to tell their tallest of tales** about honest and transparent governance accomplishments...yet, the Speaker who has the authority to call out such MP's, has never reigned-in a single red MP.
**The earliest tale** was when the **fake documents** were presented on the floor of the House, **bearing a fake OBAN signatory,** yes?

Posted 26 May 2021, 8:27 p.m. Suggest removal

carltonr61 says...

Judas is rescuing himself by smiling and charging us.

Posted 26 May 2021, 8:29 p.m. Suggest removal

carltonr61 says...

In The UK they are calling for the end of the Crown and Queen 👑, I told them way to go that way we we get rid of our GG that allows this criminal Covid slavery ownership of us, Her Majesty subjects to continue. One of her family alligned with convicted pedophile Eptein and Gates may have convinced her of a promoting a new world order. Canada Commonwealth is at world War against its citizens like fellow Queen territories.

Posted 26 May 2021, 8:42 p.m. Suggest removal

John says...

So do you have to take the vaccine to benefit from government’s economic initiatives? Asking for a friend. The US now requires everyone traveling by air either to or within the US to wear masks. Whether vaccinated or not. Finally common sense is kicking in.

Posted 27 May 2021, 6:01 a.m. Suggest removal

thomas says...

"Elimination of duty, by application, for construction and repairs to churches
and other buildings used for religious gatherings."...Only religious gatherings, what about troubled youth, disabled persons,etc.

Posted 27 May 2021, 1:31 p.m. Suggest removal

TalRussell says...

Think, Comrade Thomas, I'm not one deal in conspiracies but doesn't this amounts to a **targeted attempt** by the 35-House-elected red MPs to **lure the religious** into disclosing their various revenues in advance of **FullIncomeTaxation,** yes?

Posted 27 May 2021, 2:34 p.m. Suggest removal

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