2019/20 Budget Communication Final Budget Communication | Page 34

our revenue efforts, we are cognizant to consider both the vulnerabilities in our country and the
citizens that are most affected by these vulnerabilities, as well as the necessary action that will
garner the resources we require. Though striking a balance between the two can prove challenging,
at times, we are, and will remain committed to putting Bahamians first as we work to better this
country.
In this vein, the fiscal measures in the 2019/20 budget provide tax relief, while others
are more administrative in nature. Yet, still, some measures aim to enhance the environment, with
the remainder intended to shore up revenue.
I now turn to a thorough outline of each of these targeted measures; the full details of
each measure can be found in the Annex to this Communication.
i.
Tax Relief Measures
We have proposed a number of tax relief measures to provide some reprieve to all
citizens and to encourage economic activity by making the import of certain items relatively
cheaper, thereby making it comparatively easier for persons to enter existing markets and in some
cases, create new ones. The tax relief measures included in this Budget include:
Duty reductions worth $28 million in revenue. In an effort to rebalance the tax burden
between the provision of goods and services and reduce the attendant distortionary
impacts, we are beginning to make good on our commitment to reduce duty and excise
rates over the next three years. To that end, we will, at this time, adjust the duty on
selected frequently imported items. Generally, the focus of these reductions is around
educational supplies and equipment, and household implements and goods. These
items include:
o Home Refrigerators of 18 cubic feet or smaller (to become duty free)
o Home Stoves that are 30 inches wide or smaller (to become duty free)
o Garbage Can Liners (from 45 percent to 25 percent)
o Fire Extinguishers (from 45 percent to free)
o Flashlights (from 45 percent to 25 percent)
o Pens (from 10 percent to free)
o Pencils (from 10 percent to free)
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