The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Grand Bahama Port Authority (GBPA) licensees are being “double and triple taxed” due to the Budget’s new and increased fees, and are warning the Government it is “attacking the goose that laid the eggs”.

A Freeport-based automotive industry executive, speaking to Tribune Business on condition of anonymity, said the sector was having to cope with the Government’s new ‘Environmental Levy’ at the same time as Sanitation Services has increased its disposal fees 100 per cent.

And Freeport’s unique ‘over-the-counter bonded goods’ system has created further challenges with respect to the new 1 per cent Customs administrative processing fee.

The automotive executive said the problems here stemmed from ‘post-paid’ duty payments on goods that were initially brought in bonded, or tariff free, but were subsequently sold to individuals and households - not other GBPA licensees.

The duty payable on such sales is remitted to Customs, along with the supporting paperwork, by the 15th of every following month. And GBPA licensees doing this have found themselves subjected to the new 1 per cent processing fee on these entries, as well as at the point of import, effectively a ‘double dose’ of taxation.

“We’re paying 1 per cent as the merchandise is landing on the island, and when we go to pay duty at the end of the month for post-paid sales, another 1 per cent is being levied,” the automotive executive said.

“We’re getting double taxed in Freeport. We’re calling the Department of Consumer Affairs and asking them how we deal with this tax: Do we make it part of the mark-up and pass it on to the consumer, or make it a one-line item? They don’t have any answer to give us.”

With many GBPA licensees importing full container loads to minimise freight accrual, many are seeing their 1 per cent administrative fee upon landing hit the maximum $500 - a 5,000 per cent increase from the flat $10 Stamp.

Meanwhile, the automotive executive said the impact from the Government’s Environmental Levy had been equally as devastating when added to Sanitation Services’ fee increases.

“What are we supposed to be doing with this?” he asked. “This new tax for the disposal of certain goods. Grand Bahama is unique where we have Sanitation Services; we have to pay them for the disposal of goods.”

The executive said Sanitation Services had increased its per load tyre disposal fee from $200 to $400, a 100 per cent rise, from July 1 - the very same day that the Government implemented its ‘Environmental Levy’ nationwide.

With the Government levy placing a $5 disposal fee on an ordinary tyre, and $15 and $25 fees for single axle and double axle tyres, respectively, the automotive executive said: “In Freeport, you might say we’re being triple taxed for tyres, given that we’re also paying when it comes in.

“The disposal fees in Grand Bahama went up 100 per cent as of July 1. We got a 100 per cent increase from Sanitation Services, got hit by the Government’s new disposal fee, got hit with 1 per cent of the entry coming in, and when the merchandise is sold we’re getting hit with another 1 per cent fee.”

The automotive industry executive added: “Where are we going with it? Does government understand how the Hawksbill Creek Agreement works, and did they think about how this is going to affect the consumer?

“The consumer right now is having a hard time paying for merchandise; food, hardware, building materials and appliances are all on the way up.

“My question is: With government doing these new landing and departure taxes for private planes, they’re attacking the goose that lays the eggs, and are now strangling the goose and it is going to lay no eggs.”

Noting that the auto industry, and associated sectors such as bankers, insurance companies, brokers and the Government, were no longer making money from car sales, the executive questioned why taxes on the sector were being increased.

“Ask them the reason and they say we’re following other Caribbean countries,” they added. “What’s the sense of doing this and making no money? It’s really crazy.

“We’re in business today, we’re not in business two weeks from now. We’ve got merchandise on the dock waiting to be cleared, but no one is hearing our cries. We don’t know which way to turn.”