TravelTalkOnline Forums Travel and Vacation Forums British Virgin Islands Tax Increases Won't Be Just Affecting Tourists

http://www.bviplatinum.com/news.php?articleId=1464224934

FYI

Reading the Platinum News is something special! I love this one: "and people will cut down on the amount they drink or worse, stop drinking period."

Yes indeed - if people stopped drinking things would definitely be terrible. <img src="http://www.traveltalkonline.com/forums/images/graemlins/Wink.gif" alt="" />

My trip in August will be my 6th but my first bareboat charter in BVI. Been waiting what seems like a lifetime for this trip. First it was the fishing and now this right before my trip!!! This may be my last. Back to vacationing in the Bahamas. I wonder if the Drinking Mans Guide will still be honored?

Looks like it's back to Cayman for us. Exit taxes, alcohol taxes, already added to the current 17% room taxes.... Where does it stop ??

So if we look hard for a silver lining, could this mean that the price of beer will drop? Understanding that it was taxed due to a larger volume/weight, would this mean that I don't have to pay $38/case for bud light at Riteway Pasea compared to the $18 I would pay at home? (I drink Carib when on charter, but I'm using an apples to apples comparison). Dare to dream and look for the positive.

"The new tax scheme is expected to increase government revenue to approximately $800,000 in 2016."

It will interesting to see how much revenue is actually generated from this and if any new revenues will be offset by losses due to tourists taking their business elsewhere. Unfortunately the locals will be the most impacted by this new tax.

Drink less, "smoke" more? May just have to legalize so they can tax the homegrown.

Did I just type that? I'm SO bad.

Nope

Caribbean Cellars General Manager Robert Knock said he expects the typical case of beer will increase by about $2 per case — beer is currently taxed at $1.10 per gallon, but will be taxed at the 25 percent rate starting June 1.


Sin Tax Increase

And we arrive Sunday and start our charter on Monday, May 30. Bummer! May drive me to drink!

Allen

Hotel tax raised from 7% to 10%...the rest is a "service charge" added by some..not us at CRC..

Yes. It's well known that you can't just keep increasing taxes and get more and more revenue.
Eventually revenues fall.

Some guy named Laffer first came up with this...

https://en.wikipedia.org/wiki/Laffer_curve

So will you still be allowed to bring rum from St. Thomas?

Seems to me if you charter from CYOA or another St. Thomas outfit. Your beverages would be "Ships Stores" <img src="http://www.traveltalkonline.com/forums/images/graemlins/Grin.gif" alt="" />

Yes, it will. Politicians always seem to ignore the real consequences of their actions. So they say to themselves...

"X gallons of some product are sold on the island every year. If we add a tax of 10 percent to that then we will take in 0.1 * X in additional revenues. Great!"

They completely ignore the fact that the additional tax will cause some people to change their behavior, and that as a result they are almost certain to increase their revenues by LESS than 0.1 * X. In fact, it is entirely possible that their 10% tax (just a number picked out of the air as an example) might be the straw that broke the camel's back and might, therefore, be enough to reduce sales by MORE than 10%, resulting in an actual REDUCTION in their total revenues!

Try to explain that to a politician or a bureaucrat, though, and you will get nothing but a blank stare 90% of the time.

Try explaining that the money you earn belongs to you not them and you will get the same blank stare! They will however be able to quote the first rule of being a politician with a smile! "Money is power and money comes from taxes therefore taxes are the cornerstone of power!"
G

Oh well, in spite of new taxes..... It is time to hit it! Heading to LAX and then on to Tortola and Conch Charters. Hope to meet up with a few of you at the usual spots. Cheers!

Allen