NASSAU, The Bahamas — During his Communication on the 2022/2023 Budget, in the House of Assembly, on May 25, 2022 Prime Minister and Minister of Finance the Hon. Philip Davis, spoke on the fiscal performance for FY2021/22, beginning with first nine months of that fiscal year.
Those operational trends to-date provided the basis for our revenue and expenditure forecasts for the upcoming year, and over the medium term, he added.
“During the first nine months of FY2021/22, total revenue increased by $617.6 million or percent to $1,847.3 million, as compared to the previous year,” Prime Minister Davis said.
“This largely reflected improvements in tax revenue of $526.4 million or 50.9 percent, andnon-tax revenue increases of $90.9 million or 46.5 percent,” he added.
Prime Minister Davis pointed out that the key developments underlying revenue performance were as follows:
- Property Taxes increased by an estimated $9.8 million to $96.6 million
- Notwithstanding the reduction in the nominal rate of VAT from 12 percent to 10percent in January 2022, VAT receipts increased by $366.3 million or 78.0 percent to $836.1 million over the nine-month period
- Excise taxes were estimated at $46.2 million
- Gaming taxes improved by $21.0 million to total $37.5 million.
“Taxes on international trade and transactions broadened by $183.5 million to $346.6million and 83.1 percent of budget,” he said. “The improved trade tax performance is largely explained by increases in customs and other import duty collections of $46.7 million to $180.9million; and Improvements in departure tax collections of $42.8 million to $48.7 million.”
Prime Minister Davis pointed out that revenue from the sale of goods and services rose by $58.7 million to $170.5 million. Increased revenue collections were attributed to increases in immigration related receipts of $43.6 million to $99.8 million; and Customs fee collections increased by $8.7 million to $36.9 million, and 61.5 percent of budget, he added.
Prime Minister Davis said that, during the nine-month period of the FY2021/2022, outlays for recurrent expenditure expanded by $80.7 million or 4.2 percent to total $2,021.5 million as compared to the same period in the prior year — representing 70.2 percent of the targeted spend.
“Compensation of employees increased by $24.4 million to $538.3 million largely owing to the resumption of promotions, staff reclassifications, payment of increments and other employee costs which were delayed in the past year,” he said.