Amid continued concern for the impacts that the unprecedented global conditions of the day has had on the buying power of Virgin Islanders, Premier Dr. the Honourable Natalio Wheatley announced an extension of all customs duty adjustments for an additional 3 months.
The announcement came during a press conference on Friday, July 22.
He said, “Simply put, the high prices that we are getting due to international forces are likely to continue and there are alot of uncertainties. What is very clear is that we need to find a way to help our people to cope with these developments. In this regard, the Cabinet earlier this week approved the extension of reduced import duties for a further 3 months following which we will review the situation again.”
“I want us to bear in mind that as long as inflation continues to rise and other factors continue to exist, considering our heavy reliance on imports, these external factors will likely lead to price increases”, he added.
According to the premier, during the last 3 month period, the reduction of customs duties on all items to 5 percent has cost the government upwards of 6 million in lost revenue
Dr. Wheatley justified the extension by citing a need to help local businesses and consumers cope with the rising cost of living globally, and the impact this has had on the BVI’s import-reliant economy.
He lamented that as a result of globalisation and globalised trade, the BVI, much like many other small states, is forced to cope with the effects of issues that it did not create and, in most cases, cannot interfere in.
“It is a widely established fact that the last few months have been particularly difficult for businesses and consumers as the cost of goods and services has been escalating. Throughout the world the pattern has been the same with few to no exceptions. As your government we are fully aware of how difficult this has been particularly for persons on fixed incomes”, Dr. Wheatley stated.
He added, “Let me be up front when I say that for many countries this is not an easy situation to deal with because in the era of globalisation and globalised trade problems that are experienced in one country can quite often emanate in another country thousands of miles away and there is little that a government in one country can do.”
The situation he says is plagued with uncertainty, as even when things begin to look up, the next global crisis appears to be lurking around the corner.
“We are all aware that COVID 19 wreaked havoc on economies across the world for quite some time after the pandemic started in March 2020… supply chains were affected by restrictions and health protocols. In some cases countries were curtailing and even banning exports on certain goods. Then as things began to improve in February 2022 Russia’s invasion of Ukraine created a new set of problems for everyone,” he explained.
Premier Wheatley lamented that while Virgin Islanders continue to show resilience in this challenging time, it is projected that the situation will get far worse before it gets better.
In any case, he added, the government of the BVI will continue to work within its power to cushion the blow.