Senator Pushes for Oversight of Cash-Only Businesses During USVI Sales Tax Talks
As lawmakers debated a potential sales tax, Sen. Francis stressed the need to monitor cash-only businesses, warning that unrecorded transactions could deprive the government of revenue. He urged BIR to ensure “what’s due to Caesar is paid unto Caesar."
2025-03-05 19:28:39 - VI News Staff
The idea of introducing a sales tax in the U.S Virgin Islands was the center of discussion during a Committee of the Whole session to pinpoint the causes of the territory’s high cost of living. The conversation, which began on Monday, continued in St. Thomas on Tuesday, this time with testimony from the Bureau of Internal Revenue alongside the Energy Office and Department of Licensing and Consumer Affairs.
During Monday’s meeting, economist Mark Wenner suggested that a sales tax could be used in lieu of gross receipt taxes on businesses. While the economist acknowledged that “great care needed to be used in studying how to” accomplish that feat, BIR director Joel Lee warned that “going from our current structure of gross receipts to only sales tax, the government will receive less money.”
Pointing out that the two taxes could co-exist, Mr. Lee nevertheless argued that the territory has been historically marketed as a duty-free destination. Therefore, when thinking about levying a sales tax, it is important to “consider the impact that this may have on our tourism market, especially as we compete with other Caribbean destinations.”