No new duty on import policy as yet despite Premier’s annoucement
This is the case since the new policy would have to be put before the House of Assembly (HOA) for approval.
This was confirmed by Director of Communications in the Premier’s Office Arliene T. Penn, who said usually such policy would require an amendment to the Customs Management & Duties Act.
And according to the Department of Customs, the same policy of Cost, Insurance and Freight remains until the Legislation instructs otherwise.
It is not clear how soon the bill would be taken to the HOA but this is expected to be done in haste given that the Premier had declared that the policy was to be effective February 1, 2012, the same day he made the announcement.
He had added that it was one of the measures implemented by Government to help address the high cost 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 had also 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.
The Territory’s leader said he 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.”
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