The Progressive Liberal Party government yesterday announced a plan of reduced and eliminated import tariffs in the new fiscal year, as has been custom.
Acting Prime Minister Cynthia Pratt made the revelation in the 2005/ 2006 Budget Communication yesterday, which was one of the shortest budget addresses in recent years. It continued a new tradition of conciseness and brevity that Prime Minister Perry Christie started last year.
The communication was delivered in just over one hour.
In the new fiscal year, the rate of duty on generators will be slashed from 35 percent to 10 percent, Mrs. Pratt revealed.
The move was expected to bring relief to residents who tend to purchase the items abroad especially in preparation for the Atlantic Hurricane Season that officially begins on June 1.
Mrs. Pratt said the intention is to assist in meeting needs that arise from emergencies caused by hurricanes and storms when electricity to households and business are disrupted.
This was the case last year when Hurricanes Frances and Jeanne severely battered parts of The Bahamas.
Residents will also be allowed to import solar panels duty free as a means of encouraging the use of alternative sources of energy.
Considering the number of serious traffic accidents that have happened over the years involving motorcycles and bicycles, the duty on protective headgear will also be eliminated in the new fiscal year. Currently a 35 percent duty is attached on these imports.
Additionally, commercial printing companies will soon be able to pay less when they bring in certain types of printing paper. Duty is being reduced from 35 percent to 15 percent.
Teachers who are importing visual teaching aids will now be able to bring them in duty free instead of paying the present rate of 35 percent.
But Mrs. Pratt also disclosed that the government intends to increase air navigational fees for the Family Islands as a means of defraying the cost of crucial airport upgrades in airports around the country.
She did not reveal precisely what the increases will entail.
The government also intends to implement passenger facility fees at major airports as part of the cost recovery exercise. The fee had also been foreshadowed in the last budget communication.
Some colleagues of Acting Prime Minister classified the fiscal plans, projections and policies as a “good news budget.”
At one point during the communication, House Speaker Oswald Ingraham scolded some visitors in the gallery who were applauding loudly when Mrs. Pratt declared that there would be fiscal prudence and economic progress in the 2005/2006 budget year.
Mrs. Pratt said she dealt only with matters of strategic national importance and various cabinet ministers and parliamentary secretaries will go into detail in their contributions to the budget debate.
By: Tameka Lundy, The Bahama Journal
