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‘Tax after sales’ an option for stimulating economy?

The shelves of a local supermarket are filed with imported products.
ROAD TOWN, Tortola, VI – Ensuring fair competition and implementing ‘tax after sales’ could be two methods that would bring in the much needed funds to sustain the Territory’s economy, two talk show hosts recommended.

Cromwell Smith aka Edju En Ka and Natalio Wheatley aka Sowande Uhuru on a radio programme aired on Thursday, November 10, 2011 stated that initiatives are needed to boost the economy.

According to Wheatley, maybe the new government could opt for a ‘tax after sales’ on some of the products that are imported; making it a win-win situation for the businesses and customers.

“Instead of [having businesses] paying taxes for all the merchandises sitting on the shelves, try to get them on the shelves as cheaply as possible to encourage people to buy it. And then you take the tax off the value of your sale, as oppose to people going to Puerto Rico and St. Thomas,” Wheatley explained.

That way the Territory can generate much needed money, he added. Meanwhile, Smith pointed out that shipping and cost of freight are factors that contribute to the high cost of living.

He suggested that local entrepreneurs could be helped in competing against Tropical Shipping.

He made reference to the Chalwell Brothers in East End who “have some big boats that could go to Miami just like Tropical Shipping, so that there could be some competition to reduce the freight.”

14 Responses to “ ‘Tax after sales’ an option for stimulating economy? ”

  • katty (12/11/2011, 09:32) Like (0) Dislike (1) Reply
    Tax after sales is not for the bvi. things are already very expensive as is. people will not be able to shop in the bvi
  • VAT (12/11/2011, 09:40) Like (0) Dislike (0) Reply
    Although I value and respect Eduenka and Sowande very much, on this matter they are clutching at straws. The relief would only benefit the importers and sellers, not the consumer. For the consumer this is just another way of taxing us. Government's problem is a lack of revenue, and revenue need not come from various tax schemes to the poor and common man. All Government needs to do is invest in the future of its people by owning the assets such as the telecom infrastructure, water supply infrastructure, energy supply infrastructure, import/export infrastructure and basically charging the outside investors fo rthe right to earn money in our territory. For example, in the mobile telecom industry: Govenment could have easily charged the TRC to won and install all tower infrastructure, hire a firm (such as CCT or AT&T) to maintain and monitor the works, and allow companies like Digicel or LIME to operate on our system for a fee of 3% (as what is legally allowable by the TRC Charter). However, the TRC cannot collect that money because WE THE PEOPLE did not want to invest inour own financial future by owning our mobile telecom infrastructure. That is maybe 15 million going down the drain every month, or should I say going outside the country in foreign bank accounts. Definitely Government should won all water desalination infrastructure and pay firms such as Ocean Conversion or Bi Water to maintain, manage and train the next generation of Local professionals in that field. Then we won't fight amongst ourselves of who is getting the benefit of our tax dollars, because it would be ourselves. Private interest is ruining our economy but yet neither the VIP, NDP or PPA are talking about our common or public interests as it relates to investments and profits within our community. All they speak of are new ways of collecting taxes from poor people.
  • boil egg (12/11/2011, 11:51) Like (0) Dislike (0) Reply
    we aint want no more talk we wah action deman
  • are u kidding (12/11/2011, 23:04) Like (0) Dislike (0) Reply
    Tax ...and trustin the govt to spend it good.....now thats wishful thinkin
  • I agree to an extent (12/11/2011, 23:13) Like (0) Dislike (0) Reply
    I think government should tax the hell out of cigarettes and alcohol products like they do in the states... people will pay any price to get that stuff! so why not put taxes on it but keep the total cost just below what it costs in the States and U.K.
  • I am Boo (13/11/2011, 08:36) Like (0) Dislike (0) Reply
    I agree with the sentiment of Sin Taxes which should be fuelled directly into the social services which deal with there direct effects i.e. health ans social development, and the NGOs that deal with these issues. On the topic of VAT or Sales tax and removing duties I disagree vociferously with Edju and Showande. Without price control this will have the effect of being regressive and contributing to increases in the cost of living. Government's best bet of collecting their revenue is at the points of entry and their proposal will reduce this revenue. The 2003 Poverty Assessment which the Government refuses to publish paints a pretty dismal picture with regards to relative poverty in the VI and the income level which is required for an acceptable standard of living. As much as 25% of families can be below this level which Edju Enka's proposal will have the result of increasing. So before we look at increasing the tax base to increase wasteful government spending while putting a regressive burden on families let us discuss increasing government efficiency and effectiveness, decreasing waste and curroption, investing in Tourism, consumer protection and price control for essential goods and services, investment in infrastructure, a rational immigration policy, facilitation of foreign investment, and stimulation of local business etc.
  • Greater understanding (13/11/2011, 18:48) Like (0) Dislike (0) Reply
    Why dont the government start taxing all dem people who running from all over the world to bank them money here. put a tax on them cause them dont live here.
    • A visiting foreigner (14/11/2011, 00:57) Like (0) Dislike (0) Reply
      Less people have been doing that than there used to be. One of the biggest reasons foreigners use offshore banking is to avoid taxes, but that doesn't really work as well in the BVI anymore. Not concerned enough to find better citations, but here's the first thing that popped up in a Google search: http://www.panamalaw.org/jurisdictions_to_avoid_bvi.html
    • understanding (14/11/2011, 04:59) Like (0) Dislike (0) Reply
      I agree with you. A lot of the wealth people bank in the BVI to avoid paying the IRS . If Tortola gonna start charging tax they need to give the people a them to file INCOME TAX at the ene of the year. I am in the states and I am going to set up a business to where people can buy there food through me and I send it straight to them. There's away you can avoid paying custom and duty fees. I have been buying and sending things to people in Tortola, st. Lucia. and other islands and they did not have to pay any custom duty fees.. The food prices are crazy on Tortola, you can buy two box of cereals in the states and the mailing will not even cost you the price Tortola charges you and you still get it custom and duty free. I can't tell you how to do it on here but I have been doing it for years and none of my customers have had to pay anything out of there pockets. I have sent computers, laptops, clothes, stoves, fridge furniture etc and they paid ZERO..
      • A visiting foreigner (14/11/2011, 23:00) Like (0) Dislike (0) Reply
        Not exactly a "secret" procedure you're going through there. Take a look through any recent BVI Welcome magazine. There's a reason for the lack of duty mentioned if you know where to look.


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