New trade license fees too steep! Businesses, economy will suffer
By Fitsroy Randall, BVI News Staff
Executive Director of the BVI Chamber of Commerce and Hotel Association (BVICCHA) Keiyia Jackson-George said the new proposed increase in trade license fees will negatively impact business in the territory and may put the economy in grave danger as businesses are still recovering from several disruptive events that happened over the last five years.
The BVI’s existing fees range from $25 to $250 for Belongers and $200 to $600 for non-Belongers. But with the increases, the cost for a trade license will be up to six times more expensive for locals (new fees range from $150 to $1,500) and seven to 25 times higher for non-Belongers ($1,500 to $15,000).
Jackson-George noted that for many businesses, these proposed fees would be like a quadruple whammy because the port fees have been increased and several other government-related taxes have gone up. Consequently, the new proposed fees will be a new expense that some businesses cannot afford to pay.
“From the business standpoint, it is costing more to do business. What this means is it is affecting the consumer. When you increase the cost of doing business, it means the consumers are going to see an increase as well. When the consumer sees an increase and they are unable to meet that increase, that means the economy is going to suffer. The buying power of a dollar in our community is drastically decreasing. So, you are going to see some consumers asking for a liveable wage and in the current cost of business is nearly making it impossible,” Jackson-George said.
Gov’t trying to generate revenue but so are businesses
She said she understood the government is trying to raise revenue but added that businesses are trying to do the same.
The Executive Director, therefore, argued that increasing taxes and fees to generate revenues might not be the best solution.
“It is only going to trample the economy. Remember now, businesses are the backbone of the economy and if our businesses go under, our economy goes under. So, there must be a partnership and I do not mean a partnership with one or two businesses but there must be a partnership with every industry and as many businesses as possible. Even though the businesses might be in the same industry. What affects one does not affect the other in the same way,” Jackson-George explained.
Businesses still in recovery
The BVICCHA Executive Director said she is aware that some of the fees being imposed by the government need to be increased because they have not been updated for several years. However, she noted some businesses are still recovering from Irma and this hit from the increased fees will be damaging.
“Many of the businesses are still coming back from Irma and some the pandemic and some were affected by breaks in logistics meaning the cost to get goods here and then slammed by the increases as it relates to anything due to the Ukraine war which then increases the cost of gas and electricity. So, for the last five to six years. Businesses have been looking at increases,” she said.
“I think across the board the increases are just too significant. If one fee was normally $50 one time and the minimum now is $150, that means that the business is paying a 300% increase. Now some people might look at it and say it’s $50 to $150, just $100 more but a $100 more could mean paying somebody’s salary or paying a bill or paying the rent or something,” Jackson-George said.
Better partnership needed
She added that there needs to be a better partnership between businesses and the government to come up with an amicable solution that benefits everyone.
“I think it is more important to develop the business so when increases happen, it does not affect them so hard. Businesses are going to kick back a lot. They are not to the point where they can take these hits. So, instead of increasing fees, let’s develop the businesses. Work with the Chamber of Commerce. Give them some training, let’s give them support,” Jackson-George said.
“Let’s put together some grant aid and not only financial assistance but give them some technical assistance so that the grant aid they are receiving can benefit the organisation and not go through one hole and come out through the other,” she added.
Roll-out of new fees will be stalled?
The Executive Director noted she had a consultation with the Premier’s Office, and she was assured that the Business Licensing Act 2022 — the legislation under which the fee increases were proposed — might not be implemented right away.
“So, for me that is comforting. I am hoping to work closely with the Premier’s Office on this bill especially when it is active to reach the business community and get some feedback from them and work with the Premier’s Office to roll this out effectively … So, I am hoping once it is passed, it does not go into effect immediately and affect people next year because next year is going to be a pain,” Jackson-George said.
The legislation successfully passed in the House of Assembly last Thursday, June 16 and now awaits assent from the governor to become law.
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Come on Dept of Trade…please operate more like a business…understand you may need to increase rates – how about doing it gradually and not just the monkey see monkey do of copying other islands – make the increase in gradual steps
You are so correct. Sorry I hit unlike when trying to like your comment
I dont mind the fee, what i dont understand is how many persons who are not even 3 years in the BVI cant read and write, get their trade licenses without any qualification. Now why people who are here over 15years more than qualify are told they are not qualified… Can someone explain this.
I want all trade licenses holders be reviewed Please, Please. Or replace the head of trade Please, for corruption.
The poisonious juice spread wild in the country infrastructual systems. I know you so i will help you out mentality BS. All these unfair practices helps external review. The ppl barely making money you the greedy instution want more money to give a piece of papper you see how illegal s**t happens.
I don’t need the Dept of Trade to act like a business how’s about like a regulator that knows something about business. All they know to do is collect money.
With that said, I hope the governor/government sees the alarming need to advance minimum wages since there is no price control, how do they expect the populace to survive.
Leave it up to Nathlie to mess up everything he touches….
Unbelievable that in times like these the propose this crap.
This legislation was on the table in its current form since NDP was in power, its only now being passed. People will complain no matter what, they complain about the current system and now they complain that it’s being changed. The only thing I would say is with the increase they need to revamp the categories of licensing because currently some businesses require multiple licenses because of the cross-services they offer, example if there’s a building contractor that provides architectural services, contractor services, has a truck for construction purposes and rent construction equipment as part of the overall business, they will need 3 separate trade licenses which is complete nonsense. Other than that, it is an annual fee and perhaps they can offer terms like payments over 3 months instead of one time. Also the 90 period for starting your business should be changed to 6 months. Otherwise I see nothing wrong with them bringing the Legislation up to date.
There are parts of this bill that needs to be revamped. There is no way anyone can properly stand up a business in three months, considering the cost of rent in this place as well as the lead times to get anything done, ie build out, getting equipment and material. Three months is totally unrealistic. Also, why does someone have to have qualification if they want to open a business. The point is there is a niche that can be capitalized on and the business owner hires employees with the expertise. This is part of stimulating the economy instead of stifling it.
These areas need to be revamped.
This is justified, this is the government looking out for the people? The fees are too expensive and so what if people have multiple trade licenses, just make sure they continue paying their renewal fees. How can cabinet consider enforcing without discussing with the public businesses?
I totally agree with your Comment. How can the Administration just comes up with such an increase in fees without consultation of the People. Where do they think the stuggling man who wants to advance him/herself going pay this kind of money if they can’t make it. This appears to be a Tatic being used to oppress, suppress and prevent young folks from establishing entrepreneurship. Can all those Members that voted for this ridiculous Act be made known to the Public so We know not to patrionize their establishment. Come on! Man can’t catch himself since Irmaria 2017 through COVID-19 and Lock Down. WE CAN DO BETTER NATIONAL UNITY GOVERNMENT! WTH ARE YOU PEOPLE THINKING
BVI people are too much into mellee and other nonsense! There has been multiple public meetings an consultations on this topic for YEARS but nobody was interested because it’s not juicy or sexy news! If it’s not a topic being blasted on the morning radio show or posted by the Facebook talk shops, nobody pays attention. For the last 5 years this has been on the table, talked about, circulated in draft and public meetings held. This is not new so I do not understand why people are acting surprised. All that has happened is that it’s finally being passed in HOA. Where was all the complaining then? The same thing will happen with the new liquor license legislation. It has been circulated, discussed etc. in draft and only after it’s passed in HOA will we hear people complaining. Again, if it’s not minding people business or juicy gossip, nobody pays attention to it. I heard some commenters on today saying the Premier left island and an Acting Premier was not appointed. They said it with such confidence that there could be no doubt that they were speaking facts and a simple check of the Government media release site shows that Hon. Rhymer was appointed Acting Premier for the time that the Premier was out. Again, all we focus on is stupid bulls**t and wonder why we are here now.
Media’s Agenda
How will you justify paying for a trade license and must have the business operating within 90days? The banks and other creditors require so much including a trade license, now you have to spend so much for this and begging the bank for a business loan. Look how many people will try to get personal loans now, then the banks will catch on and figure out a way to increase the rates… Making it harder for anybody to get a loan.
Government of the people for the people… Bull!
Meetings are usually very poorly advertised. I went to meeting after meeting advertised by the BVIHCA concerning previous proposed legislation and it was a waste of time because they would not study any of us. Why would anybody go to any of these meetings when they know already that it is a waste of their valuable time, especially when the person responsible for the department isn’t showing up anyhow.
Amen to that!
Same thing with land taxes. Government has been asking the people who owe house and land tax to come in and pay, late fees have been waivered over and over again. Wait for the cry when they hear their property was turned over to the crown.
And it is obvious that their only concern was to tick the box, because none of the concerns have been reflected in the bill.
The Government has always done what it wants without consulting people in the various industries. Now we have a set of people running the country who are totally ignorant of business and out of touch with the struggle of residents. Everything is 3rd World infrastructure and basic services needed. How much more damage can these people do, looks they spend their time just to look for ways to harm the BVI.
Government did have consultation meetings for both this and the Trade Act on all the major islands. Both have now passed. Very few people attended these meetings but they did happen. People just cannot be bothered to attend. It is not just the greedy politicians that are to blame. A disinterested ignorant population that does not go to meetings and keep themselves informed and share their views is not helping.
THANK YOU!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Everyone is waiting to be spoon fed. If this was on Mika Barry FB page they would’ve known about it but they only act like they care when things are done with.
Is it really too Steep Or You business Owners Just too DA*N cheap… yall need to stop it!! imagine making 3 or even 10 times more in a year for a one time fee…. you all does upset me. people of the BVI you complain too DA*N much.
Always want things easy with little to no effort. this is the reason the country in a mess. Because of you all bad mindedness!!
Digital credit system, get ready because you won’t own nothing
Come on Carvin and Fraser MAKE SOME NOISE!!
For what purpose? After years of the fees being at a minimium they are increasing and now everyone mad?
Did you really thing with everything thats going on, that was a sustainable situation?
Fees in must US states Rane between $25 and $200 so not buying it. Need to trim the excess in these departments. How many times you walk into a department (esp Labour) and one person doing work while several milling around doing much of nothing?? Trim the excess fat from the department. Pursue efficiency and stop taking it from the backs of small business abs the backs of the people!!
Several years ago Trade took our three trade licenses and split them, stating that manufacturing and sales were different functions and each had to have a trade license. That doubled our cost then; with increased fees we will be faced with a several thousand percent increase. Responsible businesses in an economic down-turn, such as Irma and COVID, know that raising prices just decreases sales; instead they reduce expenses to keep their customers. Our Government needs to start exercising proper business practices and reduce their expenses, not raise prices. It was unconscionable that during COVID lock-down they kept all of their employees on full pay while not working, while businesses struggled to just keep the doors open, with employees either laid-off or on reduced hours.
Government needs to stop taxing us out of business before there is no business to tax!!
Do you know how a country typically make money? Taxes.
What do we not have in the BVI? Taxes. Why? Because it facilitated the attractiveness of the financial services product.
So we have no taxes but we want the best roads, schools, libraries, infrastructure of all kinds period. For Free.
However when we travel we pay taxes on the very piece of candy we eat and we have no issues.
Well that must be the solution. Let’s implement a real tax system and then we will have even more to complain about, but we might also have the money to build better roads and maintain public shools etc…..
How about that?
The key is you only pay tax on profit, so a low level of tax 10-20% takes a small portion of very profitable businesses but does not effect small start up or struggling businesses. On the other hand flat across the board fees hit all businesses, so struggling companies have to find the same fees as the very wealthy. It doesnt make sense that a o1 or 2 man start up pays the same fee as a large existing business with hundreds of employees.
So where is the money from Financial Services going that we the people have to be taxed to finance roads, schools, libraries, infrastructure of all kind? The yearly Government-fees for each company are no joke paid by everyone local or international.
Or we could enforce the taxes we have like payroll tax, NHI and social security. Remember when the rule was introduced that employers had to demonstrate they were upto date with their taxes to get permits? It had to be stopped because so few of the locally owned businesses could show that compliance.
There are enough civil servants to allow proper checks of tax compliance and then to organize enforcement. If it takes a redeployment, do it.
Please make it make sense. There is nothing logical, practical or responsible about these increases. Which one of the individuals who sponsored this legislation would increase their employees salaries by 1000%??
I’ll wait
I had a worker that came into to work in the BVI from Turks tell me “the funny thing about this place is that EVERYTHING is about money”.
It took a bit for this to sink in, but he was 100% right. The BVI government does stupid stuff all the time that ends up shooting themselves in the foot. And it ends up being all about money with no thought of other consequences.
This is just another example of trying to get more money out of a working system – off the backs of the people that make this country operate.
Look again at the $15,000 fee for Non-Belongers. How are you going to open a business in the BVI when the first thing you do is put yourself in the hole $15K??? Most of these people are bringing in jobs and tourism to the economy. They should be rewarded – not constantly punished.
The new BVI tourism theme should be BVI LOVE MONEY!
I cant follow how you raising the cost of trade licenses by so much then turn around and saying you trying to make it easier to do business in the BVI… how are you making it easier by making it more expensive to do business.
Increase the fees for financial services. Trust Companies and International Business Corporations with the tax avoidance schemes can surely afford it.
Leave small businesses alone – they strugglin’ big time and hurricane season almost here,
Small businesses are now formed under the same law as international companies and would also be hit by more fees. Its already $1000-5000 (depending on who your agent is) just to keep a company in goodstanding!! Local companies also have to comply with initiatives aimed at international companies such as beneficial ownership, economic substance reporting to the ITA which are purely directed internationally. It all increases the cost to local companies for absolutely no purpose. What a mess, its time to change the company law
Instead of always raicing fees why doesnt the govt try and cut costs? Why do the businesses always get killed with one fee and rate increase after another so our govt employed brethren get to keep their cushy jobs. Enough is enough.
Since we abolished tax in 2004 we’ve been coming up with creative bandaids to fill the gap. Its every mans duty to pay tax which dont affect low income businesses, only wealthy businesses making a profit pay tax and rightly so they should be contributing.
Income tax was only abolished to attract Financial services not because the Government had been generous. You put Income Tax back on, Financial services will leave. Asking for increase in company fees will not only hurt Financial Services every local company needs to pay that also. Paye tax is payable from Employee salary, so you chase away the Financial Service companies you will reduce Paye-tax. Not just Paye-tax, their contribution to Social Security and NHI also.
These man on a mission to destroy us… They done screw the economy with how they handle covid then they try to raise fees at the port in the middle of the pandemic; now right after they gonna turn around and raise fees for trade license and parading it like they doing something good for the BVI.
Please correct me if I am wrong!
But is not every single thing we consume, drive, fuel, electric, sit on, sleep in, built upon etc. etc. etc. taxed when everything comes in through our ports where various percentages of DUTIES are paid?
Please enlighten me as to your thinking of we dont pay tax, because everything we purchase, those duties are factored in.
They can hold the trade license for themself,bvi is not a place for business,
Keyia you are a hypocrite. You sat un the consultations and said nothing about the fees. Well sah
What gave you the idea that she said nothing? They just did not study her as they usually do, these meetings are only there for show.
$ 25 cannot cover the cost of the paper work, so $150 should not kill a business which is where I think most of the small businesses are going to fall. $1,500 is certainly going to be for the larger local companies who should be able to afford it.
Now for outsiders Lets start at $1000 and continue up to $50,000. Businesses like the Banks and the Rite One should be paying $50,000 every year. They are ripping us off so why not let the government rip them off back.
Any license fees that are increased by that much (in some cases 1000%) will be passed on to the customers. So, by exponentially raising Trade License fees, the BVI customers will be paying more for goods and services. All the while, the BVI govt will continue to provide the same piss poor services and infrastructure. We lose again.
Exactly!!!
That 6 million dollars we spent on the legal team for the COI sure would have been nice not to waste.
You mean the 8 million? Now they want to get it back from Residents.
It best they give the country to england let them.make a better solution.im glad this lady ms Jackson spoke about this. These people are crazy and they cant run this country. I can give u a a solution why not impose fees when depositing applications like belonger status fee, trade license fee, naturilization Deposit fee. Why these imposement for this govermnent have to be so drastic. The putting the bvi economy at stake and othwr documents that need to be deposited. The cost of living i. This country us also to high. Every day the zuper.arkets have a diferent prrice on groceries. Put a task forcr for price xontrol. If in breach charge them supermarket a 5000 or 10000.
Why the prices of good and service always going, rent is already ridiculous. Why are they not raising the minimum wage this should be the first thing this government should focus on. How do they expect people to survive
How about they raise the property tax just a little it is ridiculously low. Raising trade licensing is just hurting the people who pay taxes.