2019/20 Budget Communication Final Budget Communication | Page 19

Mr. Speaker,
Evidence of this progress is further apparent in the reform of our major revenue
administration agencies: the Department of Inland Revenue and the Department of Customs. It is
well known that there is leakage in Government tax revenue as a result of inefficiencies, alongside
weak controls against fraud and corruption. It is our view that everyone should pay their fair share
and that means we are putting taxpayers on notice who have been taking advantage of our
inefficiencies to cheat and circumvent the system and avoid paying their fair share. Changing the
status quo requires the Government to be better at tax administration and collection. That means
the Government needs better data to make data-driven decisions about tax policies; and more
seamless processes to make it easier for taxpayers to comply.
Earlier this month, the government announced the complete revamp of the existing
antiquated Real Property Tax system. Starting with a massive data collection initiative that will
update the real property register, the first phase of this project is expected to add as many as 9,000
unregistered properties to the tax roll. It will bring fairness and transparency to the property
valuation process by establishing objective, local and internationally accepted measurements that
are critical for property tax assessments. Eventually, there will be a public, online database of
property values for tax purposes.
The net result of this enforcement exercise is an anticipated annual boost of $21 million
in real property tax collections. This phase of the project will create up to 40 jobs for Bahamians
and will last approximately 18 months. I am advised that training would have begun this week,
with the field work expected to commence next week.
Mr. Speaker, it is important to note also that this project falls largely in line with the
Government’s broader initiative to digitize government systems to allow for more accurate and
frequent reporting, less bureaucracy and more efficiency.
In the Customs Department, the work is well underway in the Customs Modernization
Programme, most notably the introduction of the Electronic Single Window that has been dubbed
‘Click2Clear’. This new Click2Clear platform, which is being rolled out in phases, will bring the
Bahamas in line with best in class customs clearing processes, allowing a person or company to
18