Proposed tax concessions for Over-the-Hill businesses as the community becomes the first Economic Empowerment Zone in the country.

The initiative was a key component of a White Paper Prime Minister Dr. Hubert Minnis yesterday tabled in the House of Assembly for the Over-the-Hill Community Development Partnership Initiative.

The paper outlines tax incentives and nuances of how the initiative will come together to provide economic relief to inner-city residents.

“Through this initiative, the government of The Bahamas is introducing the concept known as the Empowerment Zone. This concept is well known throughout the world and relates to areas designated because of economic hardship for special incentives.

“It is imperative that the zone ensures good corporate social responsibility, and also that there is a sunset clause,” he said

The Sunset Clause sees to it that Over-the-Hill does not become a permanent zone,”

According to the prime minister, the incentives will apply to residential properties – both owned and rented – as well as commercial and industrial undertakings that have a combined total turnover of $5 million or under.

It also includes enterprises whose primary income does not come from the sale of alcohol or gambling.

For those qualified residents and business owners, with respect to the redevelopment of land and buildings, the proposal is that there be exemption from real property taxes; customs duties, related to construction, equipping and completing buildings and structures for a specified period, excise taxes and stamp tax imposed on real property.

As for businesses in the community, Dr. Minnis said those in the zone will be given a waiver.

“For all applicable businesses, with the exception of those engaged in the restricted activities, and upon obtaining a trade certificate, which will prove that you are located in the zone, you will be afforded a 100 percent waiver of the assessed business license tax,” he said.

“You will also be exempted from customs duties for the purchase of a vehicle for use in your business, with appropriate markings,” Dr. Minnis said.

Dr. Minnis added that the programme will also include support for small and medium sized businesses that build financial literacy in the community while creating opportunities for residents to invest.