NASSAU, Bahamas — The government’s revenue collections increased by over $50 million in the first quarter of the 2022/2023 fiscal year, when compared to the same period in the previous fiscal year, the Ministry of Finance reported last night, The Nassau Guardian reported on Tuesday, November 15, 2022, in an article written by Paige McCartney.
“As a result of the continued rebounding performance in the Bahamian tourism sector, first quarter domestic economic activity continued its rebound to pre-COVID/pre-Hurricane Dorian levels,” the ministry said.
“Year over year, total stopover visitors remain strong as COVID-19 protocols were eased with the elimination of COVID-19 emergency orders, and continuation of many family island market developments.
“Despite the continued impacts of the cost-of-living crisis, tightening financial conditions in most regions, Russia’s invasion of Ukraine, and the lingering COVID-19 pandemic all dampening 2022 global growth projections, growth is estimated to remain positive at 3.2 percent according to recent IMF publications.”
Total revenue for the first quarter, July to September 2022, stood at $654.3 million compared to $596.4 million in the previous period in 2021/2022, an increase of $57.8 million.
Value-added tax (VAT) collections increased from $295 million in the previous period to $331 million, a 11.9 percent improvement.
“Representing 23.4 percent of the budget target, improved first-quarter VAT collections are attributed to improved economic conditions as compared to the year prior during the early stages of the post-COVID-19 economic rebound,” the ministry said.
“Efforts of the reconstituted Revenue Enhancement Unit have also aided in tax administration to support timely tax collections.”
Taxes on goods and services increased by 1.3 percent, stamp taxes on financial and real estate transactions grew by 7.7 percent, gaming taxes increased by 22.2 percent, and motor vehicle taxes firmed by 44.8 percent.
“Improved gaming tax revenue reflects increased activity in the sector, as economic and employment levels improve as compared to the prior year, when COVID-19 emergency orders remained in effect, limiting business activity,” the ministry said. See complete article in The Nassau Guardian at https://thenassauguardian.com/govt-revenue-collections-up-57-8-million/
