Skelton: New Tonnage Bill May Raise Imports
Opposition member Ronnie Skelton warned that the Tonnage Duty Amendment Bill 2026 could increase costs for importers and push up supermarket prices if locally connected vessels operating under foreign registries are not exempted. Government says the measure, introduced by Premier Dr Natalio Wheatley, modernises duty collection and will not be brought into force immediately.
Opposition member Ronnie Skelton has warned that proposed changes to how tonnage duty is charged in the Virgin Islands could increase import costs and place added pressure on consumers. Skelton raised his concerns during debate on the Tonnage Duty Amendment Bill 2026 in the House of Assembly on March 17.
The bill, introduced by Premier Dr Natalio Wheatley, would shift the territory from an annual tonnage fee to a per-call charge for vessels entering BVI ports. Under the proposed law, tonnage duty would be assessed at $1 per gross registered tonnage (GRT) per call, capped at $85 per visit.
The draft includes exemptions for certain vessels, notably ferries licensed under local law and ships registered in the Virgin Islands and owned by Virgin Islands companies. Skelton said those exemptions may not reflect the reality of local trade. He pointed to cargo routes regularly served by locally connected vessels that are registered overseas — for example, boats that ply between the BVI and Puerto Rico — and questioned whether they would qualify for relief under the new framework. "These boats are our local boats that go to Puerto Rico and come and go," he said, noting that if they are not exempted, importers could face higher operating costs that would likely be passed on to shoppers. "We need to make sure that we’re not carrying up the prices in the supermarkets at this critical time," Skelton added, urging lawmakers to protect domestic shipping activity and avoid unintended consequences for consumers.
Government members argued the measure is largely administrative and designed to modernise duty collection by aligning payments with actual port usage, improving efficiency in the way duties are assessed and collected. Officials also stressed that the bill would not be brought into force immediately, citing sensitivity to global economic conditions and their effect on prices in the territory.
For BVI residents, the debate highlights the balance lawmakers must strike between updating revenue systems and protecting an import-dependent economy from new cost pressures. Lawmakers will need to consider exemption criteria carefully to ensure that local maritime operators and consumers are not disproportionately affected when the legislation is finalised.
Primary source: BVI News