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Thomson criticises Chamber call for 25% duty on all personal imports

Steve Thompson

Mailboxes Unlimited president Steve Thomson yesterday criticised the Bermuda Chamber of Commerce’s Retail Division over its call for a standardised 25 percent rate of duty on personal goods imported to the Island.Mr. Thomson said he was upset he was not consulted about the Retail Division’s position, yet had been a member of the Retail Division for the last two decades.Furthermore, he said under the Chamber’s “damaging” proposal, the construction industry would also suffer, with duty on building supplies imported by homeowners hiked from 10 percent to 25 percent.“This is a tax against the people of Bermuda and our guest workers, and one more reason to find that Bermuda is pricing itself out of the market,” he said. ”I am a member of the Chamber Retail Division shouldn’t I have been part of the discussion on their positions? I was never consulted, therefore, it is my opinion it is just a few of the big players as usual.”Premier and Finance Minister Paula Cox last month said Government will examine the duty charged on all personal imports (including online purchase imported via courier company or the post). This came after Government raised the duty on personal imports brought through the airport.Couriers fear that all personal imports will now be charged 35 percent duty.He added: “Currently, windows, doors, shutters, roof materials are all at 10 percent. Now, under the proposal, if homeowners order directly, it will be 25 percent under the Chamber’s proposal and 35 percent under the Premier's. This may be enough of a negative to persuade people not to build or repair their homes and further stifle the economy.”In a statement this past Friday the Bermuda Chamber of Commerce’s Retail Division said it had been lobbying Government “for an across the board, standardised duty rate of 25 percent for the importation of all personal goods, whether they are imported through the airport, the post office, a local courier, shipping agent or consolidator”.Alternatively, the Chamber raised the idea that Bermuda could explore an alternative to raising taxation through import duties.Chamber executive vice president Joanne MacPhee explained further: “The Chamber’s Retail Division is supportive of a move to standardise the import duty charged on personal goods. Bermuda’s retail industry is in crisis and like many of our divisions they do need Government’s support if they are to survive in this harsh economic climate. The Economic Empowerment Zones and newly branded Bermuda Economic Development Corporation are, alongside others, doing their part to support local commerce, and we applaud them for that.“We all know there are less people in Bermuda now than there [were] three years ago, and those who are here are spending less and shopping more online. This is all having a very direct and negative impact on local commerce, so something has to give if local retailers are to survive.“What that might look like has yet to be agreed. Perhaps this is the time to step back and look at the bigger picture and consider whether or not there is a viable alternative to taxation through import duties.”