Taxes and Fees - 2013/2014 Fiscal Year

7/22/2019 Taxes and Fees - 2013/2014 Fiscal Year

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Annex C

REVENUE MEASURES

Fiscal Year 2013/2014

Item

No.

Description Existing Rate Proposed RateEffective

Date1 Bring into force the new

Customs Management Act andRegulations.

Jul 1, 2013

2 Bring into force the New TariffAct.

Jul 1, 2013

3 Eliminate the $10.00 stamp taxlevied on Customs entries andintroduce a 1% Customsprocessing fee. Introduce aprocessing fee for manifest andother declarations for inbound

and outbound aircrafts andvessels.

No processing fee. 1% of the value of entriessubmitted to Customs subject toa minimum of $10.00 andcapped to a maximum of$500.00.

Jul 1, 2013

4 Customs Duty on vehicles to bebased on value rather thanengine size.

Vehicles with engine size2000 cc and under, a rate of65%;

Vehicles with engine sizegreater than 2000cc butsmaller than 2500cc, a rateof 75%; and

Vehicles with engine size

greater than 2500 cc, a rateof 85%.

Duty based on value of vehicle:

Under $10,000:65%;

Over $10,000 but less than$40,000:75%; and

Over $40,000:85%

Jul 1, 2013

5 Reduction of duty on electricmotor cycles.

75% 65% Jul 1, 2013

6 Reduce the duty on inverters forsolar panels.

45% Free Jul 1, 2013

7 Reduce the duty on solarpanels.

10% Free Jul 1, 2013

8 Reduce the duty on solarpowered air conditions.

10% Free Jul 1, 2013

9 Reduce the duty on shakes(shingles).

45% 7% Jul 1, 2013

10 Reduce the duty on bed pads. 40% Free Jul 1, 2013

11 Reduce the duty on urinarybags.

45% Free Jul 1, 2013


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Annex C

REVENUE MEASURES


Item

No.Description Existing Rate Proposed Rate

Effective

Date

12 Reduction of duty on incubators

and isolators (Tariff Heading9403.5010).

35% Free Jul 1, 2013

13 Reduction of duty onDefibrillators.

35% Free Jul 1, 2013

14 Creation of a new TariffHeading for the LED LightFixture in Chapter 94.

35% Free Jul 1, 2013

15 Introduce an EnvironmentalLevy on specific Items.

No levy charged . Various fees depending on theItem.

Jul 1, 2013

16 Increase in Customs StorageFees for cars.

$30 per week $50 per week Jul 1, 2013

17 Introduce a Customs LicenceFee to be collected from privatestorage facilities.

Customs to collect 25% of thestorage fees collected by theshipping agents.

Jul 1, 2013

18 Eliminate bonding tax. 10% Bonding Tax collectedevery 90 days.

No Bonding Tax collected. Jul 1, 2013

19 Adjustment in Customs andImmigration Service Charges.

Charges are currently forafterhours (5pm) servicesprovided to airlines andships, per officer deployed

and based on the rank ofeach officer.

A unified rate structure, to bebased only on the number ofofficers deployed. Cargo shipsand cargo aircrafts to be

assessed the charges at all hoursof deployment. Passengeraircrafts and ships continue to beassessed charges after 5pm only.

Jul 1, 2013

20 Switch duty rate from advalorem to specific forcigarettes and cigarillos.

220% of value $0.15 per stick Jul 1, 2013

21 Adjust the excise rate applied tocigars.

220% $0.50 plus 220% Jul 1, 2013

22 Increase the duty on electroniccigarettes.

Free 45% Jul 1, 2013

23 Introduction of an ExciseStamp Control Act.

No stamp required uponimportation of Tobaccoproducts.

Stamp required uponimportation of Tobaccoproducts.

Sep 1, 2013

24 Increase the Excise Duty onManufactured Spirits.

$6.00 per gallon $8.00 per gallon Jul 1, 2013


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Annex C

REVENUE MEASURES


Item


Effective

Date

25 Increase the stamp duty on

Imported spirits.

$11.00 per gallon $15.00 per gallon Jul 1, 2013

26 Removal of Excise Duty leviedon fuel imported for powergeneration.

10% Free Jul 1, 2013

27 Amend the Real Property TaxAct so that the mortgagee ofcommercial properties isresponsible for the payment ofoutstanding real property taxesoutstanding over 90 days.

Jul 1, 2013

28 Increase Building Permit Fees

and introduce new fees.

Various rates Various rates Jul 1, 2013

29 Increase in Police Departmentfees including gun licences.

Various rate Various rates Jul 1, 2013

30 Increase international banks andtrust companies fees.

Various rates Various rates, in two incrementsover two years.

Jul 1, 2013

31 Introduce a new schedule forBusiness Licence Fees andeliminate all special categoriesof rates, except for financialinstitutions and stand-aloneretail gas stations.

Various rates Turnover over $500,000 -$5M:0.75%

Turnover of $5m - $50M:1.25%

Turnover of $50M -$100M:1.5%

Turnover greater than$100M:1.75%

Jul 1, 2013

32 Domestic Financial Institutions(institutions that deal with B$accounts) excluding creditunions and insurancecompanies Business LicenceFees to be based on GrossRevenue.

No business licence feeassessed for commercialbanks.

Business Licence Fee is 3% ongross revenue.

Jul 1, 2013

33 Remove the exemption of thepayment of Business LicenceFees for GovernmentCorporations.

Government entitiesexempted from the paymentof Business Licence Fees.

Government entities required topay Business Licence Fees.

Jul 1, 2013


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Annex C

REVENUE MEASURES


Item


Effective

Date

34 Amend the Business Licence

Act so that the subsidiaries of acompany are charged the samerate as the parent company.

Business Licence Act

contains no anti-avoidanceprovisions.

Subsidiaries of a company are

charged the same rate as theparent company.

Jul 1, 2013

35 Amend the FinancialAdministration & Audit Act togrant the Minister of Finance byOrder the ability to determinethe frequency of payments forany tax or fees and theimposition of any surchargesfor late payment.

No standard provision fortiming of the receipt oftaxes and no standardprovision for the impositionof penalties for late receipt.

Standard provision to assistrevenue administration is nowincluded.

Jul 1, 2013

36 Amend the Passenger Tax Actto be consistent with thepractice for airlines whichcharge taxes on all passengers.

All departure tax collectedby airlines are notautomatically remitted tothe Government. The tax isonly assessed and collectedfor passengers of 6 years ofage and over.

All departure tax collected byticketed passengers would beassessed and remitted to theGovernment.

Jul 1, 2013

37 Amend the Passenger Tax Actso that children under the age of12 are given the $300.00exemption on return to TheBahamas.

Children under the age of12 are not given theexemption on return to TheBahamas.

Children under the age of 12given the exemption on return toThe Bahamas.

Jul 1, 2013

38 Amend legislation to allowsurplus funds in statutoryagencies to be deposited in theConsolidated Fund.

No provision for surplusfunds to be deposited in theConsolidated Fund.

Provision included in legislationestablishing statutory bodies.

Jul 1, 2013

39 Amend the Stamp Tax Act sothat stamp tax is collected frommarina slips operating under acrown land lease arrangement.

Sale or lease of marina slipsnow exempted from stamptax.

Sale or lease of marina slips isnow subject to stamp tax.

Jul 1, 2013

40 Amend the Stamp Tax Act sothat stamp tax is applied when

dividends or profits arerepatriated out of the country byinternational companies.

Stamp tax is applied 1.5%when B$ funds are

converted for arerepatriation out of TheBahamas.

Stamp tax to be applied at 5.0%percent when B$ dividends or

profits are repatriated out of TheBahamas.

Jul 1, 2013

41 Remove the Stamp Tax fee onelectronic banking payments.That is, e-commerce transfersand point of sales payment byDebit Cards.

40 cents Free Jul 1, 2013


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Annex C

REVENUE MEASURES


Item


Effective

Date

42 Extend the Stamp Tax

exemption granted to first-timehome owners for a further fiveyears (Jul 2013 - June 2018).

First time home owner

exemption ends on 30thJune 2013.

First time home owner

exemption extended to the 30thJune 2018.

Jul 1, 2013

43 Extend the Family IslandDevelopment EncouragementAct for one year.

Family Island DevelopmentEncouragement Act expiresJune 30th 2013.

Family Island DevelopmentEncouragement Act extended forone year.

Jul 1, 2013

44 Extend the City of NassauRevitalization Act for one year.

City of NassauRevitalization Act expiresJune 30th 2013.

City of Nassau RevitalizationAct extended for one year.

Jul 1, 2013

Taxes and Fees - 2013/2014 Fiscal Year

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