NASSAU, BAHAMAS — The government yesterday revealed that its total revenue from July to December declined by $430 million, 38.1 percent of the budget target, due to the imposition of more restrictive COVID-19 measures and slower-than-anticipated economic recovery.
According to the combined first six months’ fiscal snapshot and report for July to December released by the Ministry of Finance last night, the imposition of more restrictive COVID-19 measures in the opening quarter of FY2020/21 and the slower-than-anticipated recovery of economic activity in the ensuing months dampened revenue collections for the first half of fiscal year 2020/21.
“Compared with the corresponding period of fiscal [year] 2019/20, total revenue declined by an estimated $430 million (39 percent) to $671.4 million, which constituted 61 percent of the prior year’s collections and 38.1 percent of the budget target,” the report read.
“Developments were largely driven by sharp contractions in receipts from value-added taxes (VAT), excise taxes, customs and import duties and departure taxes.”
The report noted that taxes on goods and services, which remains the largest component of tax revenue at 77.2 percent, decreased sharply by 39.2 percent to $439.9 million.