By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Opposition’s (FNM) chairman has sounded the alarm over potential fee hikes in today’s Budget despite the pledge of no new or increased taxes being branded “huge” for business confidence.

Dr Duane Sands, voicing concerns that were echoed by Dr Leo Rolle, the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) chief executive, is warning that previous taxation-related promises were followed by fee increases for boat registration and other services in that year’s Budget.

With Michael Halkitis, minister of economic affairs, pledging that today’s 2025-2026 Budget will contain no new and/or increased taxes, the Free National Movement (FNM) chairman was quick to respond with scepticism and suggest that the details of the Government’s fiscal plan will require careful examination as both sides sought to set the tone and narrative ahead of today’s release.

“As we prepare for yet another Budget debate, the Davis administration is already practicing its slick talk,” Dr Sands said in a statement. “Michael Halkitis promises ‘no new taxes’, but Bahamians remember what happened after those same words were spoken last year.

“Service fees went up, processing costs rose, and the Government found more creative ways to squeeze the average household while calling it something else. This administration has a credibility problem. They brag about being ahead of revenue projections yet struggle to pay small contractors, healthcare workers and vendors. Some have been forced to demand cash payments just to make ends meet.”

Government fees should cover the cost of providing services, and increase in line with inflation. However, many fees have remained unchanged for years, even decades, and both the magnitude and suddenness of unexpected hikes has frequently resulted in complaints and push back from those affected.

However, the Government’s ‘no new or increased taxes’ pledge has already given the Bahamian private sector some comfort. Ben Albury, the Bahamas Motor Dealers Association’s (BMDA) president, told Tribune Business: “I think that’s the key. That’s what everyone wanted to hear; that there will be no increase in taxation. That’s about it.

“That’s huge for us. As you know, we pay very high duties on vehicles in most cases, and whenever they mess with the duty structure it can be very damaging. We may be stuck with heavy inventory or new loads we have coming in. That changes and can throw off your entire plan.

“You may be be bringing in a certain model because of the duty structure, and that can change and change the entire way you approach your business. Even if there’s a reduction in the duty in certain areas, that can be very devastating initially based on what you have in stock,” Mr Albury added.

“We’ve had that before where you pay a higher duty on vehicles, have hundreds of thousands of dollars in stock, and the duty goes down and you lose money on that inventory” because you imported it at the higher rate and cost.

Mr Albury added: “I’m optimistic. I think it’s going to be a good Budget. Of course, we’re getting nearer to an election now. Business is still robust, and we’re hoping to have a comparable year with what we had last year. So far the numbers are strong.”

The Government, in its Budget preview, suggested that the upcoming year’s fiscal plans will seek to send the message of an inclusive economy for all that leaves no one behind by detailing projects targeted at the 16 main populated islands.

“This fiscal road map for the year ahead reaffirms the Government’s commitment to sustainable, inclusive growth across all islands,” the Prime Minister’s Office said in a statement. “The theme for this year’s budget — ‘Expanding opportunities: Island by island’ — reflects the Government’s strategic focus on equitable development throughout the country.

“The Budget builds on the progress made since 2021 and underscores ongoing efforts to ensure that every Bahamian, regardless of location, has access to opportunity, resources and meaningful advancement.

“From Grand Bahama in the north to Inagua in the south, the 2025-2026 Budget will highlight targeted investments in infrastructure, education, healthcare, digital innovation and economic empowerment with a focus on job creation, small business support and community resilience,” it added.

“As the country continues on its path of stability, opportunity, affordability and reform, the Government remains committed to a future where growth is not concentrated, but shared island by island, community by community.”