BVI News

COVID knocks down government revenue nearly 7%

The BVI was last week given further insight into the state of the COVID-hit economy when Premier Andrew Fahie revealed that government revenue dipped by 6.65 percent compared to 2019 earnings.

Government revenue refers to the income from taxation, duties, customs, or other sources. The government needs this money to cover public expenses.

During the 2021 budget presentation, Premier Fahie said “total government revenue in 2020 was $340 million; $22 million less than initially projected”.

He said this decline was due to a decline in money earned from usual sources such as tourism and various taxes.

“Compared to 2019 and based on estimates for 2020, Tourist Arrival Levy fell by $1.8 million. Passenger tax increased by $1.1 million, but revenue from cruising permits fell by $3.3 million, and hotel accommodation tax proceeds fell by $420,000 or 16.02 percent,” Premier Fahie revealed.

Additionally, taxes on goods and services declined by $38.75 million or 16.87 percent when compared to 2019.

With the sharp decline in unemployment when COVID-19 began spreading in the community earlier this year, it comes as no surprise that income and payroll tax revenue also dropped by $7.49 million.

Premier Fahie said the other taxes declined because of limited tourism activity which usually spills over into other areas of the economy.

“These figures are not surprising because we are aware of how much of our economy is based, directly and indirectly, on tourist arrivals,” Premier Fahie said.

Even though the tourism industry is expected to reopen December 1, the territory has been warned to brace for a slow recovery as visitors worldwide struggle to get familiar with traveling during the COVID-19 era.

In the meantime, Premier Andrew Fahie said his government is pursuing new avenues to diversify the economy as the main economic pillars — financial services and tourism — continue to reel from the impact of the COVID-19 pandemic.

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14 Comments

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  1. But says:

    During this crisis knowing that many persons are laid off are when you guys implement the fees for good standing letters from Inland Revenue, NHI and SSB. Are those not government money??

    Like 10
    Dislike 1
  2. Hmm says:

    You all need those revenue and yet tourism was the last item on the agenda.

    Like 7
    Dislike 2
  3. Vip says:

    Stop telling the ppl lies
    Covid did not knock down revenue is the vip f***s did that
    Fahie you and your ci***s need to wake the f**k up
    The ppl already see what a w***ed man you are stop blaming covid for your d***y work
    Is everyday you coming with a new episode

    Like 10
    Dislike 3
  4. @Hmm says:

    Stop talk foolishness. Everywhere in the world the tourism industry has been negatively affected by Covid-19 and the BVI is no different.

    Like 5
    Dislike 1
    • Thank You says:

      The way some of these bloggers write you’ll swear COVID only affecting the BVI and only the BVI has decisions to make to survive.

      Like 7
      Dislike 1
    • Hmm says:

      If all bvi people are like you i dont know what will happen. RE READ the post. It clearly stated that BVI is Depending on tourism which we all know and yet it was the last otem on their agenda. What part of english there you and friends dont understand. Jees. The person not bloging about the world and how it affect the world. They are simplying saying that it an important issue yet it was dealt with last.

  5. Rubber Duck says:

    Lucky them.

    The BVI government has knocked down the tourist industry’s revenue by 100%.

    Like 9
    Dislike 2
  6. Heckler says:

    Revenue down and cookie jar raidin up. Dont let these cats fool you.

    Like 9
    Dislike 1
  7. Not sure ... says:

    Need to see the details but 7% seems pretty low in the grand scheme of all that has happened.

    Some greater transparency would be nice.

    Like 7
    Dislike 1
    • Doh says:

      There is no budget… no paperwork, so nothing to see or audit. This is the effin BVI. We are all about smoke and mirrors…

      But carry on

  8. Automate the paying system says:

    Perhaps if government move from having person line up in office to pay land and house tax and other services they would be have a proper website where you logon and pay for your required services and have receipts automatically printed. Government services system should be linked, instead of having people searching for a parking, then moving from office to office wasting time just to get things done on your 1 little lunch hour. Instead of blaming all the administration gone before. Put a sock in it and rise above the occasion. It is high time for us to move from the Stone Age.

  9. Tourism says:

    Im so please the government were only 7% down. The charter industry is 100% down, Retail shops 75% down, Food retailers and provisioners 60% down. I think the government can easily afford a second round of stimulus checks to help out the Tourism sector.

  10. annudda2cents says:

    imagine, our revenue fell over 7%, yet our budget for next year was only reduced by almost 3%. if indeed the budget fell over 7%, next year’s budget should’ve been reduced by no less than 15%. what exactly are we trying to prove internally and abroad? that we have money can’t done? that things may not be as bad as reality says it is? sad.

  11. More to come says:

    Chauncey Cline and another guy Mariner who have first hand knowledge ANNOUNCED they were not consulted or even part of the round table talks to help with the decision making process as it relates to TOURISM sector . Cronyism, putting people to make decision for the welfare of the country with hardly any experience is what would kill the country economy . Get pass your prejudice Thank God the military ship saved thousands that would have been taken out from the coffers for protections of the borders . No bust would have been made

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