2020/21 Budget Communication 2020-21 Budget Communication - Final (1)-compresse | Page 17

c. Tax Relief Measures
Mr. Speaker,
As one would imagine, the scope for significant tax reductions is marginal in a situation such as
the one in which we find ourselves. Nonetheless—and consistent with specific policy priorities—
we do propose the reduction of taxes in a few targeted areas. Although pressed to take a
conservative approach to Government revenue taxes, we are delivering a guided and focused
package of relief measures and incentives.
A full schedule will be published detailing the items to be included in all of the listed categories.
However, here are some of the key elements:
● For the agriculture and fisheries industry, we will reduce the duty on fishing materials
from 45 percent to 20 percent, effective July 1, 2020. Some of these items include:
Fishing rods, reels, lines, tackles and other materials.
● We are also reducing the duty on farming equipment for the use of backyard farming
from 25 percent to 10 percent. Some of the items included in this package are spades and
shovels, work benches, machetes and hedge shears.
● In an effort to spur construction activity, and thereby mobilize domestic capital, we are
reducing the duty on all building materials to 20 percent. This includes but is not limited
to: wood, glass, granite, steel, electrical supplies and fixtures, carpet, landscaping
material and plumbing materials.
● To support the ongoing Hurricane Dorian Recovery, we will extend the Special
Economic Recovery Zone (Relief Order) 2019 to December 2020 in the first instance,
which will include all concessions currently available to the qualifying islands. For the
period January 1, 2021 to June 30, 2021, the concessions will be extended to cover
building materials only. Let me repeat: Abaco and Grand Bahama will continue to enjoy
the current VAT and duty exemptions through the end of the year.
● We are removing the duty from Nitrile Examination Gloves (antibacterial gloves), which
are used as Personal Protective Equipment (PPE) to make it less costly for hospitals,
companies and individuals to acquire these. For a period of one year, we will remove
the duty on other PPE items, such as gowns, and other surgical supplies, to ensure our
healthcare workers, both private and public, are protected as we continue to fight this
pandemic.
● We are expanding the tax-free transfer of land where there is no change in beneficial
ownership, with the approval of the VAT Controller.
● We are also reducing duty on a few items to further encourage the adoption of more green
technologies and plastic elimination, including duty reductions on environmental sea
trash cans to assist in oceanic conservation and reusable metal water bottles from 45
percent to 10 percent; and duty reductions on motorcycles with an engine size of 125 cc
or less and electrical motorcycles; from 75 percent to 10 percent. Off-road motorcycles
will not be included in this rate reduction.
● And finally Mr. Speaker, we are pleased to announce that for the first time, the
Government will provide for a ‘back-to-school’ VAT holiday on school supplies,
clothing and select food items for the two-weeks leading to the reopening of schools,
17