Suspend Environmental Tax For Visitors--Ferry Operator

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(PLTM) - One local ferry operator is calling on the government to temporarily relax the environmental and tourism levy paid by visitors, to help the tourism and transport industries revive from the effects of Hurricanes Irma and Maria.

At the start of September this year, all visitors to the Territory are required to pay $10.00 environmental levy, which is collected on arrival at the ports of entry.

The new tax was approved in the House of Assembly on April 18, with the passage of the Environmental Protection and Tourism Improvement Fund Act, 2017. Only cruise ship passengers are exempted from the tax.

Managing Director of Smith's Ferry, Marjorie Smith said a relaxation of this tax could benefit the economy, adding that passengers and ferry companies already see it as a burden.

"Before the storms, the entry tax contributed to the reduction of our profit margin because we could never raise our fares, so fuel is going up and parts for our boats are going up, and we make a minimal profit margin of 5 or 6 percent a year," Smith lamented to BVI Platinum News.

She continued, "If we cannot get a greater profit, we cannot see any growth, we cannot continue to provide better service and we cannot continue to employ people."

Smith, whose company suffered over $2 million in losses from Hurricane Irma, said she is not suggesting a relaxation of the departure tax, because people are already used to paying it. However, she said the entry tax is new and can be relaxed since people were already against it.

"Remember the passengers pay $50 to $60 dollars for a round trip, they pay $10 to depart St. Thomas, another $10 to enter Tortola, then $20 dollars to depart the country. How many tours do you think will continue to come here? By the time someone pays $100 round trip, how can I raise my fare?" Smith questioned.

The government had stated that the environmental and tourism levy will be used to facilitate environmental protection and improvement, climate change, and the maintenance and development of tourist sites and other tourism related activities.

In the past, the National Democratic Party (NDP) administration was cautioned against increasing taxes and fees simultaneously in the tourism industry.

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