Regressive 7% tax led residents to other ways of transferring $$
Minister of Social Development Marlon Penn said the seven per cent tax on money services transfers has been regressive to the people of the territory and has only driven them to find different means to get money out of the Virgin Islands.
Premier Dr Natalio Wheatley had filed a motion in the House of Assembly today for the reduction of the seven per cent levy down to 3.5 per cent.
Penn described the levy as regressive while offering his contribution to the Premier’s motion, which was eventually passed.
Penn said that when the bill was first introduced back in 2020, there were estimates that some $70 million was leaving the territory through the money services facilities. Penn added that it has primarily been done by people who had children in university and those who came to the BVI to work and make it their home.
“[These] persons who must pay taxes across the board in other areas and to add an additional burden to those people, I felt then and now is something that should not have done, and we have to find more creative and innovative ways to generate revenue in this country,” Penn said.
The minister noted that while the figure for money services was $70 million, significantly more money was leaving the territory through the banking system.
“At the time of the debate, this number was close to $1.3 to $1.5 billion. Let’s call it $1.5 billion was leaving this territory every year through the bank and I know that number has increased because of the introduction of this [seven percent tax] we have sent persons to be more creative in the way they get money out of the territory, some are now using the banking system to do so, and they are using underground means which makes it difficult for us as a territory,” Penn said.
“That is the reality, I think the reality is we continue to be ostriches and ignore the reality among us and put our head in the sand and not speak honestly and forthright. I think that ostrich mentality and behaviour is one of the things that got us where we are today, and we cannot continue,” the Social Development Minister said.
He added that while he welcomed the reduction and that the Virgin Islands are moving in the right direction with this particular tax, the government must be careful not to impose regressive taxes on people who live here.
“Not just the people who come to live and work here and contribute and also our people are being affected and they are all our people, and these taxes tend to be regressive,” Penn said.
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But of course, y’all expect people to take death
No talent in government, whether it be elected officials or civil idiots, with hands open. So sad, the VI is doomed to failure on all counts.
Eliminate it all!
The people pay to gov and also pay to send money to family what is reason for make them pay more? Be honest why.
Why is there a tax at all? It’s obvious that this is taxing downislanders who don’t have bank accounts or drug dealers trying to launder their gains.
This unity Government is useless. Same tired politricks.
It’s a regressive tax, intended to tax those who need to send money overseas, who are essentially expats, despite the fact that those lawfully employed have taxes withheld from their payroll as pointed out by 7 or 3. It’s no different than the arrival and departure taxes and all the other fees payable by tourists. The government needs more money so it imposes taxes on those who cannot vote because to do so otherwise could incur the wrath of the voters. Meanwhile, of course, the voters seem unwilling to demand fiscal accountability of those they elect despite decades of squandering the public purse. The answer instead lies on making others pay for their mistakes. Not exactly what could be called leadership.
Thank you Honorable Penn. Lack of foresight when this was introduced. Then again it may have simply been greed.
NO MATTER WHAT SERVICES THEY USE..THEY ALL CHARGE A FEE TO SEMD MONEY. BANK TRANSFERS(FEE) , PAY PAL(FEE). ALL ELIGIBALE SERVICES CHARGE A FEE. So good luck with that.
Taking from Elderly and children…..Shameful. ý
When wrong deeds are rewarded and doing right is a sacrifice— then our country is heading down a slippery slope When discrimination is encouraged and embracing differences calls for a fight our country is doom. —When people are afraid to point out wrong because it is a family member and we look the other way , when young lives are gunned down and we keep tight lipped because of fear our country has lost its way .
A shameful tax on the poor that adds to BVIs terrible reputation.
A legacy of the rotten to the core Fahie administration that picked on people who couldnt fight back while handing out money to their relatives and cronies..
Disgraceful.
Marlon, I know its almost election time and you and Sowande have to pander to your particular constituents but I REALLY thought you both had more sense than this… I really did.
For YEARSSSSSSSSSSSS ppl using moneygram and western union have been paying the fees that moneygram and western union have imposed….monies which these companies have NO social responsibilities to do anything in the country, they take the money and keep it for themselves…but thats not a problem for those utilizing their services.
Now..the Government decides to add on a tax so that monies raised from that same tax can tangibly benefit the country , go into our infrastructure and social services (which I might add are utilized by EVERYONE in the BVI, expats and born heres and new paper belongers alike) and people have a problem with that.
SOOOOO the solution to avoid paying the 7% tax which benefits the country and ultimately us as a whole is to now go to the bank and pay THEIR fees, which again is only used to support THEIR services and benefit them as a whole as many of these banks do nothing for the country.
SO…people (expats, belongers, paper belongers) would rather see the money be absorbed by the banks than see the money go back into the very same country that they live, the roads they travel on and the social services that MANY of them dedpend on to even exist here….
and YOU Marlon and Sowande see the sense in that? I cry for my country….CRY ….this is really what we have come to.
People must come and suck on our teats but must never ever ever dare give anything towards supporting the country and our ELECTED officials think this is ok.
WOW….thank you for making my decision for next election a lot easier…smdh ….the BVI is not a real place.
I think you’re missing the point. These are bank or payment provider service fees. NOT A TAX. What does luck have to do with it?