(CNS): The finance minister has revealed that government is planning to make amendments to the Customs Tariff Law and will also consider a motion put before the Legislative Assembly seeking the removal of duty on medical supplies as part of that review. But Roy McTaggart warned that any duty reductions are unlikely to happen while government faces a loss of some 25% of its regular revenue.
Two private members’ motions filed in the LA for debate last week by Independent MLA Ezzard Miller (NS) were both accepted by government when they were presented by opposition member Chris Saunders (BTW), as he stood in for Miller who was absent due to a family bereavement.
The first motion was to address the problem encountered by merchants, retailers and customers when they return goods overseas purchased under warranty for repair or replacement and have to pay duty on the returned items and freight costs, effectively paying twice for the same thing. Government accepted the motion and said it would address the issue.
The second was asking for the removal of duty from medical supplies, which again government accepted but made it clear that there were no guarantees, given the current circumstances and the precarious position of the public finances, that the removal would happen anytime soon.
McTaggart told the Legislative Assembly that although the motion was one that government “can and will accept”, the timing of any duty reduction would be contingent on the recovery of the country’s finances.
“We are in a very severe time for reduced economic activity, resulting in about a 20 to 25 percent shortfall in government revenues. On a personal note, I would like to see government revenue streams restored to much healthier… amounts before we actually implement such a recommendation,” he said.
The minister added that if it had come six months ago, it would have been readily accepted, but now he felt it was necessary to caution about its implementation when the time is right.
Saunders, who wrapped up the presentation of the motion for Miller, said it was an important motion in such times. Thanking government for accepting it, he said he recognised that “we are in trying times”, but while government finances are challenging, the motion was timely because people are under a lot of stress and there is a need to support those with health problems.
Saunders also urged government to ask the Economics and Statistics Office to track the impact and ensure that the customs savings are passed on to the customers.
