Beautiful Virgin Islands

Thursday, Jul 03, 2025

Fewer expats, less remittance, less taxes for government

Fewer expats, less remittance, less taxes for government

As the government struggles to keep its COVID-battered income streams flowing, the BVI’s remittance sector, which was earning big bucks earlier this year, is likely to take a battering from the COVID-19 pandemic.
The latest estimates published in the World Bank’s Migration & Development Brief show that global remittances will decline by 14 percent by 2021 compared to the pre-COVID-19 levels in 2019.

According to the World Bank, the foremost factors driving the decline in remittances include weak economic growth and employment levels in migrant-hosting countries.

This prediction is not in the BVI’s favour — a major migrant-hosting territory where expats make up some 70 percent of its workforce.

So far, many expats have returned to their home countries because businesses in the BVI have been struggling to remain profitable amid the COVID-19 pandemic.

These factors will have a corresponding negative impact on the BVI’s remittance sector which depends on migrants who send money earned in the BVI back to their home countries.

Remittance had started to earn major profits this year when the government imposed a seven percent tax on all monies leaving the BVI through money transfer agencies.

At that time, Premier Andrew Fahie confirmed that the government was projected to collect more than $1.7 million from local money transfers by the end of this year.

But according to the World Bank statistics, this could change drastically.

The World Bank says remittance flows to low- and middle-income countries are projected to fall by seven percent to $508 billion in 2020, followed by a further decline of 7.5 percent to $470 billion in 2021.

“Migrants are suffering greater health risks and unemployment during this crisis,” said Dilip Ratha, lead author of the World Bank’s Migration and Development Brief.

“The underlying fundamentals driving remittances are weak and this is not the time to take our eyes off the downside risks to the remittance lifelines,” Ratha said.

Recently, Premier Fahie revealed that the territory was able to avoid a $57 million budget deficit that was initially projected for due to the COVID-19 pandemic.

He said based on his government’s handling of the territory’s income streams, the BVI is now positioned to “significantly and almost totally” cut down the projected deficit.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
×