The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

NEW and increased Customs fees will have a “more dramatic” impact on Family Island retail businesses, a top private sector executive said yesterday, adding that already-high freight costs coupled with  the  new 1 per cent Customs processing fee was like “putting the nail in the coffin twice”.

 Thomas Sands, president of the Eleuthera Chamber of Commerce, said Family Island retail businesses were “extremely concerned” over new fees import-related fees levied by the Government via Customs.

That, in addition to the trepidation businesses were feeling over the proposed Value Added Tax (VAT) regime, had left many companies feeling like they were being “slammed from all sides”, according to Mr Sands.

“The Family Islands as an economy has been in a depression for such a long time and does not see that much traffic on a regular basis,” he said.

“The majority of businesses, especially those that are Bahamian-owned, are retail businesses - about 90 per cent of business. Everyone imports, and little things like this have a dramatic impact on costs.

“Our freight costs would generally be higher than importing into Nassau. What that means is you’re paying  freight, 1 percent on that higher freight coming into the Family Islands, and it’s like you’re putting the nail in the coffin twice. We also have Business License fees. It’s a tough pill to swallow.”

Mr Sands added: “I think the big concern here is that information has to be made available. It has to be explained to people, first of all ahead of time, about these increases in taxes so that they truly understand and appreciate what’s going on.”

Mr Sands said businesses were also in a state of trepidation  over the proposed VAT legislation. “No one truly at this time has a full appreciation for this Value Added Tax and what are the implications to businesses.

“There is a lot of fear because businesses feel like they are getting slammed from all sides, and it’s in the Family Island environment where it is so seasonal, and there has been a slow economy for a long time. It  almost feels like a double whammy.”