Revenue Measures 2013/2014

June 11, 2013

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Issue 10

Revenue Measures 2013/2014

In the Budget Communication presented to the House of Assembly by the Prime Minister, The Rt. Hon. Perry G. Christie on Wednesday 29th May 2013, revenue measures for the fiscal year 2013/2014 effective July 1, 2013 were indicated as follows:

1. Bring into force the new Customs Management Act and Regulations.

2. Bring into force the New Tariff Act.

3. Eliminate the $10.00 stamp tax levied on Customs entries and introduce a 1% Customs processing fee. Introduce a processing fee for manifest and other declarations for inbound and outbound aircrafts and vessels.

4. Customs Duty on vehicles to be based on value rather than engine size.

5. Reduction of duty on electric motor cycles from 75% to 65%.

6. The following are now FREE from custom duty:- inverters for solar panels, solar panels, solar powered air conditions, bed pads, urinary bags, incubators and isolators and Defibrillators.

7. Creation of a new Tariff Heading for the LED Light Fixture in Chapter 94. 35% now FREE.

8. Introduce an Environmental Levy on specific items.

9. Increase in Customs Storage fees for cars from $30 per week to $50 per week.

10. Introduce a Customs License Fee to be collected from private storage facilities.

11. Eliminate bonding tax.

12. Adjustment in Customs and Immigration Service Charges.

13. Switch duty rate from ad valorem to specific cigarettes and cigarillos .05 cents per stick.

14. Adjust the excise rate applied to cigars to 0.50 plus 220%.

15. Increase the duty on electronic cigarettes to 45%.

16. Introduction of an Excise Stamp Control Act.

17. Increase the Excise Duty on Manufactured Spirits from $6.00 per gallon to $8.00 per gallon.

18. Increase the stamp duty on Imported spirits.

19. Removal of Excise Duty levied on fuel imported by power generation.

20. Amend the Real Property Tax Act so that the mortgagee of commercial properties is responsible for the payment of outstanding real property taxes outstanding over 90 days.

21. Increase Building Permit Fees and introduce new fees.

22. Increase in Police Department fees including gun         licenses.

23. Increase international banks and trust companies fees.

24. Introduce a new schedule for Business License fees and eliminated all special categories of rates, except for    financial institutions and stand alone.

25. Domestic Financial Institutions excluding credit unions and insurance companies business License fees to be based on Gross Revenue.

26. Remove the exemption of the payment of Business       License Fees for Government Corporations.

27. Amend the Business License Act so that the subsidiaries of a company are charged the same rate as the parent company.

28. Amend the Financial Administration & Audit Act to grant the Minister of Finance by Order the ability to determine the frequency of payments for any tax or fees and the imposition of any surcharges for late payment.

29. Amend the Passenger Tax Act to be consistent with the practice for airlines which charge taxes on all passengers.

30. Amend the Passenger Tax Act so that children under the age of 12 are given the $300 exemption on return to The Bahamas.

31. Amend legislation to allow surplus funds in statutory agencies to be deposited in Consolidated Fund.

32. Amend the Stamp Tax Act so that stamp tax is collected from marina slips operating under a crown land lease arrangement.

33. Amend the Stamp Tax Act so that stamp tax is applied when dividends or profits are repatriated out of the country by international companies.

34. Remove the Stamp Tax fee on electronic banking payments. That is, e-commerce transfers and point of sales payments by Debit Cards.

35. Extend the Stamp Tax exemption granted to first-time home owners for a further five years.

36. Extend the Family Island Development Encouragement Act for one year.

37. Extend the City of Nassau Revitalization Act for one year.

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