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HoA debates bill for Gov't to charge 7% fee on money transfers
The Premier made the announcement, today, Friday, April 17, 2020, during the Seventh Sitting of the Second Session of the Fourth House of Assembly at the Save the Seed Energy Centre in Duffs Bottom, Tortola, and said the fee will be collected by the licenced transmitter to be paid to the Financial Services Commission (FSC) and will be paid over to the government and deposited into a fund earmarked for various national development initiatives.
While the fee is not in effect as yet, the Premier said the HoA will work to have it in place by Monday, April 20, 2020, when the 14-day lockdown in the Virgin Islands lifts and the Territory transitions into another managed curfew and 4 shopping days.
Education, Agriculture, Seniors & Land Bank to benefit
He said 20% of the fee will go towards programmes benefitting seniors, and another 20% will go towards educational programmes, infrastructure and scholarships; specifically, medical, hospitality, fishing and agriculture scholarships will benefit.
Programmes in the agriculture industry will get 20% and another 20% of the revenues will go towards to fishing industry.
Finally, the Premier said 20% will go towards the Land Bank and first-time homeowners and all the initiatives will be subject to Cabinet approval.
“In order to maximise the revenue that will be available to support these initiatives, the monies collected by the commission will not be subjected to the statutory sliding scale percentage withhold and deducted by the Commission, and other revenue that the commission collects and pays over to the government under the Financial Services Commission Act.”
Gov’t looking to maximise returns - Hon Fahie
He said the aim is to generate maximum returns for the improvement of the socio-economic wellbeing of the Territory.
The Premier also affirmed that he stands by the bill and in justifying the amendments said he expects ‘fireworks’ over the move and urged the Opposition to challenge it, debate it and if they disagree, come up with a better alternative.
He said in 2019 close to $89M left the Territory and in 2018 the figure was $88M and the government received $0.
Further, Hon Fahie said that during 2017, in the midst of the Hurricane Irma devastation, approximately $57-58M left the Territory and noted that the fee is not a tax but rather the government getting its fair share to help the poor, vulnerable and the needy.
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84 Responses to “HoA debates bill for Gov't to charge 7% fee on money transfers”
Poor man, all we need to do is open a bank account in both countries for the same bank use your phone for the bank app and do an online transfer between accounts at the same bank. Where there is a will there is a way
Hip hip hurray tax them a$$ yes keep some of that money in the country or let them go back home to their mansion that they build they were getting their house build tax free off the BVI
Why don't they collect the monies owed by the friends of the politicians.
They can also leverage a gasoline tax say about 5¢ on every $20.00 worth of gas sold this way the burden would be more equally shared among all residents of the BVI.
89 million is a figure the Premier put out without the requisite statistical source. Again that is money that you send after you have paid taxes, SS, NHI etc.
Ill-timed, discriminatory and unfair.
I do it for the love, not for the likes. I voted for this Government but I do not blindly support anyone.
for those of you who are saying that the BVI gave expats cars ..please refrain from such foolish statement as these expats have worked very hard to be able to buy themselves a car and in doing so also supported the BVI local economy by shopping here and paying their taxes. By the way most locals go to St. Thomas to shop!!!!
The BVI at its most vulnerable, instead of the Government bringing forth legislation to address the many persons who are without jobs, the small and medium businesses who are in financial trouble they come up with a tax. Yes it is a tax on transactions and services. Also it is a tax on a chosen group. A group of persons who some work for minimum wage $6 /hr and some higher. A group of persons who work hard for their money and now have to subjected to a whopping 7% tax on remittances? So in addition to 8% tax after the first 10k, 4% SS, 3.75 % NHI, 5% to Western Union and now 7% to the government a total of 27.75% tax for one group of persons. Other folks would be paying 15.75% . This is not Robin Hood economics but Rob the Hood economics.
According to Hon. Turnbull we have 70 million dollars uncollected tax revenue from locals. Why is no effort made to collect those funds? Add to that there is 3 x more money sent via bank wire transfer and this is from the upper echelons of the economic class and businesses why is that not taxed? 1.5 billion annually is sent out via banking and trust system. This is not Robin Hood economics, but Rob the Hood economics.
Premier Fahie's tone appeared angry at times why considering these circumstances? He claims I just gave 1500 status so is it safe to say that you gave now is time to take? you would think he would have a more sensitive tone considering the times.
Taxing the middle to lower income earners with a looming recession is not a good idea as the persons who tend to spend the most are in those brackets. Taxing them means less disposable income to buy groceries, patronize restaurants and bars, retail stores, electronics etc. So if someone sends $700.00 out that would mean $ 49.00 local tax plus that is $49 out of the hand of the retailers, electronics, bars or restaurants.
Alternative options would be trying to cut costs. We are paying exorbitant rents all over the BVI. Why can we not build another Admin Complex at Palm grove with the vendors on the ground floor. That can provide some short term stimulus in terms of construction and long term savings with rent. Same can be done in VG. Scale back on non-essential travel, not that we can go anywhere soon. Out a freeze on consultancies. Then there is the bloated civil service that nobody wants to touch but at some point that will have to be addressed. Renewal energy can provide jobs and taxes. Add that to the outstanding receivables that persons owe in taxes, SS, NHI etc.
However focusing on one group of persons and raising their taxes alone by 7% is not the way to go and definitely not the right time. The Government needs to reconsider this tax.
soon they.ll be introducing a VAT or sales tax on everything that is sold IN the BVI. when does it stop. ??
Surprised ? Yet still in any disaster you need grant , manpower from other countries !!Not good . See how many pushing illegal activities and use that money for those purpose
This is just a double taxation of money already taxed as earnings.
It is a tax we all will have to pay, as long as we are using the services providers to send money out of the Territory, and trust me, we ALL will benefit from what is collected. For those who don’t know, seniors who make it to 100 years, and are living here over a certain period of time, regardless of where they originated from, receive the same $5,000.00 that those born here get, and the Adina Donovan Home for the Elderly has housed senior citizens born here and those not born here. If you don’t believe me, you have only to ask around.
My biggest concern is that the correct mechanism is put in place by government for timely payments from the companies that send out the funds. I am saying this as years ago, a tax was imposed on persons flying out of the Territory and although it was collected by the agents, as mandated by law, it was seldom paid into the government's coffers. Hope this loophole is tightened up this time around,
We have to be able to look at the bigger picture.
Anyone else will have other means to send payments interntionally.
I heard the Hon. Turnbull mentioned that some person will be paying about 26% with all the taxes we have already imposed on them, but he left out the 20% tax which most of them donated to the churches on Sundays, and still persons struggling to pay rent? and it soo sad because most person that will benefit for that same 7% are always the same outsiders, who will benefit from the senior homes that will be built because most of them do not return back home. We are not for our own people.
FYI I stand on the side of fairness. I have for a while now talked about the discriminatory policy to lock out locals during this epidemic. However I find that a lot of the conflict and tension is mostly due to the unfair treatment sometimes to the extent of exploitation and discrimination of expatriates especially those from other islands. $ 6 is the minimum wage so that is $960, then you have to pay rent, work permit fees, visa fees, taxes, utilities, SS, NHI and we have not even touched food and transportation costs.
I believe this policy will backfire by persons finding other means to send their monies and persons leaving the latter I guess would please some. Guess what? Who will pay the rents? Who will patronize the bars, the restaurants, the festive events? Even those who stay would have less disposable income to do those things.
Secondly, this is double taxation as you already pay tax.
None of the countries you mention charge taxes on remittances. All those countries do have an expatriate populace.
Churches do not have a tax. It is not mandatory that you give an offering.
Then the ill-timing of this legislation with us in the midst of a unprecedented crisis and a looming recession. Who you target? The most vulnerable. Oh here is the funny one the Premier said the banks next. I would not hold my breath.
Rob the hood economics. Shame...Shame..Shame...
Is this part of the government’s economic recovery plan to assist those persons who need assistance during this pandemic fallout? Is this how the VIP government intends to govern by taxing the people more and more? It almost seems discriminatory. Are they taxing the banks for wire transfers? Why let them get away that’s where the real money is. The government better get their heads out the clouds. This country is in serious problems if this is all they can come up with after nearly 4 weeks of lockdown.
Please consider:
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PRESSURE
We know where we stand on the bvi it’s no secret how they feel about us
Give them a change they physically put us on a plane
That being said
Immigration time
Labour permit
Rent
House Bills
Food
Social security
NHI
Airport tax to enter d airport
Tax when leaving
Some of us don’t even get out complete salary
we does stay hungry eat less to send home money for families
Monies we worked for
Why is it ppl work all over even Canada n it’s actually set up to send it money back home with no prob
I find the bvi to be vicious towards us and money
They Gona charge us just By even seeing us on the road
One thing thee Red usd will collapse soon and everybody going home
It’s then u will know
And also the day u close ur eyes and u face ur first judgment u know when God tell u depart from me evil doer I knows u not
Always remember to everything we do there’s a prize a reward
During this lockdown I took my groceries share
I cook share
Nobody ask me but I did what I knew was right something most of u bvislanders wouldn’t know being ur brothers /sisters keepers
U see when u give what u have
God is going to give u what u need
My husband is local I am not
He sees anything I do I am blessed goodness n mercies follows me
Btw he’s one bvi man that loves island ppl treats his workers well and considers us all one human being
One day we will leave willingly watch and see
And hope u don’t end up down island for bread for ur family and b treated this way
U all don’t have an idea how u all makes us feel as humans
I will continue to b good
I will not let any of u change me as I would be just like u
Another note I never applied for status here despite being married for the same reason unless or until I feel welcome I don’t want or need it I have my citizenship in my country
Y’all does run down USA passport but don’t want us our kids to have urs
God will deal with u he has d final say ur day is coming u better believe it all of us day are coming Soo live bad hate us rebel against god commandments love thy neighbors as u love thy self answer to him that sit on the white throne
Is wasn’t for my husband and borders closing or closed I would happily leave and don’t look back
When will slavery done for blacks ?
Granny said when ur own ants bite u it bites u hard she’s right ...
He said 20% of the fee will go towards programmes benefitting seniors, and another 20% will go towards educational programmes, infrastructure and scholarships; specifically, medical, hospitality, fishing and agriculture scholarships will benefit.
Programmes in the agriculture industry will get 20% and another 20% of the revenues will go towards to fishing industry.
Finally, the Premier said 20% will go towards the Land Bank and first-time homeowners and all the initiatives will be subject to Cabinet approval.
This is pure usury. It is not unbelieveble to me. Xenophobia is something running deep in this place. But still, this law is so obscen no matter how u look at it. I swear, there r ppl in the BVI who would not hesitate to have expats for slaves if that would still be legal.
And then you r giving me the God/Jesus talk.
Hypocrites!
Very unfair.. for someone like me who have an old and sick mother... And a time like this.. when I don't know when I will make a dollar... my gift shop close up.. so no income will come in for the rest of the year... 7% is too high.... should put the tax on rum shop and bars
and considering that the bvi once carried taxes as high as 20% for the employees I dont see an issue with 7% on funds being sent out of the territory. We travel to diffrent countries and admire their infrastructure how do you think they came to acomplish the things they have, definently not by having a free for all , it was accomplished by TAXES people. England taxes as high as 45%Canada taxes as high as 33% USA as high as 37% France as high as 45% Japan as high as 55% Sweden as high as 61%
The government has to start somewhere and this is simply the choice that was made , I would say more but I'm sure you grow weary of reading my lengthy commentary do have a blessed day.
Moreover, the more often a dollar circulates in the economy the stronger the economy. In some communities, a dollar may circulate 5-7 times; however, in the VI, it may circulate at most 2 times. Further, keeping and spending money local creates a multiplier effect in the economy. Though it will be controversial, assessing a fee on remittances seems like a reasonable source from which to raise revenue to help in delivering basic services. Across the globe, remittance is huge.
“According to the World Bank, in 2018 overall global remittance grew 10% to US$689 billion, including US$528 billion to developing countries. Overall global remittance is expected to grow 3.7% to US$715 billion in 2019, including US$549 billion to developing nations (Wikipedia).” The leading recipients of remittances include India, China, Mexico, Philippines and Egypt. Latin American and the Caribbean region receives approx $85B; the US is lead country from which remittance flows. In developing countries, ie, most Anglophone Caribbean countries, remittances are a vital part of economy and figure significantly in their GDP. It is the economic life blood for these countries. Thousands of families in these countries rely on weekly or monthly remittances from families abroad. The VI too in the past depended on remittance, ie, St. Thomas ( just keeping it real).
In keeping real, the VI depends heavily on skilled and non-skilled expat labour; the majority of the workforce is expat. In fact the ratio of the population is approx 40:60 local to expat, respectively. All residents are demanding and using more services but have a disdain for paying more to deliver more services. Each resident must be willing to contribute his/her share to deliver services. Yes, the 7% or whatever the final number is will reduce the amount of money received by families. For example, for countries using the Eastern Caribbean(EC) dollar, a $500 remittance with the 7% fee will mean $465 received. This $35 reduction will equate to approx $94(EC), not an insignificant sum. Understand that some may reasonably debate that the taxes are already paid on money earned and may see this 7% fee as a double, triple or quadruple taxation. True. But all residents use, enjoy and expect the services government provides and should commensurately contribute. One can argue about the level and quality of service but that is another debate. Anticipate a vibrant, constructive, healthy counter debate on this issue. But it is all good.
Look at the education system. Maybe some of our children may benefit from better schooling and scholarships. I remembered when I read of the Social Security Board when it was introduced many persons were against it. However, today some of those same persons are benefitting from maternity, sickness, disability and old age pension that will be paid until death. Then there is funeral and survivors benefits.
It is a human characteristic to react whenever some changes are introduced. Be it as it may, the country has been good to many persons including locals and expatriates. As we progress all the clamouring will be over and in a short while there will be calm.
I fully support cause it’s the truth.