05302024 BUSINESS

THURSDAY, MAY 30, 2024

Scepticism greets Govt’s

1-1.5% deficit projection

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

FISCAL analysts and the Opposition yesterday voiced scepticism that the Government will hit its revised deficit target range of $146m-$219m for the current fiscal 2023-2024 fiscal year.

Gowon Bowe, Fidelity Bank (Bahamas) chief executive, told Tribune Business that the Davis administration will have to break the decades-long trend of nine-figure fourth quarter ‘red ink’ to meet the Prime Minister’s 1-1.5 percent of gross domestic product (GDP) forecast that was unveiled in the 2024-2025 Budget communication.

Philip Davis KC, addressing the House of Assembly, signalled that the Government is projecting it will achieve either a near-balanced Budget or modest surplus during the three months to end-June 2024 given that the deficit for the nine months to end-March stood at $214.1m. However, it has also been forced to push back by one year its ambitions to finally achieve a fiscal surplus. “The revised current GDP estimate for fiscal year

2023-2024 is $14.586bn,” the Government’s 2024-2025 Budget data affirmed. “The anticipated deficit for fiscal year 2023-2024 is expected to fall between 1 percent and 1.5 percent of GDP.” No actual figures for the revised deficit forecast were provided, but Tribune Business calculations showed this works out to between $146m and $219m.

Key tax arrears jump 31% to

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

TOTAL tax arrears due to the Government from three key revenue streams increased by 31 percent to $1.325bn during the nine months to endMarch 2024, it was revealed yesterday.

Fiscal data disclosed that, despite the $112.4m revenue increase unveiled by the Prime Minister for the same period, VAT, real property tax and Business Licence fee arrears

and associated penalties had risen by more than $300m during the first three quarters of the current 2023-2024 fiscal year. The Davis administration further expanded the tax arrears owed to the Public Treasury by including the $357m it is demanding from the Grand Bahama Port Authority (GBPA) to cover the cost of providing government in Freeport over and above the tax revenue generated by the city - a move that takes the total to $1.682bn.

High-end real estate’s VAT underperform ‘shocking’

Such an outcome would be slightly higher than the original $131m full-year deficit forecast, which was pegged as equal to 0.9 percent of GDP. However, the Government’s full-year deficit forecast does not align with historical trends that have typically seen it incur $200m-plus deficits during the final three months of its fiscal year.

hit $1.325bn

Philip Davis KC, unveiling the 2024-2025 Budget in the House of Assembly, said the latter figure does not include the $75m bill that the Government plans to issue to the GBPA for the upcoming fiscal year - a move that would raise the sum allegedly owed by Freeport’s quasi-governmental authority to $432m..

“The Government intends to invoice the Grand Bahama Port Authority for $75m as per the Hawksbill Creek Agreement,”the Budget document said yesterday. “This is

not included in the fiscal year 2024-2025 revenue forecast.”

However, even if the GBPA’s purported reimbursement debt is excluded from the calculations, the growing mountain of tax arrears raises questions as to how effective the Government’s crackdown on delinquents, bill duckers and evaders has been to-date. “That arrears position should be going in the opposite direction if they are getting people to pay,” one source said.

Permanent residency reform labelled ‘huge’

By NEIL HARTNELL Tribune Business Editor

nhartnell@tribunemedia.net

REALTORS and attorneys yesterday praised the Government’s “huge” move in raising the economic permanent residence threshold to $1m and diversifying how wealthy foreign investors can qualify.

Prime Minister Philip Davis KC, unveiling the 2024-2025 Budget in the House of Assembly, disclosed that the Government is raising the minimum investment required by one-third or $250,000, from $750,000 to $1m, but expatriates are no longer solely

restricted to real estate purchases to qualify. In a move long-argued for by the Bahamian financial services, legal and real estate industries, he said persons will now be able to qualify by acquiring what he described as “zero coupon bonds” from the Central Bank. The proceeds will be invested in education, health, Family Island infrastructure development and culture, he promised, and not go into the Government’s consolidated fund to finance operational expenses. And, in a bid to ensure investors value economic

Manufacturers hail Customs bond end

By NEIL HARTNELL Tribune Business Editor

MANUFACTUR-

ERS yesterday hailed the Government’s decision to eliminate the Customs bond and 45 percent machine parts duty as “a huge benefit” that will help them compete on a more “level playing field”.

Walter Wells, president and chief executive of Caribbean Bottling Company, the local Coca-Cola producer, told Tribune Business that the move will have a “tangible” impact on authorised producers under the Industries Encouragement Act as it will potentially boost cash flow and free-up assets for use in daily business operations.

He spoke after Prime Minister Philip Davis KC, in unveiling the 2024-2025 Budget, revealed that the requirement for authorised manufacturers to post an annual Customs bond is being eliminated along with import tariffs of up to 45 percent on replacement parts needed to sustain business operations.

“Every manufacturer licensed under the Industries Encouragement Act has to establish a bond supported by a bank in an amount that Customs deems appropriate based on the size of your operation,” Mr Wells explained of the current situation. “It’s renewed every year, you pay the bank a

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Prime Minister’s assertion that the Government has collected just 8 percent of its VAT target for high-end real estate sales was yesterday branded “shocking” by industry professionals.

Andrew O’Brien, the Glinton, Sweeting & O’Brien law firm partner, told Tribune Business he found this “hard to believe” after Philip Davis KC, in unveiling the 2024-2025 Budget communication, revealed that the Government had received just $15.1m of its $190.3m fullyear target for VAT levied on real estate deals worth $1m and over.

“That sounds very unusual,” he said. “That’s shocking that it’s that different. It certainly seems like the high-end market is robust from our perspective. I wonder. That’s surprising. I don’t know. Is there some accounting hiccup in how they’re dealing with those funds because it does sound very unusual. It sounds really low, alarmingly low, and I find it hard to believe.”

An “accounting” issue could be involved. For the Budget book, which sets out all the Government’s revenue and spending figures for the present 20232024 fiscal year to-date and upcoming 2024-2025 period, provides a much different figure than that given by Mr Davis for VAT collected on $1m-plus real estate sales during the nine months to endMarch 2024. The Budget book gave $81.454m as the figure for how much had been generated from this revenue line item during that period - a sum more than five times’ greater than that cited by the Prime Minister. The discrepancy was not explained

PHILIP DAVIS KC GOWON BOWE KWASI THOMPSON

GOVT ‘FAILED TO ADDRESS THE HIGH COST OF LIVING’

By FAY SIMMONS

THE Budget unveiled yesterday by the government has failed to address high inflation and the high cost of living, according to Opposition leader Michael Pintard.

Speaking at a press conference after the budget contribution, Mr Pintard said the public is “increasingly becoming frustrated” by the Davis administration’s failure to address

serious economic issues head on.

He said: “The government recognises that Bahamians are increasingly becoming frustrated,

because they have failed to address the stubbornly high inflation, the high cost of electricity, the high murder rate that we are experiencing as a country and the failing health system. Bahamians have also been outraged because of their lacklustre performance relative to the persistent immigration crisis.

“What we heard this morning is yet another set of disappointing and inadequate policy plans by the Davis administration. It comes across clearly that they are out of touch with the realities, the hard

impact of the cost of living on the average Bahamians.”

Mr Pintard said many Bahamians are concerned about the high cost of electricity relative to its reliability.

He said he expected Mr Davis to provide clarity on the way forward for Bahamas Power and Light (BPL) during his budget presentation but was left without answers.

He said: “Many Bahamians are concerned about the high cost of electricity. If you live in the east, you were out of power or your power was erratic, just

over the last 48 hours. If you’re in Eleuthera, this is a common occurrence particularly North Eleuthera, but including South Eleuthera.

“So, we are having a significant amount of problems with respect to BPL and the Prime Minister, we thought, would have been addressing this issue. How are we going to get reliability in the provision of power? What is his future plan with respect to reducing the amount of rental generation that we have?”

Mr Pintard said the Davis administration has

How companies must deal with worker insubordination

Insubordination occurs when an employee is outright disobedient or disrespectful to a manager, which can easily provoke conflicts and may result in negative consequences for that worker.

However, understanding what constitutes insubordination and how to address this issue can help managers, supervisors, business owners and employees maintain a positive and productive work environment.

What constitutes insubordination in the workplace?

When employees agree to work for a company,

they also agree to specific guidelines outlined in their handbook. Failure to comply with such rules can result in insubordination. Depending on the situation, employees who commit acts of insubordination can receive warnings or termination of their employment. Insubordination typically includes some of the following.

Failing to show up for work

When employees start a job, they agree to particular terms of employment, including a work schedule. If an employee refuses to

come into the office during their assigned schedule, that can serve as an example of insubordination.

Leaving early without notice

If an employee is scheduled to end their shift at 3 pm but decides to leave at 1pm without notifying their employer or asking for permission, this serves as an example of insubordination.

Overtly disrespecting authority

If an employee intentionally creates conflicts by yelling or using vulgar language, openly mocking

or disagreeing with a manager’s directive in the presence of employees, this no doubt puts the manager’s authority in doubt.

Sabotaging team or company projects

The act of sabotage might include actions against a workplace project, initiative or goal. Refusing to perform tasks as part of a project constitutes insubordination. Similarly, an employee performing tasks that their manager specifically asked them not to, because it harms the project or team in some way, is insubordination.

Tips for resolving conflict at work

* Identify improper behaviours: If a manager recognises significant insubordinate behaviours, it is important to address them immediately. By doing this, managers make their expectations clear about proper behaviour and set the overall tone for other employees.

* Document incidents: Take notes and include the participants, locations and dates of the incidents. Also gather supporting evidence, such as statements from

other employees who witnessed the incidents.

*Remain calm: When hosting a conflict resolution conversation, maintaining a calm environment can help all involved feel more comfortable. Listen before speaking or reacting, so as not to escalate the situation.

* Remain objective: Being objective is an essential component of conflict resolution, and requires listening to each side’s perspective to avoid blame. When everyone feels heard, it helps to maintain respectful conversations.

* Identify areas for compromise: Compromising develops ideas to finding optimal solutions.

* Develop an action plan: After resolving a conflict, develop a plan to stay on track and maintain good relations. Overall, while employees sometimes feel the need to challenge or refuse workplace guidelines, managers might find it helpful to involve a third party, such as another employee or the human resources department, who can serve as objective mediators.

Ultimately, these insubordinations can be observed in a series of patterns over

increased the cost of electricity “in a dramatic way” by removing the hedge that the previous Minnis administration put in place and not utilising the generation they found in “perfect working order” when they came to power. He said: “In a dramatic way, the Davis administration has increased the amount of money Bahamians are spending to a private company for rental general generation. And they are losing active use of several of the engines that they found in perfect

time, and managers can issue warnings to correct them. However, after ample warnings, termination is the correct option. Until we meet again, live life for memories as opposed to regrets. Enjoy life and stay on top of your game.

welcomes feedback at dee-

dee21bastian@gmail.com

Marketing Analyst, International Award-winning

Bahamas teams with Hong Kong to realise its arbitration ambitions

THE Bahamas has teamed with its Hong Kong counterparts to promote this nation as a centre for international arbitration and alternative dispute resolution (ADR).

The Ministry of Economic Affairs, in a statement, said the Government has entered agreement of co-operation with the Hong Kong International Arbitration Centre following discussions between representatives Bahamian officials and the latter’s leadership in November 2023 and earlier this month.

The two sides have agreed to jointly explore co-ordinated activities including conferences, workshops, training and other events related to international arbitration and/or other means of alternative dispute resolution (ADR).

The agreement also involves other possible forms of co-operation between the Government and the Hong Kong Centre, including visiting each other’s offices on behalf of interested parties for the purposes of training or information sessions; sharing knowledge about best practices; disseminating information on each other’s activities; and providing recommendations of candidates for arbitrator appointments upon request.

The agreement is designed to help The Bahamas’ grow as a viable jurisdiction for arbitration and other alternative dispute resolution processes by providing training opportunities for Bahamian practitioners. It will also further increase The Bahamas’ profile as a preferred ADR jurisdiction in the Americas. Michael Halkitis, minister of economic affairs, said:

“This Agreement of Cooperation with an established and leading arbitral centre like the Hong Kong International Arbitration Centre is an important milestone in the promotion and development of international commercial arbitration for The Bahamas.

The Hong Kong International Arbitration Centre, established in 1985, is one of the leading arbitral institutions in the world. It is located in one of the three most preferred seats of arbitration by international users and specialises in arbitration, mediation, adjudication and domain name dispute resolution.

The Ministry of Economic Affairs said the Hong Kong centre’s facilities have been ranked first worldwide for location, value for money, IT services and staff helpfulness. It is also well-known for its arbitral tribunal secretary training programme and for being at the forefront of innovative arbitration practice.

Joanne Lau, the Hong Kong centre’s secretary general, said: “We are pleased to collaborate with the Government of The Bahamas on their initiatives to promote arbitration and other methods of dispute resolution. We look forward to forging this new partnership in the Americas.”

“In the past, we have been primarily focused on legislative reform. But, having now enacted the UNCITRAL Model Law on international commercial arbitration, we have shifted focus to education and capacity-building while building valuable relationships with key players in the global dispute resolution community. Our collaborative partnership with the Centre is indicative of this focus.”

SENATOR MICHAEL HALKITIS

SENATOR MICHAEL HALKITIS

PM: ‘NEVER UNDERESTIMATE BAHAMIANS’ ON FISCAL GOALS

By NEIL HARTNELL

THE Prime Minister yesterday asserted that “it’s never a good idea to underestimate Bahamians” as he touted the Government’s ability to beat the International Monetary Fund’s (IMF) fiscal predictions.

Philip Davis KC, in unveiling the 2024-2025 Budget in the House of Assembly, argued that his administration will not only beat the Fund’s $379m deficit forecast for the current fiscal year, equal to 2.6 percent of gross domestic product (GDP), but is also ahead of schedule on reducing the country’s debtto-GDP ratio.

He asserted that the Government has “pulled the country back from the brink by exercising fiscal discipline, while still putting our compassion for the Bahamian people at the heart of our policies”, and slashed the annual deficit by $1bn in three years since the COVID pandemic, although it remains to be seen whether the revised $146m-$216m deficit forecast for 2023-2024 actually holds.

“In their most recent staff report, the IMF predicted that the debt-to-GDP ratio would decline to 78 percent by the 2027-2028 fiscal year,” Mr Davis said.

“As we can see, our debtto-GDP ratio has already reached 79.9 percent of GDP by the end of March 2024.

“We are several years ahead of schedule. It’s no small thing to beat IMF projections by several years, and doing so reflects the seriousness of our commitment to our fiscal plan and our debt reduction strategy.”

The Prime Minister also praised the success of the Government’s public procurement reforms with the Go Bonfire online

portal. “In October 2022, we embarked on a transformative journey with the launch of the GoBonfire e-procurement platform, aimed at modernising our procurement procedures and enhancing transparency across all government agencies,” Mr Davis said.

“This platform empowers vendors by providing them with seamless access to procurement opportunities, which allowed them to efficiently search for opportunities, download necessary documents and receive timely notices. As of May 9, 2024, the data from the Go Bonfire portal speaks volumes about the tangible benefits of this initiative.

“With total government savings amounting to $16.5m, we’ve successfully optimised spending and negotiation processes, leading to substantial cost reductions. Moreover, the registration of 6,377 external vendors signifies robust participation and healthy competition in government procurement, fostering a vibrant marketplace,” he added.

“Furthermore, the platform’s provision of 4,177 total opportunities, encompassing completed, evaluated, open and archived projects, underscores its pivotal role in promoting transparency and accessibility throughout the procurement process.”

Elsewhere, the Prime Minister said there will be upcoming Business Licence reforms focused on companies generating annual turnovers exceeding $5m to accompany the imposition of the 15 percent minimum corporate income tax on entities that are part of multinational groups with top-lines over 750m euros.

“The coming into force of the international business income tax for large multinationals would necessitate

FREEPORT BAZAAR OWNERS: ‘WE’LL LISTEN TO GOV’T OFFER’

By NEIL HARTNELL and Fay Simmons Tribune Business Reporters

THE Government’s bid to acquire Freeport’s International Bazaar for $30m is in the early stages of negotiation, with a representative for its owners yesterday saying: “We’ll listen to what they have to say.”

Chris Paine, president of the International Bazaar Owners Association, speaking after the Prime Minister said his administration is seeking to “source” financing to acquire the dilapidated, abandoned site that has been closed for more than a decade, confirmed that talks to-date have only been preliminary.

“We haven’t got there yet,” he confirmed. “In a nutshell, yes, we are in discussions and if the Budget indicated they want to move forward we will listen

to what they have to say.”

Mr Paine agreed that any acquisition that eliminates a “20-year eyesore” in the heart of Freeport could provide a major economic boost.

“I think it would be significant,” he said. “Bear in mind that it’s at the centre of Freeport with the exception of downtown and, for a long time, was the very heartbeat of Freeport when we had the two hotels up and running and the Bazaar and the casino. With that all gone, it’s become an eyesore since we finally closed it in 2012.

“Any new development that starts afresh, regardless of what it does or is, there’s an economic benefit from that standpoint. There needs to be some economic activity. The place, if cleaned up, any development would be better than what is there at the

moment. It would certainly be positive, no question.

“People have got so used to driving past this place every day, seeing the wreck and remains of what is left of the Tower Hotel with broken windows and it falling down. We’ve been looking at this for 20 years. Do we want to look at it for another 20?”

Philip Davis KC said yesterday that his administration is looking to “source” $30m to purchase the derelict International Bazaar and revitalize the site to boost tourism in Grand Bahama. He added that the site has to potential to create jobs, generate business activity and stimulate the local economy.

He said: “This budget year, we expect to source $30m to fund the purchase of the International Bazaar and the re-opening of the West Sunrise Highway to

accommodate the projected growth in tourism and economic activity over the next few years.

“Beyond preserving a significant landmark, this endeavour holds economic potential, as the revitalisation of the Bazaar can stimulate tourism, create jobs and generate business activity. Similarly, reopening the West Sunrise Highway will improve connectivity and facilitate growth in Grand Bahama.” Opposition leader, Michael Pintard, though, questioned the Davis administration’s “math” over the $30m purchase of the 9.5-acre Bazaar site given that the 427-acre Royal Oasis resort was sold for $33m in 2007. He said Grand Bahama residents find the purchase “bizarre” as the real estate market on

Pintard: Govt will bust its budget

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

THE DAVIS administration will “bust” its budget, warned Opposition leader Michael Pintard yesterday, saying that the government had “missed the mark” on its deficit projections.

Mr Pintard said the administration of Prime Minister Philip “Brave” Davis is spending “substantially” ahead of its revenue collections, contributing to the $214m deficit it incurred in the first nine months of the fiscal year. He said: “You would recall that the government had projected previously that they would meet their

deficit targets, they will be able to account for why this spending is substantially ahead of the revenues that they are earning.

“They have now admitted that there will be a shortfall in the deficit. In fact, at this point, I believe we are somewhere around $214m deficit, despite the fact that we were calculating at a nine-month level, we expect that not only have they missed the mark in this budget period, they will also in our view, bust the deficit in the next budget cycle.”

Mr Pintard said he was “concerned” about the lack of discipline shown by

the Davis administration when it comes to spending and criticised the amount of consultants hired by the administration that “cannot show a return on investment”. He said: “I mean they themselves have admitted they’re not going to meet those targets. They will bust their budget as they usually do because they lacked discipline in curtailing their spending. They will they will continue to buy extremely expensive cars... they have other vehicles to buy, they have new countries to travel to without showing us what the benefits are.

“So, no, we don’t expect that they are going to reach their targets. And it’s most unfortunate, because what they sought to sell in this communication is that their revenue enhancement strategy was in fact, allowing them to get this record amount of revenue, and so they’re fine.

“In other words, we don’t have to cut back. We’re doing so well and collecting outstanding funds, that we can keep doing exactly what we’re doing. And it’s a mistake. They have hired so many consultants and it’s extremely expensive. But

High-end real estate’s VAT underperform ‘shocking’

before press time last night, with Simon Wilson, the Ministry of Finance’s financial secretary, attending a Customs conference and unable to comment.

However, Mr Davis yesterday told the House of Assembly that VAT collected on high-end property sales was nowhere to reflecting real estate market activity based on the number of economic permanent residency and international persons landholding permits being issued by the Government.

“The area of revenue under-performance which became apparent during these nine months is the VAT on real estate transactions. For example, if we look at the budget forecast for VAT on realty transactions over $1m, it is $190.3m,” Mr Davis said

“At the end of March 2024, we have only collected $15.1m or 7.9 percent of this total. It has also been observed that the certificate of residency

and international holding permits issuances are consistent with balance of payments data that shows strong inflows of funds for property purchases.

“Last year’s revenue intake of this item was $121.1m. These are the reasons why it is necessary for this government to take a deeper dive into the under-performance of this category of revenue.” He added that this is set to be tackled by “implementing legal and administrative measures to improve compliance” through legislation and regulation accompanying the 2024-2025 Budget.

To close potential tax avoidance loopholes, Mr Davis said economic permanent residency applicants must now produced a stamped conveyance - proving they have paid the due 10 percent VAT on their purchase - to the Department of Immigration before they can obtain their permit.

Further cracking down, economic permanent

residency applicants seeking to qualify by purchasing real estate (see other article on Page 1B) must also provide an appraisal report no more than a year old to prevent tax avoidance through the submission of a contrived, lower price than was actually paid. A real property tax assessment number must also be provided to the Immigration Department.

“This administrative step will help streamline the process and ensure that the real property tax number is carried throughout all processes across all government agencies, which would allow for auditing to ensure that the correct tax amount is being paid,” Mr Davis said.

“We have discovered that information provided by the local real estate sector about the buoyancy of the high-end real estate market is not reflected in the Government’s receipts.

“We have witnessed a sizable drop in revenue this year for this category. This

is the primary underperforming revenue item that we have identified, and we have included a number of administrative measures to address the underreporting of real estate transactions.”

In a bid to further plug loopholes, the Government tabled changes to the International Persons Landholding Act that - if passed - will see permits expire if VAT or real property tax is not paid within 90 days of the tax assessment or “requisite return” deadline.

And the Davis administration is also launching a six-month amnesty, set to expire on December 1, 2024, to entice persons who have failed to present their conveyances for stamping and payment of the required VAT/Stamp Duty to finally bring those documents forward. The incentive is that conveyances will be stamped at the value when the real estate transaction took place, rather than at the now-higher market value, thus cutting tax payments for those who do come forward.

“The Government is aware that there are a number of unstamped documents held by persons, which results in these

persons not being able to prove land ownership to the Department of Inland Revenue and otherwise,” the Prime Minister said.

“This is an impediment for development and commerce in this country. So, the Government has made the decision to grant amnesty to allow documents to be stamped at the value at the time in which the transaction took place rather than at the current market value. This regime is temporary and effective immediately with an expiration date of December 1, 2024.

“This is a significant concession. At present, all documents are stamped at their current market value, regardless of when they were purchased. For example, suppose an individual purchased a property thirty years ago for $25,000 and sold that same property for $50,000, but never stamped the documentation,” he added.

Key tax arrears jump 31% to hit $1.325bn

From pg B1

Data drawn from the Department of Inland Revenue shows that VAT arrears have increased from $175.103m for the previous 2022-2023 fiscal year to $215.834m at end-March 2024, representing a rise of more than $40m or 23.3 percent. Business Licence fee arrears, though, were relatively flat year-overyear standing at $56.5m as at end-March 2024.

Yet total real property tax arrears, as disclosed by the Budget data, had jumped to $1.052bn as opposed to the $780m shown for fiscal year 2022-2023 - an increase of 34.9 percent or $270m. Outstanding commercial property taxes, in particular, were shown to have risen by more than $112m or 45.1 percent from $248.276m in 2022-2023 to $360.324m at end-March 2024.

Arrears due on foreignowned vacant land jumped by 35.6 percent from $228.522m to $309.944m over the same period, while outstanding taxes owed on owner-occupied property

rose by 35.2 percent from $140.577m to $190.107m. Finally, residential property tax arrears expanded by 17.9 percent to $192.521m at end-March from $163.078m in the 2022-2023 financial year.

It is likely these figures will be further reduced in the final three months, or fourth quarter, of the present 2023-2024 fiscal year that concludes at end-June. Meanwhile, more than 56 percent of the Government’s forecast $3.269bn in recurrent (fixed cost) spending for the upcoming 2024-2025 fiscal year its comprised of just three categories. These are civil service wages, debt servicing (interest) costs, and subsidies to loss-making state-owned enterprises (SOEs). Interest payments on the Government’s existing debts are predicted to account for 20.1 percent, or just over one out of every five dollars of recurrent spending, at $676.724m - a near-$42m rise on the current year’s outlay.

This remains the secondlargest line item in the Budget behind wages and salaries for public sector workers, and represents money that is being sucked away from public services

“Unfortunately, this is all too-often a deal breaker, preventing the transaction from moving forward, hurting both the buyer and the seller, and acting as a drag on the real estate market.” Mr O’Brien yesterday described the amnesty proposal as “reasonable”, adding that the 10 percent late penalty should remain, but said it was”unusual” for buyers to delay as it left them exposed to significant risk.

“I do think the penalties should still apply so people aren’t encouraged to hang on to conveyances for however many years until this [amnesty] comes around again,” he said, adding that failing to have land deals recorded in the Registry of Records leaves buyers exposed to significant legal and financial jeopardy that could cost them their purchases.

“I would say it’s unusual because you cannot record your conveyance until it’s stamped, and recording protects you from the vendor selling to someone else, it protects against title disputes and judgments entered against the previous owner. I’m surprised.”

“Later on, a new prospective buyer wants to acquire the property through a mortgage. The property now has a small house on it that is worth $150,000. In order to have the property financed, all of the transactions for the last 30 years need to be recorded; that is, to have the VAT paid at the current market value of $150,000 plus penalty.

such as health, education, social services, housing and national security to pay foreign and Bahamian holders of the country’s national debt.

As for civil service salaries, these are projected to hit $767.95m or 23.5 percent of total recurrent spending in the 2024-2025 fiscal year. This amounts to about a $23.5m year-over-year increase in the Government’s wage bill compared to the full-year forecast for 2023-2024. Subsidies are set to form another $412m or 12.6 percent of recurrent spending.

Combined, civil service wages, interest payments and subsidies total $1.857bn in recurrent spending. The Government is also forecasting a $9.5m yearover-year increase in total recurrent subventions to loss-making state-owned enterprises to $464.845m as compared to the $455.229m predicted for the current fiscal year.

Half the $465m will go to the Public Hospitals Authority (PHA), which is due to receive $232.455m over the 12 months to endJune 2025. Other major subsidy recipients are the National Health Insurance Authority at $46m; the Water & Sewerage Corporation with $36m; the University of The Bahamas at $36m; Bahamasair at $25m; and the Public Parks and Beaches Authority at $24m.

Scepticism greets Govt’s 1-1.5% deficit projection

For the past two fiscal years, 2021-2022 and 20222023, the Government has sustained deficits totalling $353.5m and $293.7m, respectively, for the fourth quarter as a result of government ministries, departments and agencies racing to bring forth bills that the Ministry of Finance knew nothing about so that they can be paid and cleared before the fiscal year-end.

Former Ministry of Finance insiders have told Tribune Business that successive administrations, both PLP and FNM, have found it impossible to break this trend. Should this be repeated over the coming weeks, it would likely drive the 2023-2024 fiscal deficit - which measures by how much government spending exceeds revenue - towards $400m rather than the range forecast by the Prime Minister.

Mr Davis, though, highlighted the $108.6m or 39.2 percent year-over-year increase in April’s revenues as providing the basis for why the Government believes it can hit the 1-1.5 percent of GDP range - an outcome that would confound the predictions of international observers such as the International Monetary Fund (IMF) but be spot on with Moody’s April forecast of a 1.2 percent deficit.

“I would like to highlight that, historically, March has typically been the highest revenue-generating month in a given fiscal year,” the Prime Minister told the House of Assembly. “Consistent with that pattern, March 2024 was indeed a strong month.

“But it is the month following to which I draw your attention. The preliminary total revenue for April 2024 is estimated to be $385.8m, reflecting a significant increase of $108.6m or 39.2 percent compared to April in the previous year.

“The strong revenue performance in April shows

that fourth quarter revenue performance will be very strong, which provides the basis of our favourable outlook for meeting our revenue targets to the end of the fiscal year.”

Mr Davis said the Government’s deficit for the nine months to end-March 2024 totalled $214.1m, a figure equal to 2 percent of nominal GDP and which incorporates the impact of inflation. That percentage does not align with this newspaper’s full-year calculations, but the actual figure represents a $44.6m or 17.2 percent decline compared to the $258.7m deficit at the 2023-2024 fiscal year’s mid-point.

“This represents a decrease of 14.3 percent from the deficit of $249.8m in the same period of the prior year,” the Prime Minister added of the $214.1m figure. “The deficit in the previous year amounted to 2.4 percent of nominal GDP at end March-2023. We achieved a decrease in the deficit via operational efficiency, while ensuring no new taxes and controlling expenditure.”

Hailing April’s “extraordinary performance” on revenue, Mr Davis said: “Year-over-year revenue growth is currently at 9 percent, notwithstanding the underperformance in VAT on real estate transactions. We expect little or no fall in revenue performance over the last month of the fiscal year, and project total revenue of $3.1bn, which represents an 8 percent increase in overall revenue.

“On the expenditure side, we project both recurrent and capital expenditure to be slightly below our original estimates with recurrent expenditure expected to be about 5 percent below budget and capital expenditure around 10 percent below budget. Most of the shortfall in the capital spending directly relates to slow disbursements from multilateral-funded projects.

“Total expenditure is expected to be $3.3bn in comparison to the budgeted amount of $3.45bn. We estimate that our projected deficit is going to fall between 1 and 1.5 percent of GDP, slightly higher than the 2023-2024 fiscal year’s original forecast of 0.9 percent of GDP.”

Kwasi Thompson, former minister of state for finance in the Minnis administration, was among those voicing doubts over the Government’s ability to break historical precedent and hit its revised 2023-2024 deficit target.

“I think it is extremely difficult for the Government to even come close to meeting their target,” he told Tribune Business.

“I think it is also one point to look at...not the existing year’s target but next year’s target.” The Opposition’s finance spokesman said the Government has delayed its plans to achieve a fiscal surplus by one year by projecting it will run a small $69.8m deficit in the upcoming 2024-2025 Budget year.

It had previously forecast that it would generate a $109.2m surplus in 20242025, and Mr Thompson said the magnitude of the reversal unveiled yesterday - from revenues exceeding spending back to a deficit position - triggers the fiscal responsibility provisions in the Public Finance Management Act that require the Government to present a corrective action plan to Parliament.

Such a plan is mandated if the adjustment is greater than 0.5 percent of GDP, and the 2024-2025 forecast has swung from a 0.7 percent surplus to a 0.5 percent deficit - a 1.2 percent correction. “Next year’s target was supposed to be a surplus, and they have adjusted that to where they are projecting a deficit,” the east Grand Bahama MP said.

“There are very significant financial and legal implications with the Government making these kinds of adjustment without

explanation. It’s not unlawful for the Government to make adjustments but they have to follow the provisions in the law, the provisions in the legislation, with making adjustments. I think it’s extremely unlikely the Government will be able to meet these targets.”

Asked whether he was referring to the Public Finance Management Act’s corrective plan provision, Mr Thompson replied: “That is precisely what I’m referring to when I said there are financial and legal implications for the Government in making these adjustments. They have to follow the law.”

Simon Wilson, the Ministry of Finance’s financial secretary, was at a Customs conference and unavailable for comment before press time. However, Mr Bowe agreed that the revised 2023-2024 deficit forecast triggers questions with the $3.1bn revenue outturn forecast by the Prime Minister more than $200m below the $3.316bn total intake projected 12 months ago.

“You’re correct,” he told Tribune Business. “Our historical fiscal performance, particularly in the fourth quarter of each year, is generally a deficit. Projecting that we are going to be

producing a surplus is certainly a trend not in line with what we’ve experienced for the better part of our independent life.

“It’s not a question of how reliable it [the deficit forecast is]. It’s the basis upon which they are formulating that forecast, and are there any unusual items we are unaware of?” Mr Bowe acknowledged that it was possible to hit the 1-1.5 percent of GDP deficit target via asset sales and one-off transactions that generated lump revenue inflows.

Yet he added: “We know it’s unlikely there will be a tremendous reduction in expenditure in the fourth quarter, and the question is around: Is that deferring payments versus recognising everything that’s done?”

Seemingly anticipating suggestions that the Government is delaying paying its bills to meet its deficit targets, Mr Davis yesterday said: “I want to note that payables have been declining, falling to 2.1 percent of nominal GDP at the end of 2023, so that suggestions that the reduction in the deficit is due to an accumulation of payables are erroneous.”

However, the Prime Minister was referring to the first six months and

not the 2023-2024 fiscal year’s second half. And Mr Bowe yesterday queried why the Government gave a percentage range for the deficit outcome rather than a figure.

“It begs the question: Why was the Prime Minister, as minister of finance, not given a forecast number instead of a percentage?” he added. “Why give a relative range or percentage because GDP can change? You know what the fourth quarter should be projecting: Why cannot you give an actual number?”

Mr Davis yesterday said of the 2024-2025 Budget forecast: “The fiscal deficit is estimated at $69.8m or 0.5 percent of GDP, with the primary balance showing a surplus of $586.9m or 3.9 percent of GDP. Given this, the debt-to-GDP ratio has been projected at 75.3 percent of GDP at the end of the 2024-2025 fiscal year.

“The 2024-2025 Budget estimate for total revenue amounts to $3.54bn.... Total expenditure is estimated to amount to $3.61bn, of which, recurrent expenditure accounts for $3.27bn and capital expenditure for $344.5m.”

Permanent residency reform labelled ‘huge’

permanent residency, become established members of this society and do not abuse this status, Mr Davis added that as a condition of obtaining their permits they must hold either of these assets - real estate or bond - for a minimum ten years.

“The requirements for application for economic permanent residency have been updated. The minimum investment requirements to qualify for economic permanent residency status will be increased and diversified,” the Prime Minister said.

“Before, the requirement only called for $750,000 in real estate investments. This will now increase to $1m in real estate investments and or the purchase of zero coupon bonds from the Central Bank of The Bahamas. In both cases, the asset must be held for a minimum of ten years. This measure will come into effect on January 1, 2025.

“The legislation is clear that the proceeds from these bonds can only be used for investment in education, health, culture and Family Island infrastructure, and not to fund ordinary expenses of the Government. We are also amending the Immigration Act to clarify that deed of gift cannot be used by foreigners to make application or qualify for permanent residency.”

Mario Carey, the Better Homes & Gardens Real Estate MCR Group founder, who in January this year called for the economic permanent residency benchmark to be raised to $1m, backed both the increase, diversification and terms attached while suggesting that another way to qualify should be owning a business that employs Bahamians in the domestic economy.

He told Tribune Business of the move: “That’s good. That’s very good. That’s huge. I would think another way to qualify would be if they have a business here. That would have been a really good one... bringing a unique business to The Bahamas that employs Bahamians.

“Those are very popular all over the world for countries that are gaining needed skills, new ideas and global-focused businesses. We might be missing the boat on that one and need to rethink it, but it’s a good one. I think ten years is long but it’s a good one. Our real estate market is not meant for flipping.”

Richard Lightbourn, the former FNM MP and consultant/partner at the McKinney, Bancroft & Hughes law firm, echoed Mr Carey in backing the Government’s decision to impose the ten-year term as a means to prevent foreign investors from simply acquiring status in The Bahamas, rapidly flipping their property purchases for profit, and exiting without making a meaningful economic contribution.

“That could easily be higher as far as I’m concerned. I don’t think that will have much of a negative impact,” he said of the

$1m threshold. “I know it’s quite a common practice that, if you want for some reason to become a permanent resident, it entitles them to certain tax concessions in their own country.

“People apply for permanent residency, they get it because they have spent so much. That’s where it was headed. That probably makes sense [the ten years]. From my viewpoint I felt that something like that should have been introduced.

“People were getting permanent residency, saying thank you very much and selling the place. The Government was getting VAT on the resale but the goal with permanent residency was for them to live here and that by itself brings money into the country, buying goods and doing good for the economy.”

Mike Lightbourn, Richard’s brother and head of Coldwell Banker Lightbourn Realty, predicted to this newspaper that the economic permanent residency changes unveiled by the Prime Minister will have no impact on investor demand for high-end Bahamian real estate. “I think the general public will certainly look more favourably on it,” he said. “I don’t have a problem with it personally.”

Mr Carey, meanwhile, also praised the Government’s move to review the little it is earning from investors through Crown Land seabed leases. “It is not right to sign away acres of seabed to commercial ventures for minimal amounts, something I am sorry to say has occurred in the past. No more,” Mr Davis said.

“The Government is currently undergoing a comprehensive evaluation of all seabed leases in order to guarantee that we are receiving fair compensation for the use of our resources.” Mr Carey said of the move: “I think that’s a brilliant idea. I think the Government should look at figuring out how to empower Bahamians to make money out of seabed leases.

“Some could be through leasing the seabed for buoy farms for boats so they just don’t throw their anchors overboard. People just throw their anchors anywhere. How can you have a mega yacht anchored off Atlantis, stay for nothing and pay no dues and fees? It makes no sense. The Government should offer that business out to people.”

Hungary’s foreign minister visits Belarus despite EU sanctions, talks about expanding ties

By YURAS KARMANAU Associated Press

HUNGARY'S top diplomat visited Belarus on Wednesday for talks on expanding ties despite the European Union's sanctions against the country.

Hungarian Foreign Minister Péter Szijjártó declared that "our position is clear: the fewer sanctions, the more cooperation!"

The EU has slapped an array of sweeping sanctions on Belarus for the repression, which followed mass protests fueled by the 2020 presidential election that was widely seen by the opposition and the West as rigged. Belarus' isolation further deepened after authoritarian President Alexander Lukashenko allowed Russian troops to use his country's territory to launch a full-scale

invasion of Ukraine on Feb. 24, 2022. While saying that "sanctions don't work," Szijjártó noted, however, that Hungary was "increasing economic cooperation with Belarus in areas not affected by sanctions."

"We will provide any support to develop cooperation," he said. "We talk about this openly, we don't hide anything."

Belarusian and Hungarian officials signed an agreement on cooperation in nuclear energy that envisages training personnel and handling radioactive waste.

"Of great importance is the agreement signed here today on nuclear energy cooperation, which allows us to use the experience Belarus gained here while constructing reactors with a similar technology," Szijjártó said after the talks.

Hungary is working with Russia on adding a new reactor to its Paks nuclear facility, which is expected to go online by the end of the decade. Belarus also has a Russia-built nuclear power plant.

Belarusian Foreign Minister Sergei Aleinik voiced hope that Hungary taking over the EU's rotating presidency in July would help encourage "healthy trends" in Europe.

"People have grown tired of confrontation, pressure and escalation," Aleinik said.

Szijjártó previously made a trip to Belarus in February 2023, becoming the first top official from an EU country to visit Minsk after the West slapped it with sweeping sanctions following the August 2020 presidential election.

SUMMERSVILLE HOLDINGS LTD. In Voluntary Liquidation

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, SUMMERSVILLE HOLDINGS LTD. is in dissolution as of May 24, 2024.

International Liquidator Services Ltd. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

Manufacturers hail Customs bond end

fee every year, and a number of manufacturers have been around for decades paying bills as they should. The question has arisen for years: Why do we need to put a bond in place? The Government agreed that it’s not necessary and all the manufacturers impacted by it are grateful for it.”

Explaining the practical impact, Mr Wells said:

“There are two factors. Banks trend bonds like a loan. You have to provide security for it, It could be a lien over the company’s assets, it could be a lien over real estate, it could be a lien over cash. And if Customs needs a bond for $500,000, the bank fee is 2 percent. That’s $10,000 a year.

“On top of that, you may need those assets to secure a loan to fund your business. It creates a barrier for people to obtain funding they may otherwise need to fund their operations and stay in business. It’s a real benefit, a tangible benefit, particularly when starting a business and the first four to five years are the most difficult. You need every benefit you can scrap.

“It’s a huge benefit, especially with somebody

starting out, and doesn’t need to have assets tied up in a bond that, for the most part, is not called upon.” Mr Wells said the elimination of import duty on parts and replacement components will be another “huge benefit” for hard-pressed Bahamian manufacturers.

“The Government historically has allowed you to bring in your equipment duty-free,” he added. “You set up your production and manufacturing facility but if you need to service it, particularly when you have machinery with a life expectancy of 15-20 years, you have to service it on a regular basis. The duty on the parts, at some point, actually exceeds the value of the equipment.

“This is a huge benefit to manufacturers. You’ll have some manufacturers who will be quite relieved with that enhancement provided by the Government. It’s a very positive development for manufacturers and I congratulate the Government for having the foresight to do so,” he added.

“One of the primary reasons for concessions was to allow local manufacturers to compete against imported products. If you compete with a

manufacturer in Fort Lauderdale, Florida, and they can buy equipment at the same price as you or better, they don’t have to pay import duty on equipment, the parts they utilise, and they have cheaper electricity rates.

“If you have to pay duty on parts or your equipment it makes it very difficult to compete against them. We need a level playing field, and that’s what the Government has done in this instance. Every bit helps. We have just got to keep moving ahead, two steps forward and not too many back. We keep moving in the right direction.”

The Prime Minister, in unveiling the bond and machinery parts duty changes, said the move is an example of how his administration is “breaking down obstacles” to business growth and development.

“We want to create greater opportunities in manufacturing, and reduce barriers to entry,” Mr Davis added.

“By encouraging more opportunities in industry and manufacturing in The Bahamas, we not only broaden our economy but we lessen our dependency on imports. Therefore, we are removing the bond requirement for authorised

CALIFORNIA ADVANCES MEASURES TARGETING AI DISCRIMINATION AND DEEPFAKES

By TRÂN NGUYỄN Associated Press

AS corporations increasingly weave artificial intelligence technologies into the daily lives of Americans, California lawmakers want to build public trust, fight algorithmic discrimination and outlaw deepfakes that involve elections or pornography.

The efforts in California — home to many of the world's biggest AI companies — could pave the way for AI regulations across the country. The United States is already behind Europe in regulating AI to limit risks, lawmakers and experts say, and the rapidly growing technology is raising concerns about job loss, misinformation, invasions of privacy and automation

bias. A slew of proposals aimed at addressing those concerns advanced last week, but must win the other chamber's approval before arriving at Gov. Gavin Newsom's desk. The Democratic governor has promoted California as an early adopter as well as regulator, saying the state could soon deploy generative AI tools to address highway congestion, make roads safer and provide tax guidance, even as his administration considers new rules against AI discrimination in hiring practices. On Wednesday, he announced at an AI summit in San Francisco that the state is considering at least three more tools, including one to tackle homelessness. With strong privacy laws already in place, California

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, FAY JANICE THOMPSON, of Nassau, The Bahamas, intend to change my name to FAY JANICE SHIRE If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Offcer, P.O.Box N-742, Nassau, The Bahamas no later than thirty (30) days after the date of publication of this notice.

manufacturers under the Industries Encouragement Act. In addition, we are removing Customs duty on parts for machinery for businesses under the same Act.”

He further explained: “They can bring in their equipment duty-free, but if something goes wrong and they have to bring in a part, 45 percent, we are removing duty on parts and machinery. Persons can find the bond, in particular, an obstacle. Banks are requiring cash for the issuance of those bonds.

“They have to pay fees to the bank for [the bond]. That no longer exists. That cash they put up for the bond can be used for operational expenses to grow your business. That’s what we’re about: Finding

obstacles to growth and knocking them down.”

Mr Davis said the Government also plans to reform watercraft legislation to strengthen Bahamian ownership in this tourism niche. “We are always working to expand Bahamian ownership in our tourism industry,” he added.

“In this Budget, we are adding a new provision, specifying that only Bahamians may be issued a licence for the commercial operation of all motorised watercraft, including jet skis. The recreational watercraft industry in The Bahamas must be owned and operated by Bahamians.

“This includes ownership and operation of jet skis for hire and other commercial

leisure boating activity. Bahamians should get the maximum benefit from our successful tourism industry.” Andoni Lisgaris, the Bahamas Excursion Operators Association’s (BEOA) president, told Tribune Business he would reserve judgment until the legislation was passed into law.

“As far as I’m aware it was already an industry protected for Bahamians, but we can see how that worked,” he said. “We have to wait and see if they go through with it. I’m going to see if they put their money where their mouth is. The same with retail. It’s protected for Bahamians, but go downtown and a lot of the jewellery stores are run by foreigners. I don’t want to get too excited right now.”

is in a better position to enact impactful regulations than other states with large AI interests, such as New York, said Tatiana Rice, deputy director of the Future of Privacy Forum, a nonprofit that works with lawmakers on technology and privacy proposals. "You need a data privacy law to be able to pass an AI law," Rice said. "We're still kind of paying attention to what New York is doing, but I would put more bets on California." California leaders said they cannot wait to act, citing hard lessons they learned from failing to reign in social media companies when they might have had a chance. But they also want to continue attracting AI companies to the state.

Govt ‘failed to address the high cost of living’

working order when they came to government. He did not address any of the of these issues.

“He talked broadly about a crumbling infrastructure, but again, laid out no plans in terms of what they would do. We believe as the workers of BPL fear, that the government is engaging on the path to a privatisation exercise.”

Mr Pintard also questioned why the Davis administration has not revealed plans to conduct a competitive bidding process

for the firms that seek to partner with BPL. He said although Mr Davis revealed plans to increase the amount of renewable power generation in New Providence and on the Family Islands he did not reveal his plans for the utility.

He said: “The problem that we have at this Budget Communication did not address is that they said nothing about whether or not they’re going to engage in a competitive bidding. To date, there has been no request for proposal that has been issued and the

NOTICE

NOTICE is hereby given that CLORENE SIMON #10 Kenwood Street off Montrose Avenue, Nassau, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23rd day of May, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

HG LTD

Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas registered in the Register of Companies under the registration number 204646 B.

(In Voluntary Liquidation)

Notice is hereby given that the liquidation and the winding up of the Company is complete and the Company has been struck off the Register of Companies maintained by the Registrar General.

Dated this 29th day of May A.D. 2024.

ANDRE BIAGINI DE AMORIM LIQUIDATOR

employees have no real assurance as to who they will be working for. Will be the government of Bahamas or one of the agencies that the government is going to privatise BPL between

“So there is no clarity on the structure of the newly configured consortium that will take over BPL. So quite frankly, despite all of their talk about solarisation in the Family Island, and in New Providence, we are no closer to understanding what the comprehensive plan for BPL would be and whether or not the

government is going to follow the law with respect to bringing on members of the private sector to own or control traditional assets held by BPL.”

He maintained the Davis administration gave out an “illegal loan” to BPL to pay off the utility’s arrears but did not pay its debtors or explain to the public what the finds were used for.

He added that BPL’s $500bm legacy debt was “accumulated over multiple administrations” but the price of electricity “skyrocketed” after Mr Davis and former

NOTICE

NOTICE is hereby given that JEAN RENARD PAULSAINT Hospital Lane, Nassau, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 23rd day of May, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

DSAVI LTD.

Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas registered in the Register of Companies under the registration number 210085 B.

(In Voluntary Liquidation)

Notice is hereby given that the liquidation and the winding up of the Company is complete and the Company has been struck off the Register of Companies maintained by the Registrar General.

Dated this 29th day of May A.D. 2024.

DIOGO SAVI Liquidator

Minister of Works, Alfred Sears, “botched” the hedge programme. He said: “The government also sought to reflect the role they played in the skyrocketing cost of electricity by mentioning that they inherited $500bn dollars in in legacy debt. The truth is that’s accumulated over multiple administrations. What they didn’t say is that the skyrocketing cost of electricity was really as a result of Prime Minister Davis and Minister Sears botching the hedge programme.

“The government then took out or issued an illegal loan that is not permitted in law to BPL and they increased the cost to all of our electricity bills outside of Grand Bahama. And the purpose for them doing so was to pay off the arrears. To date, they have not paid off the arrears and the government and URCA are duty bound to explain what did they do with all of the funds that they earned on the backs of residents as well as businesses.”

The Public is hereby advised that I, DEVANTE MARQUES POLDOR, of Rosedale Street, Nassau, The Bahamas, intend to change my name to DEVANTE MARQUES MILLER If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Offcer, P.O.Box N-742, Nassau, The Bahamas no later than thirty (30) days after the date of publication of this notice.

NOTICE

NOTICE is hereby given that GRELINE CHARLES Carmicheal Road, Nassau, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 30th day of May, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

Pintard: Govt will bust its budget

they cannot show a return on investment for all these additional persons that they have hired, many of whom are not doing any public service work, but doing political work. So, we are concerned about the lack of discipline by this administration with spending.”

Simon Wilson, Financial Secretary, however, maintained the government will meet its 1 to 1.5 percent deficit target as revenue is currently trending around nine percent.

He said: “Our revenue now is trending around nine percent. We may see a slight fall off in revenues but if you keep at eight percent we’ll be about 1.1 percent. So, if you look at the numbers and the trend, you will see this is why we believe 1.5 is what it is.”

During the press conference, Mr Pintard said the Davis administration is “continuing to destroy its credibility” by a refusal to admit it is having a “cash crunch”.

He questioned why the government claims it is doing well financially

but does not meet its obligations. He said: “We believe that this administration is continuing to destroy its credibility and because of the lack of candour on the state of the nation’s finances, it is clear that we are having a cash crunch with this administration, not withstanding their boast about revenue. Notwithstanding their boast about how well their revenue enhancement agency is performing.

“They would have to explain why we are not feeling the impact of what

they consider to be ahead of target revenue earnings. Why are they not paying small home contractors in Grand Bahama and New Providence? Why are many public servants not getting their deductions from their salary paid to their insurance company and other institutions that they are obligated to pay to?

“The government has to explain with all of the revenue that they continue to boast about? Why are they not meeting all of their obligations? And why are Bahamian businesses, many of them, requiring that they

pay in cash, but are not honouring some of the purchase orders?”

Mr Pintard said fiscal revenues should be at 75 percent but it is currently at nine percent and noted that the $214m deficit is greater than the $132m initially projected. He said: “You will recall the Prime Minister boasting that they are going to have a surplus in this upcoming cycle well, they have obviously abandoned that particular boast. And the question is why? And I believe that they are duty bound to explain to the public. “Over the first ninemonth period of this budget, it is clear that the

Freeport Bazaar owners: ‘We’ll listen to Gov’t offer’

From pg B3

the island could offer more acreage for the same price.

Mr Pintard said: “This Budget also did not address in any serious way what is going on in Grand Bahama and the challenges the community of Grand Bahama now faces. The Government mentioned, for example, and we found it rather strange those of us

who live in Grand Bahama, that they intend to spend $30m for the acquisition of the Bazaar. Which is quite bizarre.

“The reality is just a few years ago, the 427-acre Royal Oasis resort was was bought by Harcourt in 2007 for $33m. The Bazaar itself is 9.5 acres. We don’t understand the math. There may be a logical explanation as to why the Government

PM: ‘Never underestimate Bahamians’ on fiscal goals

From pg B3

changes to the current Business Licence and Stamp Tax regime. For example, no business would be subject to both taxes, and the Stamp Tax regime would amend to convert the 5 percent tax on dividends into a withholding tax to avoid a potential double taxation,” he added.

“We also have to ensure that there are no opportunities for tax arbitrage and, as result, when we table the new legislation we will also table amendments to the Business Licence Act focusing on the largest companies with revenues

of $5m or more per annum. This is approximately 1 percent of the Business Licence registrants.

“In the current fiscal year, 91 percent of registrants pay no Business Licence fees with declared revenue of less than $ 100,000 per annum; an additional 4 percent have declared revenues of less than $500,000; and an additional 4 percent have declared revenues of less than $5m. The proposed reform would impact only the largest companies.

“The Business Licence Act is also amended to clarify that the rate for businesses with a turnover of $100,000 and below, which

is prepared to pay $30m for a fraction of a massive development, that again, was acquired at $33m.

That’s something we intend to investigate prior to a deeper discussion during the Budget exercise, but we are very much concerned about their figures.”

Mr Pintard added that it was “interesting” the Davis administration would go “full speed ahead” with

are exempted from Business Licence tax, does not apply to financial services entities, international business companies, proprietary trading entities and family offices.” Credit unions, though, will be exempt from Business Licence fees if they pay their Central Bank regulatory fees.

“We expect that the regulatory fee applied would represent the true cost of regulation of these very important financial institutions, as the Government recognises that credit unions provide valuable access to financing for ordinary Bahamians, and we are committed to maintaining and enhancing that access,” Mr Davis said.

“We are providing a VAT exemption for individuals investing in a real estate

revenue is actually behind at 67 percent, their own admission. When at this stage, they should be at 75 percent of the budget revenue.

“Similarly, at the ninemonth mark, the VAT receipts are behind and again in is 62.5 percent of the projected VAT receipts when it should actually be at 75 percent at this at this time in the cycle.

“One of the things that that is of great concern to us is that the deficit at $214m over nine months, is in fact beyond the $132m that they actually projected.”

the purchase of the Bazaar but has not made “substantial progress” on Grand Bahama International Airport.

He said: “You will recall they were very critical of our administration with respect to the acquisition of the airport and the hotel. Ye they are buying the Bazaar at $30m. Furthermore, it’s interesting that they are moving full speed ahead with this acquisition, but they can’t seem to make substantial progress with the airport.”

trust, where the individual investment totals less than 10 percent of the ownership. Thus, the real estate trust is responsible for paying VAT when initially acquiring property, but individuals buying or selling shares in the trust are eligible for VAT exemption.

“It is required that a minimum of ten individual investors participate in the purchase of the property, and these investors must be separate entities, not related entities with beneficial ownership.... For individual Customs entries which total more than $750,000, the maximum Customs processing fee will increase from $750 to $1000. To reiterate, this will only impact individual Customs entries over $750,000 in value.”