Opposition slams 7% fee on money transfers
This means that when the bill is assented by Governor of the Virgin Islands, His Excellency Augustus J. U. Jaspert, persons will now have to pay 7% fee on remittances sent through money transfer services like Moneygram or Western Union.
Strong Opposition disapproval
Ahead of the bill debate stage, Senior Opposition Member, Hon Julian Fraser RA (R3) was the first to voice his disapproval, asking what relationship the bill had with COVID-19. The emergency sitting of the HoA was initially earmarked to handle matters relating to the virus and how the Territory responds through legislation, he said.
Hon Fraser also had an issue with a part of the Bill that he interpreted as authorising the Minister of Finance to revise the fee without debate from the House of Assembly (HoA).
Premier and Minister of Finance, Hon Andrew A. Fahie (R1), in his justification for the amendments to the bill, said 20% of the monies collected will each go into funds to support Education, Seniors, Land Bank, Agriculture and Fishing initiatives, with the aim of generating maximum returns for the improvement of the socio-economic wellbeing of the Territory.
“I stand by this initiative, this is not a tax on the poor,” Premier Fahie said, citing that the Territory should get a percentage of millions sent annually through money transfer services.
Opposition Members; however, shared a difference in opinion, with the majority saying the fee will cripple the poorest of the working class in the Territory, especially amidst the COVID-19 crisis.
Millions leave VI through banks - Hon Penn
“I am proposing that we look at other avenues to fund these instruments, not on the backs of what I call the most vulnerable amongst us,” Opposition Leader, Hon Marlon A. Penn (R8) said, calling the fee a tax on the working class.
Urging the Fahie administration to find another way to earn revenue, Hon Penn further said between $1.1 and $1.6B leaves the Territory on an annual basis through the banking system and other avenues like the trust industry and yet, he said, the Government was going after the working-class persons, “most of them make $7 an hour.”
Hon Fahie said that in 2019 close to $89M left the Territory and in 2018 the figure was $88M. He said during 2017, and in the midst of the Hurricane Irma devastation, approximately $57-58M left the Territory, and the Government received $0.
Hon Penn also reiterated that the approach needs to be rethought, "The train of thought is correct but we need to figure out a way that the monies that leave this country stay and invest and develop the country.”
“We have to find ways to make that happen, but not on the backs of persons who struggle, who all they want to do is take care of their family that they left behind,” the Opposition Leader said.
Double taxation – Hon Turnbull
Second District Representative, Hon Melvin M. Turnbull said persons are already subjected to fees in order to send monies and that they pay taxes.
He said the new proposal is crippling and akin to double taxation and urged the Fahie administration to reconsider.
56 Responses to “Opposition slams 7% fee on money transfers”
Instead of posting negative comments, I am calling on all Islanders to put the Premier and his ministers to the Lord in prayer, nothing more powerful than the God we serve... God will answer if you fast and pray.
In my country we gave Venezuelan 16,000 work permits and I/we don’t give ah f... how they spend
Don’t affect us seeing them at western or money G
Don’t affect us seeing them loading up boats with food to send back vene
We are happy for those receiving families
I don’t know when u all will learn
I don’t think u will either
That’s ur one way down island man this that send them home yada yada I born here umhmm we know we all born somewhere but rem no man’s land
Oh he’s coming ur Gona see the ruler he’s coming to put a stop to all
This
Half of y’all go church Pray dress in those big @$$ hats watching around to c who watching u
Ur soo holy yet ur heart is as wicked as the devil
Church on Sunday
Devil on Monday
Y’all wicked must be the blood..
This island ?
Antigua ?
Anguilla ?
Plz specify which island
We all live and it from
An island dear .
What else do we want the Premier to do. If Hon. Penn and Turnbull are against this Amendment to generate revenue, then they should suggest alternative or alternatives. I think that they are politically bankrupt. From my research, I found out that the Bahamas charges a fee for money transfer. What is more astonishing is that Barbados charges a fee for exchange of currencies. That is, if someone wants to change their monies into United States dollar or other currencies, they will have to pay a fee for the service.
It is a slippery slope.
The BVIslander has long expected that the rest of the world will pay for his or her wellbeing.
Wake up.
This will not be the case for much longer.
Financial services will die. The gap it has filled will be closed. Once that goes, everything else can’t be paid for.
Who pays for all the civil servants and their pensions.
Good luck BVI. Glad you reopened the right to fish. That’s going to be important in 20 years’ time.
There will be a reckoning.
" I stand by this initiative, this is not a tax on the POOR". WhoTF pocket you think you hitting the RICH.
1. What FUNDS?
People from the BVI and other countries live and work together, with the cost of living here everyone values every dollar they work for, they pay NHI(Mandatory),SS, payroll Tax, MASA,etc. We send monies to our loved ones at home to take care of our elderlies, to pay our mortages we attained way before coming here to work, to pay bills back home, you pay a fee to send your hard earned monies and now an additional 7% tax.
What FUNDS list them please, and who is going to ensure these monies not going into FUNDS to pay back stupid decision you and your previous administration have made.
Presently there is a global Pandemic COVID 19, don't you think apart from paying the landlord, elect. water, dish, internet bill, school fees even though school closed, from a salary not received as YET as a FRONT LINE WORKER, wearing a mask every day, being on call 24 hours, 7% tax on monies I send home to make sure my elderly parents and family are ok, is fair.
Show me a FRONT LINE BVIlander who are exposed every %$*& day to COVID 19 with no salary increase, only to the selected few, who kissed the previous administration ass, or are relatives to them, Increments I aint see that in years, and them fools rationing PPE's. 7 % tax on top of all the BS we endure in the BVI is fair.
Pass this bill soon alot of landlords will not be able to pay their mortages, make sure there is a FUND to seek future ESSENTIAL WORKERS, who are will willing do the work, and sacrifice their LIVES and being away from their loved ones.
Whomever pocket you wish to fatten, bill you wish to pay back, or balance an unbalanced financial account, find another way that EVERYONE living in the BVI will have to pay, it must be fair across the board.
Anyway, government is expected to provide services, ie, healthcare, education, economic growth and development, social services, infrastructure (roads, electricity, water, sewage, drainage, telecommunications), transportation, public safety (police, fire, security), public health and safety........etc. Most if not all of these services are non-rivaled and non-excludable, ie, one person consumption does not diminish another person’s ability to consume it and they cannot be withheld even in one does not pay, respectively.
Moreover, though government is expected to deliver these services, it has limited means of raising revenue. The economy is service-based and its revenue streams are tax, fees, fines, penalties.....etc. It does not get grant aid from the UK. And when needs exceed available funding, it borrows money, ie, Dr. D. Orlando Smith Hospital, Elmore Stoutt High School renovation project, Tortola Pier Park, road projects (what road you say?)......etc. It also enters into Public Private Ventures/Public Private Partbeships(Bi-water water project). As such, for government to deliver and continue to deliver high quality services, both locals and expats benefit and must contribute. Assessing a nominal fee on remittances seems to be reasonable means of raising some revenue. Should the fee be 7%, 6%, 5%.....etc? HOA should debate the pros and cons.
Further, per government information, on average $89M leaves the territory via remittances. In a small economy (GDP ~$1B, and average $400M O&M budget),$89M taken out of the economy is a huge leakage. Typically, to grow and sustain an economy, money must circulate in the economy as many times as practical. The VI/BVI imports practically everything it needs so there is a huge leakage in the economy with millions of dollars circulating only once. In other locales, money circulates 3-4 times up to 7 times. Virgin Islanders understand that expats travelled long distances from their homelands away from their families to the VI for better economic opportunities to help their families in their homelands. Virgin Islanders also are not averse to expats sending money home to their families. In fact, I’m confident that they support and encourages it. Nevertheless, to grow and sustain the economy requires everyone contributing his/her commensurate share. Covid-19 is not a hoax or a scam and is real so be safe.
Well, if there is nowhere else to take money and these 20% of the money raised will go to funds to support initiatives in the field of education, retirees, the land bank, agriculture and fisheries in order to maximize profits to improve the socio-economic well-being of the territory. Then maybe this is a positive decision ...
http://www.confiduss.com/en/jurisdictions/the-british-virgin-islands/
All you ignorant @$$ Vilanders who keep spouting about Island person, where the hell are you from a damn island one of the smallest in the caribbean, fortunate to be located where you arelocated and allowed to spend another country's currency.
Sign VIlander with sense!
It's not right.