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Wade Smith: “Between $2.7 million to $3 million would be lost” by new Customs & Duties Bill!

Commissioner of Customers Wade Smith told Standing Finance Committee that the new Customs and Duties Bill passed last month by the NDP Administration will cost us to lose some $2.7 million to $3. million dollars per year.
Businesses will not receive refund from the Customs Department, but that department will prepare the documents and forward them to the Ministry of Finance who will forward them to the Treasury Department for cheques.
Businesses will not receive refund from the Customs Department, but that department will prepare the documents and forward them to the Ministry of Finance who will forward them to the Treasury Department for cheques.
ROAD TOWN, Tortola, VI - The much talked about Customs Management and Duties Amendment Act 2012, an initiative by the National Democratic Party (NDP) Government of Premier Dr. the Honourable D. Orlando Smith to bring relief to businesses so it can trickle down to customers, will cost the government to lose an estimated $2.7 million to $3 million annually, if and when the new proposed Bill is implemented.

This was disclosed by Wade Smith, the Commissioner of Customs (COC) during his presentation before the 2012 Standing Finance Committee (SFC) meeting. The member for the first district Honourable Andrew A. Fahie asked the COC “what amount of annual revenue would be lost by the Customs Department undertaking the initiative?”

The COC stated before the SFC that “it was estimated that between $2.7 million to $3 million would be lost annually.”

New Bill retroactive to February 1, 2012, refunds will be forthcoming

The new Bill that was announced by Minister for Finance earlier this year and passed in the House of Assembly on February 14, 2012, will be retroactive to February, 1, 2012, according to the Financial Secretary (FS).

In responding to a question from Honourable Fahie, the FS told the SFC that the “COC would not grant refunds immediately; however, the policy was in effect as of 1st February, 2012 and , as such, the necessary administrative steps would be taken…”

Since this policy was to be retroactive to February 1, 2012, Honourable Fahie enquired whether it would be reflected in the legislation. The FS stated that, “it would be taken care of legislatively”.

Furthermore, Mr. Fahie enquired whether customers who already paid during that period would be issued a refund from the Treasury Department. The FS stated that the COC was responsible with dealing with the matter administratively, once “matters were submitted for refund”.

To further clarify the matter before the SFC, the same question was put to Mr Smith. The COC stated that the documents would be prepared by the Customs Department and forward to the Ministry of Finance who would thereafter forward the documents to Treasury Department which would be responsible for issuing the cheques for the refund. He stated that Customs would not directly refund customers.

Criticism to Bill

The Customs Management and Duties Amendment Act 2012, was hastily passed on February 14, 2012 in the House of Assembly. The bill was amended to make way for duties to be relieved from the cost of Freight and Insurance of imports by businesses with the hope that these savings will be passed on to customers.

The savings, for consumers, however, is not expected to be dramatic, if any at all as the concern is whether the merchants would pass it on to the consumers.

According to Tortola resident Kishmet Daniels, she also doesn’t believe the savings would be passed on and questioned what difference would it make in saving a few pennies. She also said it would still be much cheaper to shop in St. Thomas as against Tortola where she says prices are outrageous.

Furthermore, one talk show host was asked whether it would be prudent for Governor Boyd McCleary to sign the recently passed Customs and Duties Bill since there was a visit expected earlier this year from the UK to review the Virgin Islands finances and the team may have some concerns on it.

Douglas Wheatley, speaking on the radio programme ‘Speak Out BVI’ on February 21, 2012 said concerns are still rife as to whether savings will be passed on to the consumers because the legislation itself did not make an enforcement provision to ensure that the savings were passed on by the merchants and this change does not seem to be for the direct benefit for the consumers.

He also said speculations are common on the bill because persons were not privy to it before it was passed.

“The difficulty there is that when a bill comes to the House it has its first reading and nothing else happens after the first reading but then it is gazetted and it becomes a public document and every Tom, Dick and Harry can have access to it, read it and then make your comments as you see fit to your representatives but this wasn’t done so some of us have not seen this bill yet…”

Second District representative Honourable J. Alvin Christopher had in fact expressed this concern in the House and had even objected to a second reading of the said bill.

12 Responses to “Wade Smith: “Between $2.7 million to $3 million would be lost” by new Customs & Duties Bill!”

  • yellow (26/03/2012, 15:32) Like (0) Dislike (0) Reply
    oh and they say we broke?
    • dog meat (26/03/2012, 23:46) Like (0) Dislike (0) Reply
      broke what? please the NDP too lie did you all hear Uncle Ralph speech?
      • under the bus (27/03/2012, 13:00) Like (0) Dislike (0) Reply
        look at the NDP give their friends a big tax break then asking for we poor people to pay more at the west end port..same old thing.
  • hm (26/03/2012, 15:41) Like (0) Dislike (0) Reply
    some of them business pocket going be fat cause they won't look to trickle down a thing. I think maybe they should have even specified specific types of businesses instead of all businesses.
  • Mitt (26/03/2012, 16:39) Like (0) Dislike (0) Reply
    Where is the elected opposition they are silent on so many matters. This government is on a collision course. They give away 3 million to business friends and propose raising departure tax from 5 to 20. I understand the economy is in dire shape but taxing the small man is no where to go. Everybody aint rich like Skeltons to shop at high prices.
  • Just saying (26/03/2012, 19:15) Like (0) Dislike (0) Reply
    Like I've been saying all along,this Bill was meant to help the rich get richer. It was never about consumers.
  • critic (26/03/2012, 21:36) Like (0) Dislike (0) Reply
    well sah! what kinda dummies we have in power in this country?... we broke and giving away revenue?...and them want to slap on a $20 departure tax on our backs?
  • x factor (26/03/2012, 23:22) Like (0) Dislike (0) Reply
    wade bouy me hope dem aint send you home again for speaking out
  • con 2011 (27/03/2012, 00:02) Like (0) Dislike (0) Reply
    so we got con again by the NDP and their rich friends...not me again with that gang....
    • hush (27/03/2012, 08:13) Like (0) Dislike (0) Reply
      oh shut up! ah u was too busy doing the "thing". now they doing that "thing" you bawling. TEK THAT! Imagine if OJ had got elected? hmmm ah set ah merry birds!
  • Well sah (27/03/2012, 08:30) Like (0) Dislike (0) Reply
    I just don't understand what is going on in this country. Gov't rushes and passes a bill that will cost the gov't approx 3mil a year in revenue after they announce increment cuts to gov't workers and now skelton talking about raising departure tax at ports to $20. What the hell is going on? Gov't pulls a bogus stunt to help out themselves as business owners and their rich cronies and then want to turn around and tax the citizens of the BVI more!! The public workers represent the bulk of hte BVI workforce and if they have less money to spend guess what? They will spend less and our economony which is already stagnant will slow down even more, Dr.Smith please stand up and be a leasder to our country. You allow Skelton to mess things up before. Don't let him do it again.
  • xz (28/03/2012, 10:26) Like (0) Dislike (0) Reply
    Agreed that the less money people have at hand, the less they will have for spending in the economy.


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