No Customs duty relief for generator importers
Residents without power may not be getting a duty break on generators after all.
Both retailers and residents lobbied Government this week to suspend the 33.5 percent duty put on electrical generators as some 10,000 homes and offices were still without power last night.
But yesterday the Finance Ministry said it was not in its power to waive the duty charged on generators. If enacted, the measure could have saved residents buying up generators as much as $400 each at the cash register.
The machines, which power electrical current, are an out-of-pocket expense for consumers and are not covered by insurance as are many other items being bought up to deal with storm destruction of properties.
Premier Alex Scott was reported as saying on Wednesday that the idea proposed by Gorham's owner Rod Ferguson of waiving duty on generators was worth "serious consideration" but the Ministry of Finance said yesterday it could not waive the Customs tariff levied on generators. Instead the matter would have to be put to a vote in the House which, as of now, is not set to reconvene until late next month.
A Ministry spokesman said: "Any change in the rate of duty on generators would have to be approved by the Legislature before it could be implemented."
There was no word yesterday on whether or not lawmakers could be brought together for an emergency session of the House as residents grapple with the mess left by the powerful category three storm.
Generators have sold out across the Island and there have been reports of some being stolen. But duty on generators - the hefty 33.5 percent - means importers must charge several hundred dollars more at the till. The selling price for generators varies depending on their size but a popular 5,500-watt model was being sold locally for $2,200.
Government did say yesterday that measures to help residents left devastated by future emergencies could be in the offing.
The press statement said Government was considering "an amendment to the Act which could provide for the temporary suspension of rates of duty on specified items in times of emergency. If such a policy was adopted, the amendment would likely be considered in the next session of Parliament."
The Ministry press statement added: "The public may be heartened to know that the Premier (Alex Scott) has had discussions with the Minister of Finance (Eugene Cox) on what initiatives may be undertaken now to provide relief to householders within the present confines of the law.
"A statement on the outcome of these discussions will be announced within the next week together with details of a package of emergency assistance measures covering temporary housing, employment, building materials and loans."
