Duty Increase: Over 1,400 Sign Petition
Over 1,400 people have signed an online petition protesting against the possibility of additional duty increases for importing items into Bermuda.
Government recently raised the duty rate at the airport from 25% to 35%, and following that Premier and Finance Minister Paula Cox said, “At the airport the rate is 35% however via other methods of import, the rates vary from 5% to 33.5%.
“Because of the inconsistent duty rates across methods of import, Government efforts to support local business are not as effective as intended. Therefore the Government will examine changes to duty rates for personal imports.”
Mailboxes Unlimited president Stephen Thomson has spoken out against additional duty increases, while the Bermuda Chamber of Commerce’s Retail Division has called for “an across the board, standardized duty rate of 25%.”
The petition’s text says, “Our issue is the damaging tax proposal of increasing duty for ALL imported personal items by as much as 500%, whether by Air Freight, Ocean Freight or Courier. This will affect all residents of Bermuda without exception.
“95% of all imported items come into Bermuda via Ocean Freight, Air Freight, Courier or the Post Office, which are billed at the normal lower duty rate. Only 5% comes through the Airport, which is at a 35% duty rate.
“If the intention is to ‘normalize’ or ‘harmonize’ duty rates, lower the airport back to the normal duty rates that all other methods are on.”
You can view the petition here.
Good day and peace to all.mmm 5% duty for all items.no duty for food.lower fuel tax. Also. Just a thought for the day.Peace Good Health and Happiness to ALLl
Why do you always post the same thing on this site?
@think its just what I fee at this time about taxes. No offence to you or anyone else. Still wish you peace also
This is going to happen. When P.C. and crew discuss any law that will take from the public, they’re going to pass it.
I just tried signing the petition, and the site would not allow me to submit my signiture
This issue is tiring. Why Stephen Thomson continues on his personal crusade against Buying Bermuda i will never know.
Why don’t people wait to see what may happen instead of protesting something that hasn’t happened, hasn’t been said, and may never happen.
This guy is just out for his own pockets and its a bit transparent.
Why wait to see it happen when it can be prevented from the start. It is not a personal issue for one person its about government dictating to people on how to spend their money. 500% on certain things is a bit much!!
I think you are forgetting that competition from abroad keeps local retail prices in check. If/when that competition is eliminated, what is to stop local retailers from jacking up their prices? We all know they love high prices. Maybe the premier should focus on making local retail more competitive instead of making the market less competitive.
If this goes through mark my words prices will go up as they will say that it coasts the average person x to bring it in yourself so I’ll bring it in and sell it to you for x+y= greed……………………..
LOL
You protest before it happens so it doesn’t happen. Remember Southlands SDO? Remember Tuckers SDO? Remember the hospital that Doc wanted to build on Botanical Gardens? If you don’t protest before, they have no reason to not hike up the duty. You have to see if before it happens, not wait around on your ass for it to happen and then complain.
you ask….Why Stephen Thomson continues on his personal crusade against Buying Bermuda i will never know…
what a stupid question.
Steve Thomson owns Mailboxes Unlimited which has a US address business. He gets paid every time a consuming client of his buys and imports a good in from the US. ie he makes nothing when you buy bermuda…
An example in regards to the increase of duty in order to force people to buy Bermuda. I priced a 3DS handheld game on Amazon which was $165 x 35% (duty to bring in if changed to 35%) is $222.75. Called two separate stores locally one said $299 and the other said $389. Now do the math, even with the 35% increase you will not force me to buy locally. I save $70 (local price $299 at first store) and save $166.25 (local price at second store). So this logic that by increasing duty you are forcing people to buy Bermuda is not logically and wrong. We as Bermudians should not be forced to by locally when prices are outrageous and you don’t have the same selection of items if you brought overseas. If stores and Government want people to buy Bermuda than prices have to be lowered, more selection of items (especially clothes) needs to be offered and staff at stores need to go through Customer Service training to be taught how to deal with customers in a professional manner. Now I cannot say all this without saying that some companies have wonderful staff who are willing to assist customers but most times I am disgusted by the service (this includes groceries stores as well). Stop trying to force Buy Bermuda by increasing duty across the board because now retailers are deseprate for business this is going to have the opposite effect.
Well said, but you forgot to include the shipping and freight charges.
it’s usually still cheaper. I bought two Ipods for Christmas off amazon, with duty and shipping it was still close to $200 cheaper than they were here together. I think it was around $180.
Remember if you bought it through the airport you get $100 duty free off that item.
$165 – 100 = $65 x .35 (duty) = 22.75
$165 + 22.75 (duty) = 187.75
It shouldnt be about buying Bermuda. We pay for food, clothes, gas, government taxes, everything else to live here.
Another supporting example:
A Reid Street retailer is selling a VGA to HDMI 1.3 converter for $155. I have found a more modern version online, VGA to HDMI 1.4, selling for $25. Direct shipping, no courier (FedEx, UPS, ..) or forwarder (Mailboxes, ZipX, …), cost $17. Duty at 22.25% adds on $5.60 ($8.75 at 35% duty). So all up I can land a more up to date converter for $48.
I can literally bring on 3 more up to date converters for LESS THAN the price of one old converter being sold on Reid Street. $48×3= $144 versus the $155 on Reid Street. Truth be told it would cost me less than that as adding an additional convert cost less than $17 ($11 if I remember correctly).
Why should I buy Bermuda?!?
These people are not serious! Why would anyone buy Bermuda with this gross price disparity? Would one of you retailers fill me in. I know you’re all reading these comments. Say something.
Ride
I couldn’t agree more with you. I purchased a toy that costs $30 in town and brought it in via Conspec for $17.00 and supported a local company… Amazing, isn’t it.
The government has to raise money due to the misspending over the past years. Instead of these taxes I rather they continue to fine bikers who overtake (left or right), any driver who drives aggressively, without keeping necessary distance to the vehicle in front, who races through roads with signs for children asking to slow down, running read lights, not stopping at a Stop sign, etc.
If, what the the conspiracy theory suggests is true and this proposed increase is not in fact a move by government to limit damage to local retail but rather to increase government revenue, then this attitude that it’s ‘still cheaper to buy overseas after the increase’ and to carry on regardless, theoretically feeds right into goverments objective, as the result is they are directly collecting more duty on every overseas purchase.
I personally believe that overseas purchases would vastly decrease, should the hike in duty go ahead, but also so would local spending on non-essentials items.
Correct +1 to this comment and it will further contract our economy leaving our recovery to be more slugish this is the time that stores need to slim profits or break even to survive, land lords who’ve paid for their space need to reduce rents so that they can continue to rent and then adjust when the economy does recover.
LOL
You got it – and government knows it.
Good day all, you know what also is sad where is the OBA on this issue?
Your doing a GREAT job Paula! Do your thing and please keep on not listening to the people… You go girl !
You’re an idiot for your statement. This idea is moronic as is the logic. The money will be leaving Bermuda either way as NOTHING is manufactured here. The ONLY reason Paula Cox is doing this is to collect more money from the public.
I’m pretty sure Cancer’s post was meant to be sarcastic.
That is the worst sarcasm I have ever seen then
@ Cancer, go on like this. Surely you want your country to continue to go downhill.
It’s People like you who will give Paula ya vote in a heart beat!!
The Government can take right from your pocket and you will still vote em in !
Such is life!!
Come on folks, where’s your team spirit? Your National Pride? This government needs your support. Everybody in government is busy running around trying to look busy because none of them want to lose their job. We need to keep our civil servants employed. Our civil servants are the backbone of our booming economy. If they lost their job they might have to find a job in the private sector that doesn’t automatically give them 63 days sick leave a year. Our government ministers are busy jetting from one Caribbean resort to the next and when they’re here they driving around in their fancy cars and are much too busy to worry about little things like parking fees. They’re still trying to fit in the time when everybody can meet to discuss the auditors findings.
We need to keep our government in the style to which they’ve become accustomed. What’s a little 500% increase in duty to achieve such noble aims? It’s time for all of us to chip in a little more to help Paula out.
A shirt costs the retailer $10 (all in – shipping,duty, stocked in their store), they sell them for $30 and sell 10 shirts. Would they sell twice as many if they sold for $25?
If sales are THAT bad, it’s probably worth a shot.
Less as they buy in bulk…….
LOL
Petition won’t make any difference. The duty hikes have nothing to do with assisting local retail, that is just a convenient cover for the fact that government are desperate for revenue. That being the case, it will be happening regardless. They can’t even make civil service payroll anymore.
I agree. This petition wont do a thing to stop P.C. and crew. I just hope that people stop importing and stop buying Bermuda for the time being to teach govment and retailers a lesson.
Well Well Well….. I am not surprised that this is going on. I do agree with some of the above comments….. However, I have a question…. Why is it that the government wants Bermudians to buy BDA when they dont? What about the foriegn workers? They dont buy BDA either. They make the money and send it home to their families. they shop at places like the barn or even salvation army and house sales, just so that they wont spend alot of money. Isn’t that like stealing from us as a country. Its now forcing local businesses to close down or even down size their employees. I dont think its fair that we as Bermudians have to ” buy BDA ” if we cant afford it or as most are not even working because businesses are closing and downsizing. if the government wants to keep local businesses flowing, then make it BETTER for us. Lower some cost on certsain items. It is beyond me that when i go grocery shopping im spending 300-400 per week for 3 or 4 bags when it used to be more like 100-150 dollars. How the hell do you expect us to eat and support are families with these ridiculous prices. And lets not go there about clothes and other things that are needed to survive…. Prices must be lowered…. Help Us Help You “BDA Government”. Think about it… You need US to vote for YOU… But YOU steal from us….. Get it figured ot!
Both the Barn and the Salvation Army would welcome your patronage.
@ Yella: Are you kidding? Foreign workers shop at the barn? Have you considered if they are low income workers? As for me, I’ve lived here for 10+ years and I am not sending my money home. How can you support your outrages claim? People like you make me sick. You claim things you cannot support and insult the guest workers who keep your country going. Shame on you. Where do you go shopping and I haven’t seen the clothes the MPs wear being sold at a store in Bermuda. Maybe I’m not out shopping too much, but that is because the variety and quality is terrible here.
Thank you Terry – Think about it, shud give my statement more thought and ‘think about it’
I don’t have to think about anything. Your post did not seem sarcastic in the least. You seem like you genuinely support P.C. and the PLP
This proposed increase will hurt the middle class family in bermuda. Clothing will go from 6% duty to 35% duty, a 500% increase!!!
This is what Premier Cox thinks about the Bermudian consumer:
“Many feel they have the right to spend their money as they choose.” – Premier Cox 18th January 2012.
I would suggest that Bermudian voters and consumers DO have a right to spend their money as they choose even though the Premier does not think so!
You can not ask the Governmenr to lower the prices on private business. Neither can you blame the government for the high prices at grocery stores. We need to channel our frustration elsewhere, like on the private business.
Imagine if you opened your own business and the government told you how much you should price your items. Don’t think it will go over well. Everyone is in business to make money, but I agree some business owners are greedy.
I say raise the duty even higher through the airport and for non commercial orders. Give places like mailboxes that import items for people a reduced rate so they it will be cheaper to go through places like that. And give retail stores even lower duty to force people to buy bermuda. How much does it help the island when people are taking the money they earned here and saving it and spending it in a totally different country. So your taking money out of our economy and placing it in another that doesn’t benefit our country whatsoever. No cash circulation around the island results in a bad economy. Bad economy results in job losses. You have to start small and I think that would be a step in the right direction. But I know the people that save up n go on “shopping trips” aren’t going to like this but that sucks for you
I would imagine that Bermuda’s cash flow benefits more from foreign workers than it suffers. Look at it this way, top earners are going to be IB, whose money comes from outside Bermuda and is spent on healthcare / payroll tax / high-end properties / cars / help / groceries / etc., [Incoming], whereas the lower end foreign earners who save / spend / send all of their money home (or whatever is left after tax / rent / Belco / groceries)[Outgoing], would be far outweighed by the former.
@ raise it where do you think the store owners spend their money???????????
LOL we don’t produce ANYTHING in this country.
I didn’t know there was a petition but just signed it!!! What’s the point in complaining about something if your not prepared to do something about it?!? Sign the petition and let our governemnt know that we will not pay for their mistakes ans we will not be penalized for practising our right to shop where-ever the heck we want to shop!!!
All of these government officials that are charging up expenses for trips, hotels and luxurious expenses, they need to curb their own spending and not put it back on the consumers. I will shop overseas if they charge 100% because the quality of merchandise in Bermuda sometimes is not worth it!
To add to your statement @pinklady the reason I shop abroad isn’t only due to the drastic price reduction on goods or the duty I’ll be charged when I come back home, it’s simple that Bermuda is VERY LIMITED on the amount and types of goods sold here!!! Time and time again I walk into one store and guaranteed to see it at 1 or more stores!!!
I shop abroad for the plethora of varieties that I just WON’T find here on the island!!!!!!!!!
Something that the government and retail don’t seem to understand. Let me fill you in on Economics 101. Raising ANY TAXES in a recession will cause further damage to the economy. This is a fact and retail should be really really concerned because I predict the rise in duty already, along with further rise through courier will make people spend less all around. As a matter of fact, retail should be worried about a consumer backlash against the Buy Bermuda campaign. I hear people talking and it ain’t pretty. On a last note to retailers, putting the loss of jobs in retail on the consumer was not a smart move, you never make the customer feel bad, guilty, etc. The damage is irreversible and you should be very worried.
A desperate ill thought through plan from a desperate Government with a long history of not being able to think through plans.
The Cox Regime are in deep financial trouble. Trouble that has little to do with a world recession & alot to do with their own bumbling amateur finances.
The once shining boom island of the Atlantic is sliding into the abyss. It did not have to happen. We were warned. First the Brown Regime, then the Cox Regime ignored the warnings. Called them scarmongerers.
Into the hole we have gone, costing us $200,000 per DAY just in interest, & it will get worse. Are you going to vote for the PLP again? If the answer is yes, how are you going to explain what you have done to your grandkids when Bermuda looks like Haiti.
It has been interesting to read the various posts in response to the petition.
In the first instance let’s be factual. The Minister of Finance has not said that the import duty for goods imported via the Post Office, Couriers etc will be raised to 35%. Therefore the comments about the duty being raised 500% and otherwise are not factual. They appear to be scaremongering.
The reality is that all governments must raise revenue. There are several options but the Bermuda model has consistently used import duty (paid at the point of importation) as a means to raise revenue. For reasons unknown to me, we have historically charged a higher rate if residents import the items directly at the airport than if the same goods are imported via a third party (post office, couriers etc).
The consequence of the differential rates is that individual importers are steered to third party importers based on ‘artificial interference’ in the free market process by government (past and present).
The PLP recently caused Bermuda to focus on the ‘artificial interference’ by increasing the import duty at the airport to 35%. These posts have apparently forgotten that the PLP decision was in response to retailer requests. The retailers had informed of possible layoffs (of Bermudians in large measure) due to losses in sales.
The subsequent comment by the Minister of Finance the the PLP will consider harmonizing the import duty at all points of entry has led to a hue and cry, spurred in no small part by the petition launched by Mail Boxes and other importers.
If we are practical and objective, the stated intent of the Minister of Finance is correct from a free market perspective. There should be a consistent duty rate for individual importers, regardless of the method of importation. Let the importers thereafter compete on service, convenience etc.
I note also the intermittent claim that government and the Chamber of Commerce have conspired to get all rates adjusted to a flat 25%. I think such a theory can be easily dismissed by looking at the history of the Chamber and its comments about most government initiatives.
Whilst I accept that consumers have the right to comment or protest about government actions, they should at least be consistent. Does anyone remember Mailboxes protesting about the duty INCREASE at the airport? If we cast our minds back, when the increase was announced, Mailboxes increased their advertising to encourage residents to import via Mailboxes. Mailboxes clearly understood the market advantage that they were given by government – so much for Buy Bermuda (more like Buy Mailboxes)!
The originally announced duty increase had the affect of artificially increasing sales for Mailboxes and others. Thus it is entirely expected for Mailboxes to protest the intended harmonization of import duties.
My summary comment? Lets be real and consistent. The practical solution is to have the same import duty for individuals regardless of the import point. The consistent rate might be 10%, 15%, 20% etc. The actual amount should be calculated based on the value of goods that are imported and the target amount of taxes that government wants to raise using this method.
The flat rate would eliminate the “artifical interfernce” that currently exists.
Exactly! And after all what is the problem with any CONSUMPTION based tax system government trying to get people to buy at home first! We all know you can’t get everything here but people, myself included, just go online in stead of checking locally first. I don’t think 25% across the board is unfair. There is always another choice: recycle, re-use or just go without!
The flat rate at the airport was put into place several years ago – previously goods bought into this country via airline passengers had the same rates applied as at the post office, etc. The flat rate was promoted as helping you to clear / pay Customs quicker. Easier to calculate 25% on total spending than having to calculate varies rates on the varies types of purchases.
put the duty back were it was the merchants already got abreak from govt. on pay roll tax .they also have their goods marked up 300% already they stil want to continue ripping people off and now the gov. is helping them to do it only gibbons company is giving something back to the consumer .online shopping showed people just how greedy and stupid bermuda merchants are oh did mention that gorhams is another company that is also thinking outside the box
THe bottomline is the hike in duty for goods imported by the average person does nothing to the “help” the retail industry – the funds go directly to Gov’t coffers. If Gov’t wants to “help” the retailers then a realistic approach would be the introduction of sales tax. We pay it when we travel and at time on on-line purchases. Food staples should be tax-exempt – rice, flour , milk, local produce, etc. This way everyone – not just the few – contribute to covering Gov’t excessive spending.
I run a business that provides service directly to local retail businesses. I am a service provider, not “retailer”. I import materials and equipment for my business via air freight or courier, depending on the size of eah shipment. If I have to pay 35% duty; it will be passed directly to my customers, who will then be penalised by the unintended consequence of legislation that was supposed to help them.