Revenue Collection Down, Says Bahamian Central Bank

by Amanda Banks, Tax-News.com, London

07 November 2002

In its latest Quarterly Economic Review, the Central Bank of the Bahamas announced that reduced revenue collection helped to contribute to a substantial deficit during the first 11 months of fiscal 2001/02.

'The fiscal situation remained adversely affected by the sluggish economy,' the bank observed, citing customs and tourism-related taxes as sectors which had shown substantial slippage.

According to the latest available indicators, overall revenue collection was broadly reduced by 1.7% to $784.8 million - which included a 10.0% drop in tax receipts - while total expenditure over the 11 months in question grew by 1.7% to $883.8 million.

The Central Bank's Quarterly Report concluded that although the weakness in the Bahamian economy dissipated significantly since last year's external shocks, 'provisional estimates for the second quarter of 2002 still suggest a comparative decline in activity relative to the same period of 2001, but in the continuing context of mild inflation.'

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