BVI News

Finance Minister to assess Custom duties reduction

The BVIPA’s cargo facility in Port Purcell, Tortola

As the territory tries to recover its economic output, Premier and Finance Minister Dr Natalio Wheatley has said his government will be looking to review the Custom’s import duty reduction implemented by former Premier, Andrew Fahie.

Speaking at a recent press conference, Dr Wheatley said he is currently seeking an update on the impact of the duty reduction and once he ascertains how it has benefited the people, his team will then make a decision on its continuance.

The Finance Minister said the government must ensure it is responsible in terms of the Virgin Islands’ financial matters. He noted the pandemic has caused a burden and a challenge to the territory economically and his government remains resolute in attempting to fix the issue.

“So, it is going to be a balancing act between making sure we help the public getting through this difficult period because of all of the inflation that has been caused by the Ukraine and Russia war along with some of the other factors that have provided hardship on some of the businesses in our local communities and balance that with the need to raise revenues to put into all of the projects and programmes and initiatives of the government and one thing we are going to have to do as well is to seek to raise new revenue,” Dr Wheatley said.

The Premier mentioned the territory must find creative ways to generate income to stimulate economic great and he added there are some suggestions on how best to do this on the table.

“Without a shadow of a doubt for us to meet all our obligations. We must generate revenue and try to see how best we can ease the burden on our people as much as possible. So, it is going to be a balancing act, but I believe we are going to figure it out,” Dr Wheatley said.

In early April, Fahie — who was Finance Minister at the time — announced that Customs duties would be reduced to five percent effective April 15 and it would be free for three months in the first instance.

The rationale behind the move was for the government to make relevant adjustments to provide relief to residents.

Goods and services that are currently at five percent and less would remain the same. The policy he said will apply to businesses as well as private citizens.

Fahie had also announced the calculated duties on fossil fuels, propane, and cement would be reduced by 50 per cent of their current rate from $0.22 cents to $0.11 cents per imperial gallon for diesel, from $0.32 cents to $0.16 cents per imperial for gasoline, from 18 cents to nine cents per 100 pounds of cement and $1.20 to 60 cents per 100 pounds of propane.

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15 Comments

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  1. Chupes says:

    He could assess anything? We forgot this is the same man who was a complete failure in education, agriculture, fisheries and everything under his portfolio in his last position. If we have any faith that a person who performed poorly with less responsibilities would perform brilliantly when given greater responsibilities then we deserve exactly what we get. As Andrew’s deputy and someone who was his greatest cheerleader, how it is he didn’t know the impact of the duties? Wasn’t he in cabinet? Didn’t the government discuss this program? Andrew only got in trouble a month ago. What you trying to tell me?

    Like 36
    Dislike 2
  2. Not a doctor says:

    The invasion is driving inflation?
    Is he aware if the much-larger US situation?
    This man is not fiscally knowledgeable.

    Like 15
  3. WHAT??? says:

    “…the inflation that has been caused by the Ukraine and Russia war…” No, no, no, that’s what the USA keeps saying is the problem, but it’s just a small part. Years of massive and irresponsible money printing in the USA to fund banks, weapons manufacturers and friends of the government are what’s caused this inflation.
    Please stop repeating what Biden wants you to repeat.

    Like 12
    Dislike 2
  4. ??? says:

    WHY DIDN’T THIS MEASURE AND OTHERS NOT CONSTRUCTED DURING PRESENTATION IN THE HOA? ALOT OF THESE SITUATIONS COULD HAVE BEEN HANDLED DIFFERENTLY TO THE BENEFIT OF RESIDENTS. ON THE OTHER HAND LEAVE THOSE MONEY TRANSFER FEES. BVI NEEDS ECONOMIC DEVELOPMENT JUST LIKE ANY OTHER PLACE.

  5. Really says:

    Former customs boss was tageting the little man and who i heard is more corrupt.

    Like 13
    • Government Official 1 says:

      I understand the gentleman is still in power. He has a bit too much on the current government for anyone to be able to sack him.

  6. Unbelievable says:

    Do we have any financial advisors in govt? Hilarious that our govt who are only elected bexuse of their guile and payoffs determine our economic policy. Lord help us.

    Like 16
  7. Economy says:

    Just place the entire staff of HMS Customs on unpaid leave and the government will save lots of money. The UK government can operate Customs for the next 2-4 years and pay them as well.

    Like 14
    Dislike 3
    • @economy says:

      This is how you would put your own people out of bread? This country is sick. Do you have any idea the social problems you will cost with what you are saying? How would they feed their families? How would they pay their rent or mortgages or do any of the basic things? You see why this country is in the mess it is. We have a lot of bad minded and wicked people as citizens who do not think before they talk. So our people must go home and suffer and the UK citizens must come here and do their work and get paid. You are a complete fool!

      Like 3
      Dislike 5
      • Narrow mind says:

        Civil servants on leave without pay are always eligible to seek work in the private business sector. There are plenty of jobs in the BVI according to the Labor Dept. so let them help place these ex-civil servants in the BVI’s flourishing economy as stated by the Minister of Finance.

    • Time 4 Change says:

      If we really wanted to do something to fire up our economy, we’d do away with the entire obscene customs duty scenario completely, go duty free. The last two governments have unfortunately been bound and determined that cruise ships are our saviours, so let’s make the BVI competitive with St. Thomas and Sint Maarten, and become a Duty Free Port. Spur our economy by getting rid of parasitical customs duties. Nobody knows into what dark hole that money goes anyway. This would benefit everybody – Oh, except maybe the treasury, and the smug loafers over at Customs.
      Maybe then Customs could spare some enforcement officers to take on the 3rd leg of our economy.

  8. Please says:

    Please allow back the Japan boat to the BVI so I can order some cars for my newly rental business

    Like 3
    Dislike 1
  9. request says:

    The people should not be paying on freight cost the shipping company has to pay for arrival fees boat or air Customers should only pay for the actual commodity. To much double billing.
    Then the VI port charges should be a standard fee not base on COST OF MECHADISE it to much! People need to pay taxes, but when they do it let is be justified. The VIPA need to give account on why they need so huge sum to operate .
    That is why we cannot control the merchants increase on products.

  10. duty reduction was firm for 3 months... says:

    people and businesses have made plans based on the fact that the duty reduction will go through to July 15. thereafter it was to be determined if it could be extended or not. Its difficult (for me at least) to gather from the article if the Unity group are now considering ending before July 15?

    Like 4
    Dislike 1

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