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7% remittance tax was repressive & targeted most vulnerable– Hon Penn

- Calls on HoA to find more creative ways to fund Gov’t expenditure
Government Minister for Health and Social Development, Hon Malone A. Penn (R8) has called on Virgin Islands (VI) Legislators to find more creative ways of funding government expenditure rather than taxing the most vulnerable. Photo: VINO/File
Persons sending monies out of the Virgin Islands (VI) via Western Union and Moneygram were subject to a 7% tax on transactions, which was recently slashed by 50% to 3.5%. Photo: Internet Source/File
Persons sending monies out of the Virgin Islands (VI) via Western Union and Moneygram were subject to a 7% tax on transactions, which was recently slashed by 50% to 3.5%. Photo: Internet Source/File
DUFF’S BOTTOM, Tortola, VI– Minister for Health and Social Development, Hon Marlon A. Penn (R8) has called on Virgin Islands (VI) legislators to find more creative ways of funding the government's expenditure rather than taxing the most vulnerable.

The Minister was at the time speaking during the continuation of the Sixth Sitting of the Fourth Session of the Fourth House of Assembly on August 9, 2022, when a 7% remittance tax on monies sent out of the VI was reduced to 3.5%.

More creativity to generate funds - Hon Penn 

“We have to be more creative, in a way that we find ways to fund our government expenditure, to fund the services that are necessary to make this country move, and to be able to support the people in which we have the responsibility to represent, Madam Speaker.

Hon Penn added, “I'm happy that we are here to reduce the percentage from what it was, from 7% to 3.5%, but I'm equally concerned that we need to be more creative in a way that we generate revenue for this country.”

While serving in the Opposition as Leader, Hon Penn had rallied against the tax, intended to fund local development areas including the education system and seniors.

No targeting of the vulnerable - Hon Penn 

“We have the expertise, we have the competency, we have the ability amongst persons within this territory... That we must not, and we should not allow the most vulnerable amongst us to bear the burden of the things that need to happen in this country and this essentially is what this bill [was] at the time, and I said this at the time of the debate, this is what this bill has done,” Hon Penn added.

“He said while the estimated [amount] at the time was some $70 million leaving the VI, it was being sent by persons with children at university, immigrants working in the VI who represented persons who had to pay taxes across the board in many other areas.

“And to add an additional burden to those people, I felt it then and I still feel now is something that we should not have done, and we have to find more continuously more and innovative ways.”

More money leaves VI through banking system- Hon Penn 

He said on the contrary, at the introduction of the remittance tax, some $1.5B left the VI through the banking system, a figure that has now increased, according to the legislator.

He added the levy has further pushed persons to use the banking system to move money as well as underground means to get money out of the VI, which has made it difficult to track the movement of funds out of the territory.

Meanwhile, Minister for Transportation, Works and Utilities, Hon Kye M. Rymer (R5) has called for the remittance tax to be scrapped altogether.

19 Responses to “7% remittance tax was repressive & targeted most vulnerable– Hon Penn”

  • Hmm (23/08/2022, 13:57) Like (5) Dislike (0) Reply
    Interesting.....
  • WEW (23/08/2022, 14:04) Like (9) Dislike (11) Reply
    This was implemented to encourage ex-pats to leave and don't come back. Just what the Head Coach and the HOA wanted.
    • Sleepy Joe (23/08/2022, 19:40) Like (22) Dislike (1) Reply
      My US citizens taking hundreds of thousands of US dollars out of America and spending it in the BVI, don’t hear me crying like a small child about lost dollars. When someone works hard and pays taxes on their money it’s theirs to keep and spend as they want. Just because your government too stupid to manage money the little man shouldn’t have to suffer. End the tax completely. Just another sign of your incompetency.
  • regret (23/08/2022, 14:31) Like (12) Dislike (4) Reply
    This perspective was known from the inception of the idea of a targeted tax on the most vulnerable. The other side of the coin is how much money enters the BVI???
    Note that the world is a Cycle. It is always an ill-fated ideology to grab more and more for ourselves without considering others. This remittance tax should be scrapped altogether (most ppl sending money already pay tax legitimately) and find more innovative ways to collect revenue from the Whole rather than from a selected and vulnerable group. Inclusiveness is the only sustainable way to build a nation. #fixit.
  • Ghost (23/08/2022, 14:51) Like (14) Dislike (2) Reply
    I find it very interesting that you were in power when this was levied. Why didn’t you all do something about it then?
    • @ ghost (23/08/2022, 17:03) Like (4) Dislike (0) Reply
      when these guy have the power to make changes they do nothing but when them form the opposition automatically all the brilliant ideas set ah waste
    • voter (24/08/2022, 20:34) Like (1) Dislike (0) Reply
      This man and Mitch were the only 2 that were against this from the beginning!! Get your facts straight..
  • ndp (23/08/2022, 15:18) Like (2) Dislike (12) Reply
    which political party should be given the mantle if we have an election in 2023 not VIP for sure
    • Actually (23/08/2022, 21:12) Like (1) Dislike (0) Reply
      The world will be better off without politics. It's a very dangerous, power struggle and greedy organization
    • ???? (24/08/2022, 03:13) Like (0) Dislike (1) Reply
      Neither should NDP. Independents or perhaps group of persons with similar goals but not as a party. These party teams need to be put to rest for a while.
  • Rubber Duck (23/08/2022, 15:34) Like (10) Dislike (4) Reply
    As many of us have said here and elsewhere. Get rid of it altogether.
  • selvin (23/08/2022, 15:44) Like (1) Dislike (0) Reply
    The voting public will act as well. We who decide who will be the next politicians are paying close attention and will do what we have to do in the up coming elections. If anyone fails to put the voting public first then that person will feel it in the poles.
  • Tadow (23/08/2022, 18:56) Like (0) Dislike (2) Reply

    Cousin Marlon you full of %.

  • bvi islander (23/08/2022, 19:36) Like (0) Dislike (5) Reply
    Other ways of generating finance needs to be put in place before thinking about scrapping the 3.5% remittancetax. Don't let us be foolish!!!
    • ok (24/08/2022, 03:17) Like (8) Dislike (0) Reply
      Maybe the general public needs to be reminded why it was put in place, then explain why we need it again? It is double taxing people- it is wrong. Scrap it
    • jah know (24/08/2022, 12:14) Like (0) Dislike (0) Reply
      There were/are ways of generating money here through other taxes. It's our Government spending the money recklessly and not spending it on priorities and places where it really matters.
  • 999 (23/08/2022, 21:23) Like (3) Dislike (1) Reply
    a substantial number of residents using work permits are doing 10 additional jobs and pay not tax on the money they make so tax the money they exporting €run talk dat ¥¥¥
  • Fit was bad news (24/08/2022, 01:51) Like (4) Dislike (0) Reply
    Foy rule like a strong man with an iron fist listen to know one. His bad plan back fired. Island people are very smart and creative, they found other ways to send their money leaving Money Gram and western Union to suffer historical losses in income .. Marlon plan from the start was always a better plan. The Chinese plan. Tax all money sender's those who sending in excess of $5000. .1%...Those sending between 2 to $5000.00 . 2% and those sending below $2000.00. 3%. That was the balance and fair approach that was needed. Govt would have gotten a lot more by pinching off a little from a lot of people, rather than taking that big chunk from a few people.


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