Beautiful Virgin Islands

Monday, Jun 30, 2025

Regressive 7% tax led residents to other ways of transferring $$

Regressive 7% tax led residents to other ways of transferring $$

Minister of Social Development Marlon Penn said the seven per cent tax on money services transfers has been regressive to the people of the territory and has only driven them to find different means to get money out of the Virgin Islands.
Premier Dr Natalio Wheatley had filed a motion in the House of Assembly today for the reduction of the seven per cent levy down to 3.5 per cent.

Penn described the levy as regressive while offering his contribution to the Premier’s motion, which was eventually passed.

Penn said that when the bill was first introduced back in 2020, there were estimates that some $70 million was leaving the territory through the money services facilities. Penn added that it has primarily been done by people who had children in university and those who came to the BVI to work and make it their home.

“[These] persons who must pay taxes across the board in other areas and to add an additional burden to those people, I felt then and now is something that should not have done, and we have to find more creative and innovative ways to generate revenue in this country,” Penn said.

The minister noted that while the figure for money services was $70 million, significantly more money was leaving the territory through the banking system.

“At the time of the debate, this number was close to $1.3 to $1.5 billion. Let’s call it $1.5 billion was leaving this territory every year through the bank and I know that number has increased because of the introduction of this [seven percent tax] we have sent persons to be more creative in the way they get money out of the territory, some are now using the banking system to do so, and they are using underground means which makes it difficult for us as a territory,” Penn said.

“That is the reality, I think the reality is we continue to be ostriches and ignore the reality among us and put our head in the sand and not speak honestly and forthright. I think that ostrich mentality and behaviour is one of the things that got us where we are today, and we cannot continue,” the Social Development Minister said.

He added that while he welcomed the reduction and that the Virgin Islands are moving in the right direction with this particular tax, the government must be careful not to impose regressive taxes on people who live here.

“Not just the people who come to live and work here and contribute and also our people are being affected and they are all our people, and these taxes tend to be regressive,” Penn said.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
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
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Macron and Merz: Europe must arm itself in an unstable world
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
×