Beautiful Virgin Islands

Tuesday, Jun 24, 2025

Money transfer tax too high and bad for business! Residents sending less frequently in smaller amounts

Money transfer tax too high and bad for business! Residents sending less frequently in smaller amounts

By Esther Durand, BVI News Staff Since the controversial Financing & Money Services (Amendment) Act became law on May 4, commercial activity in that sector has slowed significantly.

The legislative amendment mandates that a seven percent tax be taken from all monies leaving the BVI through money transfer agencies.

Meslyn Allan, who is the Marketing & Network Development Manager for GraceKennedy Money Services Ltd - the exclusive agent of Western Union in the BVI - told our news centre that persons are still sending “but are doing so less often and in smaller amounts”.

“Feedback from our Western Union customers suggest that they are not opposed to the tax. However, they believed the levy is too high and makes it very difficult for them to continue to transact business in the way that they are accustomed to,” Allan told BVI News in a recent interview.


Business was good before tax

She said data also indicated that business was ‘growing moderately’ before the coronavirus, “however, it has become further challenged by the implementation of the transaction levy”.

“Since it’s implementation, the business has and continues to see a significant reduction in transaction volumes when compared to the prior year,” Allan added.


Residents seeking out alternative means

An operating agent for another local money transfer agency, who spoke on the condition of anonymity, said traffic at her outlet has ‘definitely decreased’.

“People are finding other means, and I guess there is an underground market as well that is being established. They are using apps or banks because they just find the seven percent too expensive. So it is having a negative effect,” she told BVI News.

The money transfer agent said people regularly used the service before the introduction of the levy and “didn’t have a problem”.

“Business was brisk, very brisk. But it has dropped by at least a quarter, I would say if not more,” she stated.

She said her biggest fear is that persons will stop using the service altogether.

BVI News also reached out to other agents in the industry, however, they declined to comment out fear of being victimized.


Premier pleased with tax

Back in mid-June, less than two months after the tax amendment came into effect, Premier and Minister of Finance Andrew Fahie said government was seeing huge returns from the levy.

“The slowest week thus far was the second week in May, around there, and that week was $843,670.03. If you just take seven per cent out of that week, you have $59,056.90. With about 30 more weeks to go for that seven percent, you would calculate it to be $1,771,707.06,” he said while speaking in the House of Assembly on June 16.


Tax to benefit five sectors/programmes

Every dollar collected from the seven percent tax will be distributed among five local sectors and initiatives. Each of those areas will get 20 percent of the overall taxes collected.

These areas include programmes benefitting senior citizens, educational programmes, landbank and first-time homeowners, the fisheries sector, and the agriculture sector.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
×