Effective February 1: Import duties reduced!
Premier Dr. D. Orlando Smith made the announcement today February 1, 2012. Photo: VINO
ROAD TOWN, Tortola, VI – Effective today Wednesday February 1, 2012, persons importing goods into the Territory will see a reduction in their duty charges as they will only be required to pay duty on free on board costs as opposed to the previous practice of paying on cost, insurance and freight.
This announcement was made by Premier and Minister for Finance Dr. D. Orlando Smith at a press conference held earlier this afternoon as one of the measures implemented by Government to help address the high of living in the Territory and expects lower prices being handed down to customers.
“So here is what we expect with this change in duty assessment. We expect that the savings to the local businesses will allow them to provide incentives and lower prices to the consumer. The 3.7 million dollars in revenue foregone by the Government of the Virgin Islands we consider as an incentive to local businesses that should accrue benefits very soon.”
He said in the effort to facilitate the success of this initiative, there will be joint supervision by the Ministry of Finance and the National Business Bureau, and the combined effects of its existence reviewed during and at the end of the next 24 months.
“People in this Territory are subjected to very high prices especially for food and household items that cause them to experience hardships in meeting the needs of their families. These hardships have negatively impacted the quality of life that we are accustomed to in this territory as more and more of our residents have difficulties with basic survival,” the Premier stated.
An aisle in one of the VI's supermarkets. Photo: VINO
The Territory’s leader added that he has heard the cries of the people and the complaints of the fluctuation of prices at the supermarkets and believes with the reduction in duties it will bring down prices on products and keep the money in the Territory.
“I hear the complaints that prices fluctuate widely on the supermarket shelves and that we are spending more of our paychecks for food, clothing and shelter. I know that is why an increasing number of you shop overseas and spend in excess of an estimated $40 million per year doing so. We need that money to stay in our economy and we believe that if we were to become competitive in prices, a large portion of that money would indeed remain in the BVI. If we keep that money in our economy, then our local businesses hire more, turn over their products faster and yes, pay more taxes; a win-win for everyone.”
12 Responses to “Effective February 1: Import duties reduced!”
Leave a Reply
Follow Us On
Related posts
Popular Tags
Recent Comments
- U. Smith on Businesses expect far too much from school leavers – Hon. Fahie
- rat on VI pilots lobbying for national airline
- Mediocrity? on Businesses expect far too much from school leavers – Hon. Fahie
- it for real on The Virgin Islands & the US Virgin Islands
- oh boy on Hon. Vanterpool: It’s time to solve VI’s problems
is about time the NDP does something from just sending home people and fooling the youths…
for real and tekin sign and logos from school…..good to see they have done one thing since elections.
the big question is, do you think the business owners will fairly and quickly pass along the savings????? I think not as they have not before even when the VIP had did simular things….
no way jose…greed will still take over
for real “ONE EYE” Goodness gracious does this mean One Mart, Rite Way and Bobbies will be cheaper? I will wait with my figures cross!!!!!
I have been in he retail business for well over 25 years here in the BVI……..your comment has left me confused and baffled….what on earth has the VIP or any other government in the past have ever done anything like this??? i hope you are not talking about…. please explain……..this is a welcomed move by our government…….Now if we can only get that freight down aswell…..20ft container to ST. Thomas is 1200.00 while to tortola is 3200.00………great move! being more competitive means more revenue……..i cant wait to see how this will translate to our prices…..paying duty on freight was always unfair for any business in the BVI……
This move does not apply to food only. Remember one administration did the same for steel and the suppliers still did not lower their price to pass on savings to consumer. Without proper ‘price control’ this initiative will never show the proper results as intended.
‘one eye’ you are so right so let’s wait and see.
ayo dont start celebrating yet…this was done to help the merchants and we all know that most of them are greedy, so lets wait and see if the savings will trickle down
thanks for this dr. smith…but it seems like the stress of the job showing on your face.
dr. smith has it going on he is the best dressed premier…the others who could dress good are Dr. Pickering, Fraser, Alvin, and Ronnie the others need to go to fashion school deman..lol
Now he need to mandate that the shops show before and after prices because all this move doing is putting more money in the shop owner hands and still none in our!!!!!