The government is $60 million behind projected revenue for this fiscal year as of the end of October, Prime Minister Perry Christie revealed in the House of Assembly this morning, during debate on a bill designed to recoup the $10 million lost annually in uncollected departure taxes.
“Clearly, indications are that the economy has not recovered fully from the September 11, 2001 disaster in the United States of America .
“We are looking forward, hopefully to 2003 representing an improvement over that, subject to the international developments taking place with respect to possible invasions of Iraq and the implications that will have to travel destinations like the Bahamas ,” Mr. Christie said.
The Prime Minister said the government was attempting to “plug up all the holes” that exist in the collection of government revenues.
Denying that he was casting aspersion on top government officials, Mr. Christie said aside from “glaring” instances of accounting “inefficiencies” there were too many instances of smuggling and stealing which contributes to a shortfall in the government’s revenue.
The amendment to the Passenger and Ticket Taxes Act would require passengers to pay their $15 departure taxes up front when they purchase their tickets.
Mr. Christie told parliamentarians that the accounting practices of some government agencies has to be tightened up.
“As the Minister of Finance, I am obliged to indicate to Parliament that there are procedures of an accounting and audit nature that ought to be implemented,” Mr. Christie said.
“And [they] are in the process of being considered to ensure that we are measurably able to improve our abilities to collect those taxes that Mr. Christie pondered whether this was the time to grant the long-promised concessions concerning real property tax, and concessions to taxi-drivers and first-time home buyers. However, he reasoned that these concessions would be beneficial to the Bahamas in the long run.
With regards to the collection of departure taxes, Mr. Christie said some people have suggested that treasury officials be posted at local airports to collect the $15 departure tax paid to the government by each passenger when leaving the country.
However, the government is moving ahead with the debate on the departure tax Bill, which will attach the departure tax to the total ticket cost.
The proposed legislation also allows the monies to be redistributed to those travelers who cash in their ticket.
Among those exempt from paying departure fees are diplomatic personnel; children under six years old; persons traveling to the Bahmas to promote the tourism trade; a cruise passenger who has come to the Bahamas, left for another destination and has returned to the Bahamas on another leg of the journey; and transit passengers.
The amended legislation would add two more categories: persons being repatriated and the first four people over six years old traveling on pleasure vessels.
Government officials have pointed out that some airline agents who now collect departure taxes have not been turning them in. It is a practice which has even resulted in some agents being fired.
Debate on the bill was expected to continue throughout this afternoon. Authorities hope that the new method of departure tax collections will be implemented by the end of the year.
By Tosheena Blair, The Bahama Journal
