NASSAU, Bahamas — Freeport contributed close to $200m in taxes and National Insurance Board (NIB) contributions pre-pandemic despite its reputation as a free-trade zone, a report by the KPMG accounting firm has projected, The Tribune reported on Wednesday, June 9, in an article written by Business Editor Neil Hartnell.
The document, prepared for the Grand Bahama Port Authority’s (GBPA) Revitalisation and Economic Expansion of Freeport (REEF) committee, also estimated that the city contributed some $1.4bn to the nation’s gross domestic product (GDP) — or 10.2 percent of economic output — despite the battering it received from Hurricane Dorian.
“We estimate that for the fiscal year 2018-2019, Freeport contributed approximately $1.4bn in GDP, 10.2 percent of the total GDP of The Bahamas, and $197.1m in government receipts and NIB contributions,” the report, entitled Vision 2025: Planning for a prosperous future, said. “Further, Freeport’s five-year cumulative GDP contribution stands at an estimated $7.2bn, averaging $1.4bn for each of the last five years.
“Freeport’s gross financial contribution to the Bahamian economy, in terms of government taxes and fees, is estimated to be $153.1m plus $44m in NIB contributions. Although the provisions of the Hawksbill Creek Agreement exempt Freeport from certain taxes and fees, there are many taxes and fees that are still assessed and collected in Freeport.”
The report broke the city’s tax contribution down into $61.3m from VAT; $24m in stamp taxes; $20.9m in excise taxes; $18.4m from import duties; and $10.6m in immigration fees as the major sources of government income. The total sum collected was pegged by KPMG at slightly higher than the $143.5m generated for the Public Treasury in 2014, some five years earlier. See complete story in The Tribune at http://www.tribune242.com/news/2021/jun/09/freeport-200m-boost-treasury/
