7% remittance tax to be reduced to 3.5%
Premier and Minister of Finance Dr Natalio Wheatley announced that his Government of National Unity has decided to slash the tax on remittances by 50 percent.
Speaking at a press conference on Friday, the Premier said: “In a recent meeting of Cabinet, we agreed to lower the tax on remittances from the present seven percent down to 3.5% to help our students and family abroad to cope. While we are collecting revenue, this lower percentage may encourage a greater volume of transactions, and this is in line with what was recommended before this initiative was introduced.”
Dr Wheatley said his government recognises that a large segment of the population utilises the remittance service to support their families in different regions of the world.
“These do not only include those persons who have families living abroad that they have an obligation to support, but Virgin Islanders who have children in schools in the United States, in the United Kingdom and elsewhere who send them some dollars periodically to make ends meet,” the Premier said.
In relation to when the changes will come into effect, Dr Wheatley said it was just a matter of getting the Cabinet decision gazetted.
“They are actually preparing the order … It will have to go to the House of Assembly just to be laid, subjected to a negative resolution in the House. Once it is gazetted, it goes into effect and that can happen anytime between now and next week,” he said on Friday.