Chamber Division Appeals To Premier
In the run-up to the 2012 Bermuda Budget, the Chamber of Commerce Shipping Division has called on Premier and Finance Minister Paula Cox to abandon any proposed duty rate increases on imported personal items currently being discussed.
Steve Thomson, spokesman for the Shipping Division said, “It is counter-productive to raise taxes on citizens in times of hardship and recession. Bermudians are suffering now with reduced hours, layoffs and less money in general. To increase taxes on the people at this time will injure businesses leading to layoffs and cost Bermudians significantly more money via duty.”
“Tax increases that focus on personal importation, while seeking to address one problem will fail while simultaneously create another problem.”
Mr. Thomson has been an outspoken critic of any increase in duty hikes in his private role as president of Mailboxes, Unlimited, which offers shipping, courier, office, mailing and private mailbox needs.
Speaking on behalf of the Chamber’s Shipping Division, he continued: “The supply chain for small businesses: Many individuals and small businesses share consolidated containers to imports their items. These small businesses will be inadvertently affected as these shipments to Bermuda will now be less regular as personal shipments will diminish as duty rates increase. This will negatively affect their supply chain.
“It should be noted that small businesses have not been part of the discussions to date which have relied almost soley on a select few larger businesses who clearly have the most to gain.
“By definition, the cost of inventory and shipping would increase for these businesses and further compound the ongoing recession forcing even more small businesses to close and escalating inflation.”
Mr. Thomson further added that increasing duty so significantly will “cause severe negative effects on Bermuda and our economy.
- “Increasing taxes in times of recession decreases business activity and leads to reduced employment.
- Increasing taxes hurts individuals who already are suffering in Bermuda.
- Tax increases on imported personal items will significantly reduce competition for specific businesses allowing for increased prices, which is inflationary.
- Choice is critical to people in Bermuda. Many items simply are not available locally. Penalizing residents via increased duty on items that are unavailable is unreasonable.
- There will be less discretionary income in people’s pockets as items will cost more both to import and in stores leading to decreased spending in other areas
- i.e. restaurants, supermarkets, etc.”
Mr. Thomson concluded, “We suggest that the Government, in their drive to help retailers, look at reducing the duty charged to retailers on their imported goods and maintain the current duty structure on all imported goods. This will have the same effect of assisting the retailers, but will not punish the residents of Bermuda or injure the shipping, courier and freight companies.”
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PLP are addicted to money, power and their elite. They have bankrupted todays generation, now they want to bankrupt tomorrows.
Yup. have you noticed how sad Bermudians look now ? today I went to various locations to pay some bills…and have you ever seen the look in a dogs eyes that has been mistreated ? that is what I saw today in our people.
yada yada..maybe mr thopson should speak to the retail members of the chamber..they are the ones pushing for the 35%
Can someone please remind me how the recent payroll tax exemption for retailers has helped the consumer. What exactly did this government think it would achieve apart from lining the pockets of the owners.
Don’t forget many other businesses are hurting and they don’t get any help from the Government.
I tracked the prices of several items before and after this was implemented and the prices stayed the same. I ended up buying my presents on Amazon and saved a bundle even after paying shipping and duty at 25%.
There was no chance that reduced payroll tax was going to lead to lower ticket prices. Just as there is no way a Government can force people to spend their consumer dollars in a particular manner without backlash.
Tax increases on personal imports only serve to tighten the already tight noose around the poor mans neck one more turn. How much more can we take? Time for change
hmm who owns the stores downtown mate? who really has the noose round your neck?
his bredrens own dem stores, and de buildings
hence his notable silence
You’re so off-topic it’s unbelievable.
The government wants to increase taxes while the economy is doing extremely badly. That will suck more money out of the economy. It will not help shops, as people will have less to spend. It will not jobs. It will not help anyone, except for Paula Cox, who has no ideas at all about how to balance the forthcoming budget, other than tax increases, more borrowing, and lying schemes that involve putting pension contributions off to some future date.
We are completely screwed. This government is in way over its head. And you want taxes increased? Good God man.
Good point d-reader.
But also remember who/whom frequents them.
Ya Clint.. ask ya bredrens to lower rents of de stores to cut dur overhead expenses. Dose buildins have been aroun for years don, dey mus have paid dem off.
How cum de retailers aink complanin to de landlords… dey prolly bredrens too inna
So much financial damage has been done under Brown/Cog and now Cog/Cog we shouldn’t look for any favors. The Cog needs as much money she can get from we the people in her attempts to put the county back on an even footings. How long will we the people continue to suffer and have to repay the debt for the wrongdoings of this PLP government? We need to be bold a make a move – a big move – a change in government. Vote OBA in June.
I dunno bout OBA don, I still dunno der platform and I doan hur much solutions or ideas comin from em… Dey remind me of a nagging wife, complains all de time but doan offer nuffin positive.
I only hurd a few ideas, but very few.. plus dey doan seem like dey for de middle class, jus about business people.
Dey sey dey will create jobs, but wha kinda jobs? Is it gonna be jobs dat give wages we can live on, or sweatshop jobs? Dere’s still jobs out dur, some people got false pride an doan wanna do em… cant blame govt or employers for dat.
OBA aink showin me nuffin yet, Im still waitin cuzin…
leave ya PLP jargon out of dis and I wanna see what the OBA can do for me… I wanna her dat, without talkin bout the PLP. Hur me don?
I agree with you cancer,I never thought Paula Cox, would have allowed Brown to get away with his out of control spending, can you imagine the former premier who had two or three body guards that travelled with him all over the world !!!!and Paula allowed this to happen…..and now she wants us to help her by doing more with less !!!!!!!!!!!!!!!!!!! does our Premier have body guards ? and do they travel with her every time she goes abroad ?
I think Bermuda is ready for a change in June .
“This will have the same effect of assisting the retailers, but will not …injure the shipping, courier and freight companies.” says Steve Thomson who owns Mailboxes Unlimited, and regularly ships in the goods for Bermudians shopping online via a US address provided by Mailboxes!
How can anybody take this / his campaign seriously? This is all about his pockets – his business will suffer if duty rates are increased! Get an objective spokesperson and maybe someone will listen to you.
The way I see it – those who are in a position to shop overseas are well positioned to pay a higher import duty. They obviously have the disposable income and should be subject to a premium for not supporting the local businesses. You talk about losing jobs? How about the small retail shop clerk that now has to rely on government for support after losing her job thanks to those who are shopping online? The increased duty rates will indirectly help her!
Classic case of the message getting lost thanks to its messenger!
@The 411,
Not that I agree with you, but lets expand on your statement and others who want suggestions.
1> Home/House owners who collect rent should be paying payroll tax on all that free income. Just like any other small business owner.
2> Anyone who owns more than one house should pay more in Land Tax.
3> Anyone who has a car valued at $70,000 or more at the time of purchase, should have a “if you can buy the car, so you can pay more in license fees” tax.
Care to add a few more?
@work what you are talking about is called income tax….
MP’s should have been pushing for this for years now but because so many of them stand to lose real $ from it, they have not & will not push for it to happen.
Income tax is the quickest way to sort out a lot of the nonsense and finally bring a balance to the island.
But sadly the MP’s only pull from the drowning workers making minimal wages…
honestly, who buys from local stores anymore? i sure don’t. i refuse to support all these incompetent store workers who avoid the clients like the plague and do not have any knowledge of the products.
i do buy Wadson farm.
anybody can tell me of a store clerk who is dedicated to his/her job and is helpful? i will be more than happy to give it a try.
P-Tec I have had wonderful experiences duwn dur. Nuff places I gone and peoples were cool. Ya proy the problem bredrin.
Few bad apples shuldnt spoil de barrel