Small businesses, which are the drivers of our country’s economy but have been struggling in recent years, will have more fees added to their operational costs as of July 1 in the new 2015/2016 Budget. When businesses have to pay more, THEN WE END UP HAVING TO PAY MORE FOR GOODS & SERVICES. And the harder it is for businesses to stay afloat, the more likely they are to close their doors or lay off staff. NEW FUEL & CUSTOMS FEES are also coming our way. HERE ARE THE DETAILS:
SMALL BUSINESSES – It will now be mandatory that businesses at the $100,000 turnover threshold have their filings certified by an independent accountant. Officials say this will cause those businesses to see their business license fee expenses double.
NEW FUEL SURCHARGE – A new fuel surcharge of 1 cent per gallon will be levied on all imported fuel except aviation fuel.
LATE FEES FOR BUSINESS LICENSE FEE FILINGS & PAYMENTS – Penalties will now be levied for late filing and late payment as follows:• Late filing – $100.00,• Late notification of inactivation or cessation of Business – $100.00 • Late payment – 10% of tax liability.
NEW CUSTOMS FEE – A new customs security fee of $10.00 per twenty-foot equivalent unit on all containers imported and exported from the Bahamas will be charged.
NEW CUSTOMS FEE – A new security fee of $10.00 on all motor vehicles imported to or exported from The Bahamas will be charged.
PAYMENT OF TAXES AND FEES – An order of priority will now be set on which taxes owed to the government are to be paid. First to be paid are penalties, the second are fines, the third interest or surcharge and fourth any outstanding taxes. The taxes should be paid in the following order: (1) Business Licence Act, (2) VAT, (3) Stamp Act (4) Customs Management Act, (5) Real Property Tax Act.
NEW LATE FEES FOR ACCOUNTS – The Customs Management Act, Passenger Tax Act and the Port Authority Act will all now levy a late fee of 10% of tax liable for outstanding amounts over 30 days.
HARDER TIMES AHEAD FOR MANY OF US.