Wade Smith: “Between $2.7 million to $3 million would be lost” by new Customs & Duties Bill!
This was disclosed by Wade Smith, the Commissioner of Customs (COC) during his presentation before the 2012 Standing Finance Committee (SFC) meeting. The member for the first district Honourable Andrew A. Fahie asked the COC “what amount of annual revenue would be lost by the Customs Department undertaking the initiative?”
The COC stated before the SFC that “it was estimated that between $2.7 million to $3 million would be lost annually.”
New Bill retroactive to February 1, 2012, refunds will be forthcoming
The new Bill that was announced by Minister for Finance earlier this year and passed in the House of Assembly on February 14, 2012, will be retroactive to February, 1, 2012, according to the Financial Secretary (FS).
In responding to a question from Honourable Fahie, the FS told the SFC that the “COC would not grant refunds immediately; however, the policy was in effect as of 1st February, 2012 and , as such, the necessary administrative steps would be taken…”Since this policy was to be retroactive to February 1, 2012, Honourable Fahie enquired whether it would be reflected in the legislation. The FS stated that, “it would be taken care of legislatively”.
Furthermore, Mr. Fahie enquired whether customers who already paid during that period would be issued a refund from the Treasury Department. The FS stated that the COC was responsible with dealing with the matter administratively, once “matters were submitted for refund”.
To further clarify the matter before the SFC, the same question was put to Mr Smith. The COC stated that the documents would be prepared by the Customs Department and forward to the Ministry of Finance who would thereafter forward the documents to Treasury Department which would be responsible for issuing the cheques for the refund. He stated that Customs would not directly refund customers.
Criticism to BillThe Customs Management and Duties Amendment Act 2012, was hastily passed on February 14, 2012 in the House of Assembly. The bill was amended to make way for duties to be relieved from the cost of Freight and Insurance of imports by businesses with the hope that these savings will be passed on to customers.
The savings, for consumers, however, is not expected to be dramatic, if any at all as the concern is whether the merchants would pass it on to the consumers.
According to Tortola resident Kishmet Daniels, she also doesn’t believe the savings would be passed on and questioned what difference would it make in saving a few pennies. She also said it would still be much cheaper to shop in St. Thomas as against Tortola where she says prices are outrageous.
Furthermore, one talk show host was asked whether it would be prudent for Governor Boyd McCleary to sign the recently passed Customs and Duties Bill since there was a visit expected earlier this year from the UK to review the Virgin Islands finances and the team may have some concerns on it.
Douglas Wheatley, speaking on the radio programme ‘Speak Out BVI’ on February 21, 2012 said concerns are still rife as to whether savings will be passed on to the consumers because the legislation itself did not make an enforcement provision to ensure that the savings were passed on by the merchants and this change does not seem to be for the direct benefit for the consumers.
He also said speculations are common on the bill because persons were not privy to it before it was passed.
“The difficulty there is that when a bill comes to the House it has its first reading and nothing else happens after the first reading but then it is gazetted and it becomes a public document and every Tom, Dick and Harry can have access to it, read it and then make your comments as you see fit to your representatives but this wasn’t done so some of us have not seen this bill yet…”
Second District representative Honourable J. Alvin Christopher had in fact expressed this concern in the House and had even objected to a second reading of the said bill.
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