BVICOC warns of increased prices after gov’t temporary relief measures end
These relief measures expire today, Monday, August 31, 2026, and the Chamber, in a statement today, is calling on the government to intervene once more, as “the international conditions that made these measures necessary have not disappeared”.
The Chamber said businesses continue to face elevated product costs, freight rates, insurance expenses and international logistics charges, coupled with significant shipping delays and limited availability of certain goods.
The Chamber added that consumers may not feel the full impact immediately as “much of the inventory currently sitting on shelves and in warehouses entered the Territory under the previous concessionary structure”. However explained that as that stock is replaced with new inventory carrying higher product costs, higher freight expenses and restored Government charges, those increases will progressively work their way through the economy.
With that logic, the Chamber said it expects some of the more noticeable effects could therefore emerge during the Christmas purchasing period and into the months thereafter.
BVICOC presented practical compromises to gov’t
The BVICOC said it has communicated to government repeatedly that it was not asking for the revenue to be eliminated indefinitely but to implement alternatives designed to protect government’s normal revenue while at the same time reducing extraordinary inflationary pressure on businesses and consumers.
Among these measures were: extending relief measures through December 31, 2026; continued calculation of customs duties using FOB rather than CIF valuation; establishing a documented historical baseline; grandfathering goods already purchased, shipped, or in transit; and introducing a phased rollback rather than restoring all charges simultaneously.
Sinclair H. Flemming Jr., Chairman of the BVICOC said, “We presented Government with multiple options because this never needed to be an all-or-nothing decision…There were several ways to protect Government revenue without placing the entire increase back onto businesses and consumers at once.”
Transparency surrounding the issue
The Chamber said it believes transparency around this issue is particularly important.
“When international product prices increase, the overseas manufacturer receives the additional product cost. When freight increases, the shipping and logistics providers receive the additional freight cost. But when Government charges are percentage-based and the underlying taxable value increases, Government can also collect additional revenue from the same inflationary event.”
Business, BVICOC added, is caught between higher supplier costs, higher logistics costs and potentially higher Government charges; and all three eventually find their way to the consumer.
“The Chamber recognises Government's responsibility to fund public services and maintain fiscal stability. Its argument is not that Government should collect nothing.”
BVICOC said its position is that government should not defend solely on extraordinary crisis-driven inflation to increase collections from businesses already struggling with those same increases.
“The objective should be to maintain reasonable Government revenue while preventing an international crisis from being unnecessarily amplified once goods reach the shores of the Virgin Islands.”
Monitor landing costs
Businesses were encouraged to monitor their landing costs carefully, and consumers called on to understand that price increases appearing in the coming months may reflect costs entering the supply chain today.
BVICOC added, “The Chamber will continue advocating for policies that protect Government revenue, business viability, employment, access to goods and the purchasing power of Virgin Islands consumers.”
Virgin Islands News Online reached out to Junior Minister for Financial Services, Trade, Economic Development, and Digital Transformation Hon Lorna G. Smith, OBE (AL) for comment but did not receive a reply up to publication.
Our news centre also reached out to Deputy Director of Trade Mr Lincoln E. Bobb, who informed us, “We will assess and send out information.”
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8 Responses to “BVICOC warns of increased prices after gov’t temporary relief measures end”
What the Chamber is saying is simple fact. While I'm not certain based on the surging inflation whether the previous governmental intervention served its intended purpose, I can say that a roll back of whatever was done will result in increased prices for the consumer.
We finally have a Chamber that is vocal about real issues. Thank God!
Qqqof public have benefited so far, but rising hike of daily needful items will rapidly be moving up.
The truth is the vast majority of people will be burden heavily because their income, if in fact they are getting an income, if small, will heighten the pressure against them to survive normally.
As I see it, this government vision of leadership is deeply tilted against the poor, but rather favorable suited for the rich and hight income earners. A change of government is needed no later than the next coming general elections, truth