By TAMARA McKENZIE

Guardian Staff Reporter

The proposed Bill for an Act to Amend the Passenger Tax Act is geared to facilitate a more effective and efficient collection of revenue in The Bahamas, as the country is $60 million behind in its projected revenue for the accounting year July - October.

"If one compared the period up to the end of September 2002, with the preceding accounting year, we are $17 million behind on revenue collection than the preceding year," said Prime Minister Perry Christie, who was speaking in the House of Assembly on Wednesday about the Passenger Tax Act.

The Prime Minister said the Amendment to the Act, along with other acts that will be amended, are part and parcel of an effort made to streamline and enhance the country's ability to more efficiently and effectively collect taxes, while contributing to the revenue of The Bahamas.

According to the Prime Minister, the country is now spending over $1 billion dollars, in which Parliament has approved a budget for expenditure over $1 billion, with a deficit that was projected at $186 million. He therefore stated that the existing revenue does not match the amount of money that the government had planned to spend.

"This government has been trying to run a very tight ship and are holding the reigns as best we can on expenditure, all with the view to ensuring that we exercise fiscal prudence in the context of the times that we now live," said the Minister of Finance.

The Passenger Tax Act will allow the $15 departure tax that is required to be paid by all international travelers at the Nassau International Airport, to be incorporated into the total price of a ticket.

The Prime Minister said revenue officials have informed the government that an estimate of monies not collected, but what are due to the government from such taxes, amount to some $10 million annually. He noted that the incorporation of the $15 departure tax into the price of a ticket, had been discussed with airlines for some three years, in which several written communications have been given to the government, which led to the amendment being presented to Parliament.

The Prime Minister also mentioned that requirements would be put in place for how long it will take for airlines to present ticket tax to the government. He said that in regards to the $7.00 ticket tax, a period within 30 days have been established for funds to be provided to Bahamas Customs, while funds generated from the $15 passenger tax, has to be given to Bahamas Customs, within 10 days of its collection.

"This is suppose to be and is intended to be a revenue enhancing matter and we must continue to work assiduously at the collection of revenues at the stemming of leakage and to plug up all the holes that exist. There is a lot we can do, and a lot we can be doing to collect revenue that is due to the government, as too much smuggling is taking place in the country," charged the Prime Minister.

The Prime Minister further explained that an amendment exists in the Bill to refund the ticket and departure tax to an individual if travel is canceled.

The Prime Minister also indicated that accounting and auditing procedures are in the process of being considered, to ensure that the government is able to improve its ability to collect taxes that are due by entities that escape paying such fees.

"There is simply the question of basic inefficiency. Out and beyond the stealing and smuggling that goes on, there is simply the question of a glaring accounting failure to put people in place who are able to effect ordinary collections and make reassessments to improve our revenue base," said the Prime Minister.

Meanwhile, Minister of Transport and Aviation, Glenys Hanna-Martin, said the proposed changes in the Bill for an Act to Amend the Passenger Tax Act are merely administrative. She noted that there were inefficiencies in the present system, which was the driving force behind proposed changes in the Bill, as it was determined that a significant amount of revenue was being lost under the present system.

"After extensive consultation with airline operators, it was concluded that the present system was cumbersome, costly, ineffective and resulted in considerable loss of revenue, especially for operators who had to engage security services to protect cash revenue on a daily basis at the airport," she said.

The Aviation and Transport Minister said a number of potential solutions were examined, before it was finally resolved that the mechanism proposed in the Bill, was a more efficient approach.

"This system of collection has long been used by a majority of jurisdictions globally. As the tax is paid into the Consolidated Fund, it is used ultimately in the overall development of The Bahamas and need not necessarily be used in the development of air and seaports," said the Minister of Transport and Aviation.