The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Marina Operators of the Bahamas (MOB) interim chief yesterday warned that a 15 per cent Value Added Tax (VAT) could cost this nation hundreds of millions of dollars, effectively “driving business out of the country”.

“I don’t think imposing a VAT tax on the marina business makes any sense,” said Peter Maury. “If marinas increase their costs by 15 per cent it’s going to drive business out of the country.

“We sell water, power and fuel. The boaters come here and they pay dockage fees, they pay for fuel, they buy groceries and other consumables. Fuel is the highest revenue generator in this country. They already pump a lot of money into the economy.”

Mr Maury, interim head of the 61-member organisation and manager of the Atlantis marina, added: “If we are not going to welcome these types of persons, we are shooting ourselves in the foot.

“Obviously, no marina operator in this country is going to eat that 15 per cent. It is ultimately going to be passed on to the consumer. It may cause them to lose business but they can’t eat that 15 per cent.

“Even if you charge the 15 per cent off the few boats that would come, that would be nothing compared to what we would have had before.

“Boaters bring hundreds of millions of dollars into the country. Food stores, liquor stores, even the guys selling fresh fish, they all benefit. What is going to happen is the boats are going to go to Turks and Caicos, Jamaica, the Dominican Republic or whereever they want.”

Mr Maury said that while the industry had seen a slight increase in business for 2013 to-date, tax increases would effectively drive business away.

“We’ve seen a little bit of an uptick in business because I believe several boats haven’t gone to the Mediterranean, as they are charging 20 per cent taxes there,” he told Tribune Business.

“We’ve heard those complaints and that’s why they’re trending to the Bahamas more. I understand that we have to raise the revenue, but in some sectors it’s a mistake. We want to get more business to the Bahamas, to get people to come here and spend money.”

Mr Maury said the Marina Operators of the Bahamas has asked to meet with the Government on VAT, which will also be raised as an issue at its annual general meeting (AGM) at the end of June.

The Government plans to implement VAT on July 1, 2014, at a rate of 15 per cent, with the hotel industry to be subject to a lower 10 per cent rate.

The Government plans to eliminate the 10 per cent hotel occupancy tax rate, replacing it with VAT at the same rate. A 10 per cent VAT rate will also be applied to all hotel food and beverage sales.

The Government has also announced that effective July 1 this year, the sale or lease of marina slips is now subject to Stamp Tax.