Residents utilising remittance services have been given an ease by the Government of National Unity after the Cabinet decided to cut the previous stipulated 7 percent tax by half.
This was announced by the Premier and Minister of Finance Dr. the Honourable Natalio Wheatley during a recent press conference.
He said by reducing the tax down to 3.5 percent, he hopes the incentive results in more transactions occurring.
“The Government of National Unity also recognises that a large segment of our population utilise remittance services. These do not just include those persons who have families living abroad that they have an obligation to support, but Virgin Islanders who have children in school in the United States, in the United Kingdom and elsewhere, who send them some dollars periodically to help them make ends meet,” Premier Wheatley stated.
He added, “In a recent meeting of Cabinet, we agreed to lower the tax on remittances from the present 7 percent down to 3.5 percent to help our students and families abroad to cope. While we are collecting less 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.”
Premier Wheatley said the measure is just one of the many initiatives by his government to cushion the rising cost of living, stemming from the Russia-Ukraine war.
During the aforementioned press conference, the premier also announced the extension of all customs duty adjustments for an additional 3 months.