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'Is the Port broke?' Hon. Fahie on raising departure tax

- Hon. J. Alvin Christopher says increase should be across the board
Opposition Member and First District Representative, Hon. Andrew A. Fahie has questioned the process used to determine the need and processes for the proposed increase in departure tax at the sea ports. Photo: VINO/File
Hon. J. Alvin Christopher also said he disapproved of the discriminatory process of the tax between residents and non-residents since the Territory is heavily dependent on tourism. Photo: VINO/File
Hon. J. Alvin Christopher also said he disapproved of the discriminatory process of the tax between residents and non-residents since the Territory is heavily dependent on tourism. Photo: VINO/File
ROAD TOWN, Tortola, VI – Opposition Member and First District Representative, Hon. Andrew A. Fahie has questioned the process used to determine the need and processes for the proposed increase in departure tax at the sea ports.

The former Minister for Education and Culture, speaking in the House of Assembly today, July 25, 2013 said he believes the tax increase is being instituted at a time when the harshness of the downturn in the economy is being felt especially by the ordinary man.

“Let me ask this question. What is the purpose behind the raising of the fees at this time? Is the port broke? Is it that the Port is moving towards going to do some projects and the money has to be geared towards those projects?” questioned Hon. Fahie.

Meanwhile, Second District Representative Hon. J. Alvin Christopher disapproved of the proposal to raise the departure tax. “Madam speaker, I don’t know if I have the power and authority to tell the government not to raise taxes but his scheduled change is one that is troubling a lot of people,” commented Hon. Christopher on the move my Government to impose or vary rates, fees other changes and to grant exemptions with respect to rates, fees or other changes of the Statutory Rates, Fees and Changes Act, 2005 (No. 28 of 2005).

Hon. Christopher also said he disapproved of the discriminatory process of the tax between residents and non-residents since the Territory is heavily dependent on tourism. “I think that if you are going to raise taxes we should make it equally across the board because we don’t want to be in a position where we discriminating against our guests who are coming to visit us and I believe that we should apply fairness across the board in whatever form or fashion.”

He made it clear that he was not saying that it was necessary to raise the taxes but if it is to be done it must be done in a fashion that does not gives the impression that there is some level of discrimination against persons.

Premier Dr the Honourable D. Orlando Smith alluded to two ways revenues can be raised to provide service to the country. “One way is by through inward investment, encouraging investor to come so that more money can come into the country. The other way, Madam Speaker, is through raising fees or taxes in some way,” said the Premier.

Dr Smith stressed that if Government is to continue to spend without more money coming into the Treasury there would soon be no more money to spend, which would likely create a situation where persons would not be paid for work done and Government would not be able to provide the services that are necessary for the people of the Territory.

Territorial At Large Representative, Hon. Archibald C. Christian and Sixth District Representative, Hon. Alvera Maduro-Caines also made their input to the debate as they sought to justify the increase. Both said they didn’t feel that a different tax for non-residents was discriminatory in that countries in the Caribbean and other parts of the world have also varied their taxes that way.

The House of Assembly is currently in committee stage.

23 Responses to “'Is the Port broke?' Hon. Fahie on raising departure tax”

  • pat (25/07/2013, 17:07) Like (15) Dislike (15) Reply
    Andrew had the best arguments so far..that is why i love the VIP they make scene
    • the real Pat!! (26/07/2013, 11:29) Like (0) Dislike (0) Reply
      have you learned nothing??? get another name or make a difference in yours.
  • broke again (25/07/2013, 17:21) Like (9) Dislike (1) Reply
    ha ha by time c s done with the Ports it will BE BROKE!!!
    • Liat 521 (25/07/2013, 18:20) Like (1) Dislike (2) Reply
      Alvin what you were tryng to say bosa?
    • Observer (26/07/2013, 14:42) Like (0) Dislike (1) Reply
      They need to hurry up change the MD at the port otherwise they will need a loan to bail out of bankruptcy.
      We need VIP back !!!
  • ok my boy (25/07/2013, 17:37) Like (9) Dislike (10) Reply
    I agreed with Fahie contribution to the debate. The NDP needs to tell us as Fahie said what was the premise behind asking for this fee increase.
    • @ ok my boy (25/07/2013, 18:35) Like (3) Dislike (7) Reply
      I am with you all the way on this one
    • My 7 cents (25/07/2013, 20:53) Like (1) Dislike (1) Reply
      If your main two source of income is at risk of decreasing, you would eventually look at another way of making money to help fill the void.

      It's basically the same concept here. The financial sector is about to take a hit and the tourism sector is also weak. Therefore, the Government have to find other means of generating revenue. Without revenue, government can not function.

      This is common sense. Do we really need NDP or VIP to spell this out for us???

      It is inevitable. Unfortunately, it is happening at the worst possible time. In my opinion, this should have been implemented during the time of plenty. Maybe, just maybe, things would have been been better now.
    • GoonSquad (25/07/2013, 22:24) Like (3) Dislike (6) Reply
      Fahie should know..they left the government broke and no here playing plinky bird like he aint know what happening. All that money he paid that lady to re-vamp our Education system and she aint produce a leaf yet..if the government had that money they would not need to raise departure tax..It surprises me how he always playing angle when his ministry was to worst run finncially...talk about wasteful spending
  • ann (25/07/2013, 18:15) Like (1) Dislike (13) Reply
    What now exist qith this new tax on the poor is in need of a Full new Overhaul
  • TUK AND ROLL (25/07/2013, 19:01) Like (3) Dislike (13) Reply
    The people need to take to the streets and let it be known these increase MUST stop now.
  • Music (25/07/2013, 19:14) Like (6) Dislike (15) Reply
    The proposed raise is for govt revenue, not for the ports alone. Govt has to raise funds somehow.
  • ABC (25/07/2013, 20:26) Like (1) Dislike (0) Reply
    Every time I visit the Port to pick up my cargo, I see a set of new faces. Will some one please tell Claud that the BVI is not Detroit. This man is on one spending spree. Very soon the central Government will feel the ful weight of Claud's foolish and irresponsible behaviour.
  • dudeska (25/07/2013, 22:05) Like (3) Dislike (0) Reply
    Okay your revenue stream is not as big as it used to be,welcome to camp.Cut back on your govt spending,put your saved monies only towards infrastructure.Every family seems to think the child goes from high school to a safe job in govt.Look at how much it costs to run this overblown bureaucracy,its unbelievable.Every election there is so much nepotism ,oh dear its so sad but natural,its typical of these countries though that feed off themselves until they wither and die,its amazing how the UK can stand to watch,I guess they watch only because of the status of the offshore focus point.Button pressed then gone.Understand what you have,market it and enjoy.Otherwise the BVI becomes another statistic,sad really eh ?
  • the poor (25/07/2013, 23:25) Like (0) Dislike (12) Reply
    Gov’t needs to cut their losses on this tax hike on poor people
  • cspand (26/07/2013, 00:17) Like (1) Dislike (0) Reply
    how can we get a win-win for everybody?????......

  • BuzzBvi (26/07/2013, 00:24) Like (5) Dislike (18) Reply
    Probably not but you must be broke.
    Where are the computers you promised everyone in your district?
    Just let us know. Are you honoring that promise or not?
    People are getting tired of me asking so please let them out of their misery and say no I will not deliver what I promised or start to open the packages and get people using Fahie's computers.
  • Mistikal (26/07/2013, 00:28) Like (3) Dislike (0) Reply
    Thank you lodger. The Port won't be the only thing broke! Let them continue wanting government to hire and spend on schools, roads, sewerage, healthcare and don't bring in any revenue and see what happens in this place.
  • . (26/07/2013, 00:31) Like (4) Dislike (23) Reply
    You cannot milk hungry cows.
  • move on.com (26/07/2013, 10:14) Like (0) Dislike (0) Reply
    With them Filipinos they had working west end we will be broke soon
  • Who Knows! (26/07/2013, 10:27) Like (0) Dislike (0) Reply
    I am in full agreement with just about everyone who has blogged on this topic. It is hard for those on one side of the fence to see what it is like on the other side so just about everyone can have a legitimate point of view on this matter. I agree that government needs to cut back on the stupid spending and look for ways that would not create hardship on the people especially those who are struggling. This proposed tax increase will do just that. I think that it will help to put more funds into the coffers of the government in the short run as the tourist industry is solid at the moment as the ferries seem to carry the majority of the people why not increase it. However, as the tourist get more wise to the increase they themselves will realize that they can visit the Virgin Islands without having to come to the BVI and the numbers will decline. As the new tax goes into effect the locals will immediately limit the amount of trips that they make as well as limit the amount of family members on the excursion.
    Government had excellent opportunities to have the Cruise ship pier built at little expense to us but they rather to play strong and refuse to let Disney and NCCL to foot the development. They have the airport expansion as top priority but instead of putting the burden of the cost of the expansion on the real beneficiaries, it is placed on the tax payers. Lets take a real close look at this airport expansion. Do we have the infrastructure to facilitate an international airport9 With the major airlines being set with their existing schedules at the other islands, which one is going to make Tortola a daily stop? We would be lucky to get a weekly flight as our population would not support the need for a daily stop. The real reason for this extension is to allow the bigger private jets to be able to come. At the moment the private jets that are allowed to land here is only a small segment. The rest land in St. Martin as their insurance would not allow them to land on our short runway. The government needs to tell the whole truth and not have people believing that some big airline going come in and make Beef Island a hub. It is too late for us to compete with the other islands that have already promoted that aspect of their market.
  • RedStorm (26/07/2013, 11:01) Like (1) Dislike (0) Reply
    The diplomatic way politicians answer question is just amazing, I know those are professional people , but simple give the reason. "What is the purpose behind the raising of the fees at this time? Is the port broke? The Premier went on to give two ways government raise revenue well ,well, well. I would have perhaps done the same, use the diplomatic approach. Hon Christopher I don't think the house hear your thoughts on the tax issue, as I am not seeing anyone addressing your concern. As much as I think it is valid point, it is not consider. I like the emphasis placed on the "across the board" tax increase, if you analyze the thought.

    People wants to know they are not put into a discriminating bracket when the see things like, Local pay 5dollars departure tax, foreigners pay 20dollars in departure tax. Can you compare this with any discriminating bracket, oh yes , watch this blacks use this toilet, white us that toilet, No blacks eat here, Whites only. It is the same just move a bit in another direction. If I can think of it, compare it, then it have hundred of others is doing the same. Let invite our guest to come to our island in a pleasant way. I suggest to move the tax to ten dollars across the board.


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