The Bahamas is losing at least $1 million a year in unpaid work permit fees, Prime Minister Perry Christie told Members of the House of Assembly last night as he laid out other ways in which the government continues to lose revenue.
“We have to examine very carefully the manner in which work permits are applied for and issued,” Mr. Christie said. “Oftentimes, when approval is given for a work permit, the beneficiary of the approval, the person who applied, will treat the letter as approval and not really go in to collect the permit.”
Work permit fees range from $350 for approved farm labourers to $10,000 for Chief Executive Officers who work in the financial services sector.
The permits are paid for upon collection. But that could change.
Mr. Christie suggested that the government may require persons applying for a work permit to pay for that permit upon application. In the event that the permit is rejected, the money would be returned.
This system would be similar to a new departure tax collection system that would be put in place if it is approved by senators. Travellers would be required to pay their $15 departure tax upfront when they purchase their plane tickets.
“Again, in a country where revenue collection for immigration matters are of concern, it is important that we consider very seriously, as I propose to do, how to improve the efficiency of that process,” Mr. Christie said.
The prime minister has been highlighting such “leakages” in recent weeks as his government scrambles to clog the holes deepened by a $6 million revenue shortfall.
“Revenue that ought to be readily available to this government is not being collected or, if it is, is not being accounted for to the extent that it should,” Mr. Christie said. “It means very simply, therefore, that I’m optimistic with respect to being able to make the adjustments in light of the concessions we are making in the various pieces of legislation to the Bahamian people by way of exemptions in real property tax, in the purchase of first homes and exemptions of the taxi plates.”
Departments like the Immigration office are behind when it comes to technology, Mr. Christie pointed out.
“That, therefore, means Mr. Speaker, that we are still too often in too many places using a manual receipt system which in itself is capable of being manipulated and used to the disadvantage of the country,” he said.
Real property taxes, port dues and business license fees in the Family Islands are also other major ways in which the government is falling down on the collection of revenues, the prime minister said.
Mr. Christie said external agencies that have come into the Bahamas to review the local economy have expressed some concern as to the accounting practices of government agencies.
The prime minister said he is concerned.
“With respect to [the] Road Traffic [Department], I have grave difficulties in believing that [the department] today would be able to tell me the amount of licensed vehicles in the Bahamas totally, or by category,” he said.
By Candia Dames, The Bahama Journal
