A Myett’s Chill Zone bartender makes a rum punch yesterday at Tortola Pier Park. Last week, government revoked a short-lived hike on alcohol and tobacco duty that was implemented on June 1. Photo: KEN SILVA

Less than three months after implementing a major tax hike on alcohol and tobacco, government has revoked the levy, according to an order filed by acting Premier Dr. Kedrick Pickering in last Thursday’s Gazette.

A Myett’s Chill Zone bartender makes a rum punch yesterday at Tortola Pier Park. Last week, government revoked a short-lived hike on alcohol and tobacco duty that was implemented on June 1. Photo: KEN SILVA
The increase — which on June 1 replaced the former quantity-based system with a new value-based system — was part of government’s initiative to generate an additional $19.3 million in tax revenue this year.

According to the Medium Term Fiscal Plan 2016-2018, the increase was expected to generate $800,000 this year and more than $2.4 million in 2018.

It’s not clear why the increase was revoked: Customs Commissioner Wade Smith referred this reporter to Financial Secretary Neil Smith, who didn’t immediately respond to the Beacon’s inquiry this week.

However, at the time the tax hike was published in the Gazette in May, alcohol importers noted their concerns that the change would drastically raise the tax rates for many alcohol and tobacco products.

See the Aug. 28, 2016 edition for full coverage. 

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