Import duty exemption post hurricanes was abused- Hon Fraser
The duty-free list allowed persons to not pay import duties on items such as food, water, building materials, clothing, vehicles, household furniture and appliances, electrical fixtures, pharmaceuticals and many other items deemed necessary.
People who needed the break did not benefit
Hon Fraser strongly expressed that the individuals who really deserved the exemption were unable to get the benefit before the deadline ended due to not receiving insurance money on time as well as losing their bank cards.
He stated, “The people who got damages, the people it was intended for as long as they can prove that this was the case, they have evidence then Premier it should be accommodated. Of course, the people can’t get their insurance money. Some people have money, but they couldn’t find their bank book or their card, some people lost their credit card. So we have to make special accommodation for people.”
The Third District Representative told the House that he would “hate” to know that the persons who really needed the import duty break end up being “penalised”. “Premier I really want you to look into this.”
“Persons capitalised on the exemption”
The Opposition Member further stated that the duty exemption was not used for its purpose that it was intended for and requested that Premier Smith investigates into the matter before the deadline of June 30, 2018, expires, while adding that he believes that a few persons took advantage of the duty break.
“Some people went out and they capitalised on this exemption that you’ve given to buy things that they never had. They bought new cars and they never had a car and their car wasn’t damaged in the hurricane. People went out and they bought building materials to build houses that were never damaged and they got that exemption,” Hon Fraser explained.
Duty-free import will stimulate the economy
Meanwhile, some residents had expressed that the government should not have included some items on the list because this denies the territory of funds needed to pay government bills but Premier Smith emphasised that the duty-free import will stimulate the Virgin Islands (VI) economy.
He said, “The more we can encourage them to get started, get the building supplies that in itself will jump-start the economy and result in more revenues for the government as well. Therefore the spin-off effect of assisting people to bring in their items, that itself will stir the economy and improve the government coffers as well.”
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12 Responses to “Import duty exemption post hurricanes was abused- Hon Fraser”
And the beat goes on, the people of this territory continue to be in the dark on why and how the country got in this state. The hurricane is not to blame it was before, even the flood. The Auditor General report, the audit done by the private company nobody is saying anything including the Governor's Office.
True, delay in processing and settling some property insurance claims may have prevented some residents from taking advantage of the import duty avoidance. The timeline should be extended for these specific residents. The application for duty avoidance should be tied to hurricane related losses.
Moreover, we always come down hard on the “lil man” but tight lip on others who abused pioneer status and take the profit and move on. What is good for the goose is good for the gander. Yes, pioneer status may be needed to encourage investment but they should be laden with guarantees and performance deliveries, ie, providing a number of jobs by a certain/reasonable time frame, bringing on stream X number of rooms............etc.