All Customs duties reduced to 5%! Oil import tax slashed by 50%
By Fitsroy Randall, BVI News
Premier Andrew Fahie has announced that all Customs duties on imports that are above five per cent will be reduced to five per cent starting April 15 for the next three months in the first instance.
Speaking at a media conference earlier today, Fahie, who is also the Minister of Finance, said this initiative is a move by his Virgin Islands Party government to ease the financial burden the people of the Virgin Islands are facing due to the COVID-19 pandemic and the current Ukraine-Russia conflict.
The Premier also noted goods and services that currently have a duty of five per cent or less will remain the same.
“This will apply across the board, both to businesses and private citizens. To give an example, if a person was to import a motor vehicle costing $30,000 including shipping where the import duty would have been 20 per cent or $6,000, under this initiative, the duty will be capped at 5 per cent and they would only pay the reduced duty of only $1,500 during the period of this stimulus initiative,” Fahie said.
“Similarly, when it comes to importing food, clothing, construction material, marine supplies and equipment, vehicle parts, products for senior citizens and all other items where the regular duty is over five per cent, persons and businesses will pay five per cent and this will lower the overall cost of importing the item,” the Finance Minister added.
The Premier said since the Custom duty is calculated on the purchase price of the items and the shipping cost, the calculations of the savings would not one be on the cost of the item but inclusive of freight or whatever other charges that make up the CIF (Cost, Insurance, Freight) value.
Diesel and Petroleum Import Duty slashed In Half
Fahie also announced the government will be implementing measures to cushion the impact of rising fuel costs on the people of the territory.
“The import duty on diesel will be reduced by 50 per cent from 22 cents per imperial gallon to about 11 cents per imperial gallon. The import duty on gasoline will also be reduced by 50 per cent from 32 cents per imperial gallon to 16 cents per imperial gallon,” the Finance Minister said.
“This should give our people some relief at the gas pumps and in their pockets. So, the savings for all persons in all sectors have been significant whether it is in the marine sector, the automotive sector, the construction sector, the tourism industry, hardware and home goods; all sectors across the board,” Fahie added.
He noted this stimulus initiative will help residents with the economic struggle incurred by events out of their control. Fahie added it will also increase the purchasing power of businesses and individuals allowing them to stretch their dollar a bit more and also maintain their standard of living while keeping the economy stimulated.
“To ensure that the savings and benefits are passed on to the consumers, your government will be conducting monitoring exercises where businesses are concerned, through the trade department with its consumer protection function and in collaboration with our various other government agencies. I want to take this opportunity to remind members of the public that this will be just one initiative your government has put in place to ease the financial burden of our people,” Fahie said.
The Premier also thanked the Territorial At-Large Representatives – Sharie DeCastro, Shereen Flax-Charles, Carvin Malone and Neville Smith – for championing the initiative.
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We do not need more cars in the BVI! Tax bad imports and relief good imports. How stupid can you get VIP?
These are socialism price controls directed to calm the population into a false sense of pacification.
So terrible as the downward spiral continues
I saw this firsthand in Venezuela. Price controls instituted by the government to control inflation. Businesses suffer from not being able to make a profit so they close. No more goods and services, inflation exploded and money was worthless. Black market flourished but you have to pay 3-4 times going price
I understand he is Premier and I .wish to respect his position …but quite frankly I honestly believe that he has the wrong set of advisors around him. Or is he advising himself wrongly?. This across the Board drop to 5% is a very dumb move. I don’t want to be critical but we must look at the bigger picture. Before a move like this three questions should be asked?
1. Will dropping duty do more good to the country
than harm?
2. What exactly is the overall objective here?
3. What can be done to benefit everyone equally?
Mr. Premier please appoint a proper advisory board from across all parties and stop this nonsense VIP game you are playing. Cater to the entire country and stop playing party politics. STOP IT!!
Lowering customs duty is not “price control.” Learn the difference. Businesses can still charge whatever they want.
But the question is , will the businesses especially the supermarkets pass on that break to the customers because right now everything in all the supermarkets has a high price increase.
No legislation that says they have to. This decision just made it profitable for individuals with the money to spend their money overseas instead of into the local market avoiding import duties. Prices going to remain the same right here…
I hope it pass on to the consumer
I hope it pass on to the consumers u d best if I can vote for u 100 times I will
People do not need blanket discount..they will all start importing TV’s, Cars and motorbikes..
Do the gas stations give us Imperial Gallons?
No, but they are charged by imperial gallons on export.
A question I have been asking for years. I tried filling a graduated can and could not figure out the amount with the fuel gauge.
I love this
As a VIP Hater, I give you an A+ grade for this!
When inflation rises 10% prices in the shops rise 50% – so it won’t matter
the things that get import duty discount will be more expensive than before- go read an economics book
You are working. You are really trying..Much respect to you..
Go read a book: if inflation rises 10% prices in shops rise 50% – so this means nothing OK?
Part of the plan. when next Government has to raise it back VIP going to tell you how bad they are. Just a politic power play. Enjoy it while you can. We all going to pay for it down the road and whily Fahie knows it
This, though a good jesture, will benefit only the business owner. The consumer will get no relief and see or realize any benefits therefrom.
They will continue to suffer and struggle withe gross high cost of all products, because business owners will never be fair or moral with their pricing. And there ae no mechanisms in place to make them fir or moral…
This whole thing is but a political gimmick to consolidate votes by rovidin the business communiy with an ECONOMIC STIMULUS PACKAGE.
Don’t be blinded sided people.
@What an idiot, I think that you are the idiot.
I think ur mommy is hot
Mine is
A Decision good or bad is better than no decision at all. Well done for making a move. Im sure it will benefit people. Contrary to what people believe supermarkets are not trying to rob people it just costs a lot to get food to the BVI.
More local farming will help that, but in the meantime Im sure this break on duty will allow businesses to give the consumer some breaks.
I will back check after a few weeks to see if this is baring any fruits and will give praise then and only then
Hey Decision, when was the last time you saw prices go down when govt reduced import duties? Do you really believe they will lower their prices?
So stamp duty break, 5% duty on everything and a bridge being built in the 1st district … coincidence ???? Why not just a 5% duty on all food products. Now we will see the port backed up again like Irma / Maria full of furniture, cars, trucks, TV’s etc. I do appreciate the diesel and gasoline duty reductions that’s a huge help for all.
and a house.
And losing millions of dollars by not letting USVI boats with tourists into the BVI. When is this man out of this position?
Don’t for one moment think that we will ever forget all the wrongs that you did
WOW A LOT OF YOU PEEPS ARE IDIOTS. Hes doing this because there is a looming global financial crisis where the dollar and euro will be undermined and devalued. MEANING ALL PRICES GO UP. Thus a blanket reduction is more than reasonable.
Some people should stop criticizing for criticizing sake.This good economics. Lower duty will attract more imports which will generate more revenue. The common man has more disposable income to spend on things – his quality of life improves. This is economic policy others in the region should copy not the sharing out of money they can ill afford which leads greater debt and higher taxes later.
This is like calling a sale when everybody broke
Sure will make it easier to furnish that big new house
Cartoon in todays Daily Telegraph. Newspaper headline “ Shop now. Things are cheaper than they are going to be soon”
Big deal – average tank is 20 gals – so you save about $3.20. Fill up once a week thats less than $13 a month. Sounds good and Yes it helps but its a drop in the bucket with gas reaching $5.50/gallon and bound to go higher.