Prime Minister of The Bahamas, the Rt. Hon. Perry G. Christie, officially opened the World Customs Organization IT Conference and Exhibition at Our Lucaya on Wednesday. Also shown from left are: Charles Turner, comptroller of Customs; Dr. the Hon. Michael Darville, Minister for Grand Bahama; and Kunio Mikuriya , Secretary General, World Customs Organization.
(BIS Photo/Vandyke Hepburn)
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FREEPORT, Grand Bahama
- Prime Minister of The Bahamas and Minister of Finance, the Rt. Hon. Perry
Christie said government must diversify its revenue sources, during the opening ceremony of the World Customs
Organization IT Conference and Exhibition at Our Lucaya on Wednesday, May 6.
"Customs
administrations worldwide play a key regulatory role in their countries. The
Bahamas is no different with Customs contributing significantly to revenue
generation in the course of border protection. In the case of economically
advanced countries however, the role of Customs has shifted from being
primarily responsible for revenue collection to one focused on border
protection and control.
"The Bahamas has
relied heavily on import duties and taxes as a source of revenue like many
other Small Island Developing States and
small vulnerable economies, to fund government expenditure for public goods
including education, health, social security, and of course public sector
salaries.
"Direct Customs
duties and taxes account for approximately half of the total revenue collected
by The Bahamas Customs and Excise Department, which translates into
approximately 25% of total government revenue. As I have stated in other forum,
this situation is not sustainable. Global economic realities dictate that the
government must diversify its revenue sources.
"We have
implemented the economic partnership agreement (EPA) as part of the Caribbean
Forum with the European Union, which requires Customs duties and taxes on a
broad range of products to be reduced in the coming years. The ongoing
CARICOM-Canada negotiations to liberalise trade will no doubt lead to a
reduction in tariff rates even further."
Prime Minister
Christie further stated, "In addition the government of The Bahamas has
commenced the accession process to the World Trade Organization. WTO obligations
will require further commitments on our part to reduced reliance on Customs
duties and taxes.
"It is clear that
the trend for direct Customs duty and tax rates is downward. Without alternative sources of revenue the
Government of The Bahamas could inevitably face significant revenue
challenges."
On January 1, 2015, as
other small economies have done, the government introduced Value Added Tax.
Stating the government recognizes the importance of improving the revenue
collection capabilities for the existing taxation areas, the Prime Minister
added that raising revenue is not just about introducing new taxes.
The government's
efforts in collecting revenue is very consistent with the theme of the
conference, "Inclusiveness through Information Technology." He said, "It is in our interest here in
The Bahamas to pursue an inclusive approach to the introduction of the new IT
systems. These new systems must bring benefits, not only to government, but
also to commercial operators and to the general public who will use these
services."
Said the Prime
Minister, "This, aggressive drive for automation of course includes the
Bahamas Customs and Excise Department, which, even with the decline in direct
Customs duties, will continue to be a very significant revenue collection agency.
The investment, by the Government of The Bahamas, in Trade Sector Support
Programme, funded by a loan from the Inter-American Development Bank indicates
the level of importance we place on having a modernized and efficient Customs
administration."
With the programme in
full swing the WCO Conference and Exhibition could not have come at a better
time, he said. The Bahamas Customs and Excise Department will have the
opportunity to share ideas with and gain knowledge necessary for operating in a
modernized Customs environment.
"Of course this
conference is not just about The Bahamas. It is an international conference,
which provides a great opportunity for participants to discuss strategies and
share ideas on an important topic which can have a profound impact on
international trade."
With representatives
from over 75 countries, the Prime Minister welcomed the group and said he hoped
they enjoyed their beautiful surroundings. Once it was clear that the World
Customs Organization had chosen The Bahamas for the global conference, he had
the possibility of it being held in Freeport looked into.
"It is no secret
that the countries of this region have suffered significantly from the global
economic crisis. Recovery from the crisis has been slow. The Bahamas is now
showing signs of sustained recovery. My government wants to ensure that this
recovery is felt all throughout The Bahamas.
"The hosting of
this WCO event, which is quickly following on the heels of the very successful
IDB Caribbean Governors Meeting, is one example of the government's commitment
to bringing business opportunities to Grand Bahama."
Consisting of 179
member administrations, the World Customs Organization is recognized
internationally as a driving force of international trade facilitation.
"Delegates will
recall that the WTP concluded negotiations on a Trade Facilitation Agreement at
the Bali Ministerial Conference, in December 2013.
"A subsequent
study conducted by the Organization for Economic Cooperation and Development
(OECD) concluded that implementation of this agreement, even on a partial basis
could result in the reduction in international trade costs of approximately
12%."
The WTO Trade
Facilitation Agreement, he said, owes a lot to the technical work already
carried out at the World Customs Organization.
With Freeport being
the host country, said the Prime Minister, the island is in distinguished
company with the conference having been held in places such as Brisbane,
Australia; Dubai, United Arab Emirates; Johannesburg, South Africa and Seattle,
USA.
Prime Minister
Christie told the delegates that Grand Bahama has a lot to offer in terms of
commercial activity and tourism:
* a 240 square mile Free zone area,
which is always open for new business;
* a major container port, which as
the capacity to handle the largest container ships, including the new
mega-ships;
* a pharmaceutical plant and other
light manufacturing facilities;
* The Grand Bahama shipyard with its
ship repair facilities; and
* Oil refining and bunkering
facilities.
"These are just a
few examples of the great business potential here in Grand Bahama. Ladies and
gentlemen, apart from business opportunities we have fantastic tourism products
available, not only here in Grand Bahama, but throughout the entire country of
The Bahamas."
He encouraged those in
attendance to sample the tourism products available on the island and
recommended the Rand National Park and Peterson Cay National Park. If staying a
while, he said they could dive or golf and if they don't have the opportunity
to see what Grand Bahama has to offer on this occasion, they are certainly
welcome to come back.