The BVI Chamber of Commerce (BVICOC) has said the government stand to gain more revenue while businesses and consumers suffer with the end of temporary relief measures. Photo: BVICOC

Sinclair H. Flemming Jr., Chairman of the BVICOC explained that when the value upon which a percentage-based Government charge is calculated rises, Government can collect more. Photo: BVICOC

The temporary relief measures implemented from May 1 to August 31, 2026, saw duty calculations shift from cost, insurance and freight, or CIF, to free on-board or freight on-board (FOB) value. 

“The Chamber believes there is a critical point the public must understand. The higher the value upon which a percentage-based tax or fee is assessed, the more Government stands to collect from that charge,” the BVICOC said in an August 31, 2026, press release. 

The Chamber explained that during an international crisis, businesses may import the same container, the same quantity and even the same products, but if the underlying taxable value increases, a percentage-based Government charge can generate more revenue.

Ultimately, it means that while businesses and consumers struggle with international inflation, the government does not necessarily suffer the same financial effect from percentage-based import charges. BVICOC explained further that where the taxable value rises significantly, the Government can stand to collect substantially more from those charges.

Gov’t can collect more- Sinclair H. Flemming Jr

Sinclair H. Flemming Jr., Chairman of the BVICOC, said, “When our product costs rise, we pay more. When shipping rises, we pay more. When insurance rises, we pay more. But when the value upon which a percentage-based Government charge is calculated rises, Government can collect more.”

He added that this is the “fundamental imbalance” the Chamber has been trying to address. 

“Government should not receive an inflationary windfall simply because businesses are paying substantially more to bring the exact same goods into the Territory.”

The Chamber said businesses cannot absorb these increases indefinitely, and they eventually become part of the selling price. This means the final person carrying the accumulated cost is the consumer. 

BVICOC proposed what it termed “practical compromises” to the government before the expiration of the temporary relief measures. 

Premier and Minister of Finance, Dr the Hon Natalio D. Wheatley (R7) and Junior Minister for Financial Services, Trade, Economic Development, and Digital Transformation, Hon Lorna G. Smith, OBE (AL), are scheduled to meet with businesses on Friday, September 4, 2026.

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