The Members of the House of Assembly of the Virgin Islands are meeting again today for the 9th Sitting of the 2nd Session of the 2nd House of Assembly.
Amidst all of the semantics as it relates to Standing Orders (the rules that govern the House), where the Opposition has a barrage of questions for the Government and the Government finds some of the questions misdirected, there is a statement that was made earlier in the Sitting that must not go un-noticed.
Premier and Minister of Finance Dr. D. Orlando Smith has announced a 100% increase in the fee residents are required to pay when leaving the Territory via the sea ports.
Everyone anywhere in the world can identify with this! A fee hike? In this volatile economic climate?
That’s all I am sure most BVI residents will be hearing. But here is the explanation in the Premier’s statement:
Here is the statement:
Madam Speaker, this Territory has been feeling the effects of stagnant revenue growth for some time now. As one small step towards addressing this, my colleagues and I have decided to raise the passenger tax now paid by individuals travelling by sea from $5.00 to $10.00 for BVI residents and fifteen dollars for non residents.
The increase in the Passenger Tax will also allow the Territory to capture lost revenue resulting from the demographic shift over the years of visitors that travel by sea from neighbouring St. Thomas because of insufficient air lift through Terrance B. Lettsome International Airport.
Madam Speaker, this has been a trend that has developed over the years and with the proposed increase it is felt that this should not impact the decision of travelers to travel to the Territory.
Madam Speaker, adaptation of the proposal would result in an equivalent rate of $20.00 that is charged for passenger Tax (Air) for non residents ($15.00 per person plus a security fee of $5.00). In effect residents will realise a moderate increase on a tax rate that has being constant for almost 20 years.
The BVI’s current passenger tax rate is below that of its neighbours in the region. Anguilla for example has a departure tax rate of US $20.00 per adult and $10.00 per child ages 5 to 11 leaving by sea or air for visitors while residents pay a smaller tax of US $5.00.
In St. Kitts and Nevis, citizens currently pay US $18.49 and nonresidents US $21.51. They have also proposed an across the board new rate of US $37.00.
Madam Speaker, we are targeting the beginning of June to effect this change.
In addition Madam Speaker, we will introduce an administrative system that allows individuals to purchase passes that will allow them to travel without the payment of passenger tax on each exit from the Territory. These passes will be valid for predetermined periods of time.
Madam Speaker, I would also like take this opportunity to announce the implementation of a period of amnesty for the penalties associated with the payment of Property Tax, commencing on the 1st June 2013, until the end this year. The period of amnesty will allow taxpayers to become current with their property tax arrears, without being charged for the outstanding penalties.
Madam Speaker this initiative is geared at allowing property owners to become up-to-date on their taxes, without placing the added burden of penalties on their already stretched finances.
Madam Speaker, I urge my colleagues here on both sides of the house to give these two initiatives their full support.
Thank you.
Photo of Premier Smith – GIS
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