The customs duties on all imports in the British Virgin Islands that are above five percent will be reduced for the next three months as of April 15 says Premier Andrew Fahie.
Premier Andrew Fahie also said that the initiative is a move by his Virgin Islands Party government to ease the financial burden of the people in this British Overseas territory who are still grappling with a pandemic and more recently, the Russia Ukraine conflict.
He also said that goods and services that currently have a duty of five percent or less will remain the same.
“This will apply across the board, both to businesses and private citizens. To give an example, if a person was to import a motor vehicle costing US$30,000 including shipping where the import duty would have been 20 percent or $6,000, under this initiative, the duty will be capped at 5 percent and they would only pay the reduced duty of only $1,500 during the period of this stimulus initiative.”
“Similarly, when it comes to importing food, clothing, construction material, marine supplies and equipment, vehicle parts, products for senior citizens and all other items where the regular duty is over five percent, persons and businesses will pay five percent and this will lower the overall cost of importing the item,” said Fahie, who is also Finance Minister.
He also announced the government will be implementing measures to cushion the impact of rising fuel costs on the people of the territory.
“The import duty on diesel will be reduced by 50 per cent from 22 cents per imperial gallon to about 11 cents per imperial gallon. The import duty on gasoline will also be reduced by 50 per cent from 32 cents per imperial gallon to 16 cents per imperial gallon.”
“This should give our people some relief at the gas pumps and in their pockets. So, the savings for all persons in all sectors have been significant whether it is in the marine sector, the automotive sector, the construction sector, the tourism industry, hardware and home goods; all sectors across the board.”
He noted this stimulus initiative will help residents with the economic struggle incurred by events out of their control. Fahie added it will also increase the purchasing power of businesses and individuals allowing them to stretch their dollar a bit more and also maintain their standard of living while keeping the economy stimulated.
“To ensure that the savings and benefits are passed on to the consumers, your government will be conducting monitoring exercises where businesses are concerned, through the trade department with its consumer protection function and in collaboration with our various other government agencies. I want to take this opportunity to remind members of the public that this will be just one initiative your government has put in place to ease the financial burden of our people,” the Premier said.
