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Hon Fahie: Gov’t ‘definitely looking into’ 7% remittance tax

Premier and Minister of Finance Honourable Andrew A. Fahie (R1) has revealed that his administration is still reviewing the 7% tax on all monies leaving the Virgin Islands through money transfer services like Western Union and MoneyGram. Photo: VINO/File
During a press conference on January 28, 2022, Premier Andrew A. Fahie (R1), right, was asked by reporter Zan Lewis, left, about 'dropping' the 7% tax on money transfers in the territory. Photo: Facebook
During a press conference on January 28, 2022, Premier Andrew A. Fahie (R1), right, was asked by reporter Zan Lewis, left, about 'dropping' the 7% tax on money transfers in the territory. Photo: Facebook
There have been mixed reviews on the tax, with some saying too much money goes out of the economy while some believe that the tax percentage is too high and it is unfair that the Government decided to introduce the tax during the pandemic and is collecting taxes from monies that have already been taxed. Photo: VINO/File
There have been mixed reviews on the tax, with some saying too much money goes out of the economy while some believe that the tax percentage is too high and it is unfair that the Government decided to introduce the tax during the pandemic and is collecting taxes from monies that have already been taxed. Photo: VINO/File
ROAD TOWN, Tortola, VI- Premier and Minister of Finance Honourable Andrew A. Fahie (R1) has revealed that his administration is still reviewing the 7% tax on all monies leaving the Virgin Islands through money transfer services like Western Union and MoneyGram.

The tax dubbed the “Financing & Money Services (Amendment) Act 2020”, was passed on April 17, 2020, in the House of Assembly and subsequently assented to, has since reeled in millions on a yearly basis.

‘We are still looking into it’- Premier

During a press conference on January 28, 2022, the Premier was asked by reporter Zan Lewis about dropping the tax.

“A few months ago you said that the Government is looking into the 7 percent with the whole money transfer services. That sounds good. Where are you with that…you gonna drop it?” Mr Lewis asked.

Premier Fahie replied: “We are still looking into it and we will let you know soon.”

“Why you taking so long?” Mr Lewis persisted.

Honourable Fahie reiterated his assurance that the issue was being looked at.

 “We are definitely looking into it. That’s a very serious statement I am making,” Premier Fahie added.

Mixed reviews on 7% tax

Government had said the tax will be divided and distributed towards infrastructure, education, the seniors, fishing and agriculture, as well as the land bank and first-time homeowners’ initiative etc.

Since its introduction, residents of the territory have utilised other avenues to send remittance such as wire transfers.

There have been mixed reviews on the tax, with some saying too much money goes out of the economy while some believe that the tax percentage is too high and it is unfair that the Government decided to introduce the tax during the pandemic and is collecting taxes from monies that have already been taxed.

“I stand by this initiative, this is not a tax on the poor,” Premier Fahie said during the Seventh Sitting of the Second session of the Fourth House of Assembly (HoA) on April 17, 2020, citing that the territory should get a percentage of millions sent annually through money transfer services.

Opposition Members; however, shared a difference in opinion, with the majority saying the fee will cripple the poorest of the working class in the Territory, especially amidst the COVID-19 crisis.

16 Responses to “Hon Fahie: Gov’t ‘definitely looking into’ 7% remittance tax”

  • islander (07/02/2022, 12:01) Like (37) Dislike (7) Reply
    Make no damn sense in the first place. Robbing poor people who already paid taxes.
  • island man (07/02/2022, 12:22) Like (25) Dislike (9) Reply
    Government putting tax on little money people trying support there kids an family back in them island but yet bringing in over seas company to build structures in the bvi does the government put tax on the money the leaving with
  • Draconian (07/02/2022, 12:30) Like (32) Dislike (9) Reply
    It is a tax on the poor who cannot use wire transfers through the bank, or have foreign accounts that they can do direct deposits, or even not have their salaries enter the Territory except through a book entry. It is the most unchristian think that has been done to the poor.
  • Wicked man (07/02/2022, 12:50) Like (19) Dislike (5) Reply
    Any tax on other transfers? Banks do transfers out the country too? Is the playing field leveled? Has the Government EVALUATED who use the various money transfer services - Banks, WU, MG, etc.?

    Is this double dipping - 8% payroll tax on gross income and then 7% tax on net income in relation to funds transferred out??????
  • Jones (07/02/2022, 13:17) Like (10) Dislike (2) Reply
    Research other ways to send money overseas, its not that hard to do and costs way less anyway
    • TRY.... (07/02/2022, 15:23) Like (5) Dislike (1) Reply
      Try Cash App
    • Secret Bear (07/02/2022, 21:10) Like (1) Dislike (0) Reply
      You must have only lived in 1st world countries. In some poor countries western union is the THE only way to send money.
  • BS! (07/02/2022, 14:53) Like (3) Dislike (0) Reply
    #BitcoinFixesThis
  • Ungodly (07/02/2022, 15:53) Like (7) Dislike (0) Reply

    Agree it's the most unchristian thing implemented among some others.

  • Reviewing. Stop it.. (07/02/2022, 17:11) Like (0) Dislike (1) Reply
    I am charge 7% everytime i send money western Union and money gram.. I hope the Govt getting it...I know these slick greedy companies will find away to rob the Govt....Time to cut it out..
    • Review 2 (07/02/2022, 22:01) Like (0) Dislike (0) Reply
      Even though the government get it what are they doing with it look at our roads we have drive our new vehicles on little rain just fall an million holes in east east an the waste time them driving up an down in them red plates our hard earn tax paying money have fix them vehicles when they break down an need parts
  • :( (07/02/2022, 17:28) Like (1) Dislike (0) Reply
    one day, one day, coooonquer day!
  • Concerned (07/02/2022, 19:33) Like (3) Dislike (0) Reply
    It is a tax on the poor, plain and simple.....dem politricsksters are taking food off the table of dem who are struggling.....
  • Secret Bear (07/02/2022, 21:12) Like (0) Dislike (0) Reply
    Absolutely disgusting. A tax on the poorest and most disadvantaged among us, who don’t matter to government because they don’t have the right to vote here and probably never will. You’ll pay for this in the next life.
  • People, pleaseeee (07/02/2022, 22:44) Like (0) Dislike (0) Reply
    Stop using WESTERN UNION. FIND ANOTHER WAY TO SEND AND RECEIVE YOUR MONEY. GET CASH APP.
  • FBI (08/02/2022, 05:32) Like (0) Dislike (0) Reply
    Not the only government 'definitely looking into' this illegal 7% remittance tax on US currency.


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