Thursday, June 10, 2004

USVI: We're picking your pocket for your own good

ST. THOMAS - Anyone shipping a car to the Virgin Islands will have to continue paying a 4 percent tax on the vehicle.

Although the Senate passed a bill that would have exempted cars brought into the territory for personal use from the 4 percent tax on imported items worth more than $1,000, Gov. Charles Turnbull vetoed the bill.

Turnbull said in his veto message that the car exemption "would take away revenues from the General Fund and seriously impact this government's ability to provide vitally needed services for residents of the territory."

The government has estimated that the tax, which was implemented last year, will generate $4 million annually.

The tax has caused sticker shock among many who have shipped cars to the territory without having anticipated that they would have to pay an additional 4 percent of their car's value on top of shipping fees.

A 2004 Suzuki Grand Vitara with a manufacturer's suggested retail price of $18,699 stateside costs an additional $747.96 with the tax.

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