FY2022 / 2023 BUDGET COMMUNICATION 7
lated in the past three years .
» During the first half of the new fiscal year , legislation will be brought to this Honourable House to amend and improve The Public Procurement Act , The Fiscal Responsibility Act and The Public Financial Management Act . In previous communications , I have reported to the House on the many deficiencies contained in these hastily-enacted pieces of legislation . Work is already well underway , and the proposed reforms will be brought soon .
» We have reduced the rate of VAT from 12 percent to 10 percent across the board . We can already see signs that it is having the desired effect , which is to reduce the overall tax burden . When Bahamians purchase meat , vegetables , fruit , poultry , fuel for cooking or transportation , we now pay VAT of 10 percent rather than the previous 12 percent . We had hoped that the reduction from 12 to 10 percent across goods and services would be experienced as real relief for Bahamians . Unfortunately , a very rapid rise in global prices coincided with this new measure ; we are very aware it is hard to experience relief from a tax cut when underlying prices are high and rising and life feels so unaffordable .
Overall , the changes to VAT have been good for The Bahamas ; for example , the fast-food franchises and hotels had been the biggest beneficiaries of zero-rated bread – now the country is earning much-needed revenue from those sources .
Continuing the list of achievements from the promises made in the Speech from The Throne :
» As you will soon hear , work has already begun to increase the share of renewable energy in the country ’ s energy mix to achieve the target of 30 percent reliance on renewables by 2030 .
» When the Minister of Works brings his contribution , the House will also hear how work is already progressed well to improve and introduce new Building Code standards , in order to provide greater resilience to climate change .
» As a matter of priority , we have already accelerated investments in the agricultural sector to improve food security and reduce our reliance on imports , a point that the Minister of Agriculture will further expand upon during his contribution .
Other notable goals already fulfilled from the Speech from The Throne also include :
» We have improved relations with international partners and now have a fully crafted trade policy and strategy to increase trade opportunities .
» Our Diplomatic Corps has been strengthened , and The Bahamas is already benefiting from the appointments of new cultural and trade ambassadors .
Madam Speaker :
» We have already re-launched our “ Sports in Paradise ” initiative to diversify our tourism product , and have already secured a pipeline of sporting events such as the Babe Ruth Caribbean Championships .
» Senior citizens are already enjoying the benefit of increased pension support , which has been augmented to allow for increases in the cost of living .
» We have also enhanced access to housing with the construction of new homes in New Providence , and new homes in Abaco are on the way .
» Improved training and better career opportunities are already being made available to members of the public service , which is enhancing and streamlining service delivery for the benefit of the public .
» We are also putting into practice our commitment to “ inclusive governance ”. As an example , just two weeks ago I hosted the first Business Roundtable , with key business leaders from various sectors of the community .
Added to all this Madam Speaker , there is new hope on the horizon for Grand Bahama .
» An agreement has been reached for the sale of the Grand Lucayan Hotel for $ 100 million . The renovations are estimated at $ 300 million and once completed , the project promises to provide 2,000 construction jobs and approximately 1,000 permanent jobs .
» Ground has also been broken for the construction of a new cruise port in Freeport , at an estimated cost of $ 200 million , that will make it easier to transport many more visitors to the shores of Grand Bahama .
» And , Madam Speaker , the Public Private Partnership or PPP process is underway for the redevelopment of the Grand Bahama International airport , which was abandoned and left to rot since Hurricane Dorian almost three years ago .
Madam Speaker : The achievements of these last eight months are just the beginning . We know how many Bahamians are hurting . We know how many families are depending on change and progress .
We ’ re only getting started .
» Legislation which has already been enacted , to allow The Bahamas to monetize its natural resources in the form of carbon credits .
» The Merchant Shipping Bill which has been enacted , and is already leading to improvements in the sector .