business@tribunemedia.net
FRIDAY, JULY 7, 2023
$5.60
$5.63
$5.75
Atlantis braces for $14m hit from BPL’s fuel hike By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Atlantis is predicting it will take a $14m hit this year from Bahamas Power & Light’s (BPL) hiked fuel charges but remains hopeful this will be minimised by higher visitor spend and room rates. Vaughn Roberts, the Paradise Island resort’s senior vice-president of government affairs and special projects, told Tribune Business that management is “paying close attention” to energy costs and multiple expense lines given the continued pressures exerted by “local and international inflation. Describing BPL’s cost increases as “very significant”, with Atlantis also
* Hopes rate, visitor spend rise will offset * Some $300m-$400m upgrades since ‘17 * Seeks savings on $100m Beach Towers
having to “adjust wages to market conditions” and incorporate a minimum wage rise that took effect on New Year’s day, he added that the resort industry had “lobbied as hard as we could” for an alternative to address the state-owned energy monopoly’s fuel charge under-recovery but without success. “We have estimated the fuel charge impact to us is $14m on an annual basis,” Mr Roberts told this newspaper. “It’s definitely a real cost, but we lobbied as hard as we could as an industry. I guess there was nothing that can be done....
“Obviously we pay close attention to cost increases. The BPL increase is very significant for us. There’s an upcoming National Insurance Board (NIB) [contribution rate] increase. All these things add cost, and we’ve had to adjust wages to market conditions, but on food supplies and operating costs, because we’ve had such strong growth in ADR (average daily room rate) and spend per occupied room, the business has been able to absorb some of these cost increases.” The $14m hit to Atlantis’ electricity costs give an insight into the fill economic
Boat registration fee hikes ‘not a tax grab’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
The significant hikes in boat registration fees are not designed “as a tax grab”, the New Providence Port Authority’s chairman asserted yesterday, adding that the new regime will be a “game changer” for compliance and competitiveness. Tavares LaRoda told Tribune Business that the increases to fees that have not been adjusted for two decades were designed to try and catch up with, but not exceed, inflation that has occurred over that period as the Government seeks to incentivise more boat owners to register their vessels in The Bahamas.
* Port chair: New regime to boost competitiveness * Inspections regime at odds with maritime standing * Tax elimination ‘game changer’ for private vessels
Outlining the Davis administration’s strategy, amid major social media outcry over both the first-time and annual registration fee increases, he argued that the hike in the former category was more than offset by the elimination of an effective 20 percent tax rate on boat owners importing SEE PAGE B5
Brewery wins $1.156m Business Licence fight By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Commonwealth Brewery says it has “successfully challenged” a $1.156m tax demand from the Government and is now awaiting the authorities’ next move. The vertically-integrated, BISX-listed brewer, wholesaler and retailer detailed its arbitration win over disputed Business Licence fees relating to stock transfers between different group entities in its just-released 2022 annual report. “As of December 31, 2022, Commonwealth Brewery and its group of companies were contingently liable to the Department of Inland Revenue upon assessment of intra-company stock transfers between its subsidiaries for Business Licence purposes,” management informed shareholders during an analysis of its 2022 annual results. “The group was assessed $596,003 in 2016 and $560,403 in 2017, which required the issuance of a bank guarantee. The company successfully challenged the matter in arbitration and is currently awaiting further response by the Government of The Bahamas.” This effectively means that the ball is in the Government’s court, and itself - along with the Department of Inland Revenue - must make the next move. No further details were provided on the arbitration proceedings, and it appears likely that the bank guarantee was required to provide the Government
with certainty that the tax liability would be paid if it was successful. The guarantee was said to have been “issued pending the outcome of arbitration” and “the matter is still pending as of the date of issuance”. Elsewhere, the BISXlisted brewer warned that cost increases and inflation generally will continue to challenge margins, profits and its overall business. “2023 will be another challenging year, as we will continue to face higher costs and inflation across our operations. We will address these challenges by leveraging our commercial programmes, tools and capabilities, while maintaining investments and our objective of driving sustainable, profitable growth,” it added. Julian Francis, Commonwealth Brewery’s chairman, and a former Central Bank governor, said 2022 saw the company generate its highestever revenues since it became a public company in 2011. “The 15.6 percent improvement in Commonwealth Brewery’s gross revenue to $135m exceeded the company’s 2018 performance, which had been the highest since the company’s public debut in 2011,” he told investors. “The result reflects the Bahamas’ underlying economic expansion as well as Commonwealth Brewery’s ability to maintain a commanding position in the beverage sector, which is impressive considering the number of significant
SEE PAGE B7
Atlantis senior vice-president of government affairs and special projects Vaughn Roberts. impact of BPL’s fuel charge hikes as they hit their peak increase compared to October 2022 - the last month before they began their phased rise. Between June and August 2023, BPL’s
A North Andros hotel yesterday voiced hope that “at least 85 percent” of visitors scheduled to attend this weekend’s postponed homecoming will still come out when it is held later this month. Neliscia Burrows, the Conch Sand Hotel’s general manager, told Tribune Business that the sector was hoping losses will be minimal after the All Andros and Berry Islands Homecoming Jubilee Celebration was postponed due to the
Gov’ts ‘too lenient’ over tax-dodging supporters By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Previous administrations have been “too lenient” on tax dodging supporters, a small business adviser has asserted, while warning: “The Government ain’t playing around no more.” Mark A Turnquest, the 242 Small Business Association’s founder, told Tribune Business in a recent interview that several of his clients were moving to either settle or negotiate payment plans for tax arrears after the Government unveiled several enforcement strat-
fuel charge is scheduled to be some 163 percent above October 2022 levels, which means it has more than doubled just when summer consumption is at its peak SEE PAGE B6
North Andros hotel hopes for 85% regatta retention By Fay Simmons Tribune Business Reporter jsimmons@tribunemedia.net
$5.62
loss of Bahamas Power & Light (BPL) electricity supply in the blaze that destroyed the utility’s generation assets. She said: “I would hope that the majority of the people would still come out to the regatta. Because I know, like all of the hotel owners, the taxi cab drivers, the airlines, people who have local restaurants, bars, the fishermen.. everybody’s impacted by the regatta.” “This is the busy season for North Andros, so I would hope that at least 85 percent of those people would still come out and look forward to having SEE PAGE B4
Mark A Turnquest egies targeted at VAT, real property tax and Business Licence non-compliance. While the tax authorities have yet to be “overly aggressive” in demanding what is due, he disclosed he is advising them to be “honest, open and lay everything on the table” regarding sums owed, ability to pay and their company’s current circumstances when talking to the Department of Revenue (DIR) And Mr Turnquest also disclosed to this newspaper that he is warning SEE PAGE B8