Members of the Barbados Hotel and Tourism Association (BHTA) are eager to get the millions of dollars in Value Added Tax (VAT) refunds owed to them by Government.
At the same time, officials of the association have indicated that they would continue to lobby Government to give them a decrease in the recently introduced Garbage and Sewage Contribution (GSC) levy.
Regarding the VAT refunds, Chief Executive Officer of the BHTA Senator Rudy Grant said he would continue to press Government to pay up what was owed.
He said the BHTA sent out a recent survey to its over 300-strong membership but only about 14 members responded and indicated that they were collectively owed millions.
“Those totalled some $8.9 million, and those 14 members represent about five per cent of the accommodation and direct tourism services members. If that is only five per cent you can understand what the outstanding amount is. But we really want to encourage our members to submit the information so that we can properly lobby on your behalf,” said Grant.
Pointing to the levies that were imposed on the sector in the June budget, Grant acknowledged that they would come to an end on January 1, 2020, and at that time the VAT on the sector would be increased from 7.5 per cent to 15 per cent.
However, Grant said the BHTA had recently outlined some concerns to Minister of Tourism Kerrie Symmonds regarding the pending VAT increase.
“We are concerned about increasing the cost to persons coming to our destination. We would have a consultation with members as well, and I want to give you the assurance that we will continue our discussions,” he told the general meeting.
In the case of the GSC which took effect on August 1 at a rate of $1.50 per day for households and 50 per cent of the existing water bills of corporate entities the hoteliers said it is financially burdensome.
Hoteliers have complained about skyrocketing bills with some hotels on the west coast which normally paid as much as $40,000 per month for water are now having to pay $60,000 for the service.
Prime Minister Mia Mottley had indicated that tourism and industrial businesses could receive an ease, hinting that a cap on payments could be implemented.
However, there has been no ease so far.
During the BHTA’s fourth annual general meeting at the Lloyd Erskine Sandiford Centre on Wednesday, Chairman of the BHTA Stephen Austin continued to make a case for hoteliers to get a reduction in the new tax, stating that west coast hoteliers had a private sewage system and used private waste haulers.
“However, they are now faced with thousands of dollars more in costs due to the GSC. We are working with Government and lobbying for them to have a look at the challenge in offering ease of at least 50 per cent to businesses faced with this increase and still having the cost of running their own services,” he said.
Half the funds collected will go to funding the Sanitation Services Authority (SSA) and the other half will go to the Barbados Water Authority (BWA).
“We understand the need for establishments and for Barbadians to pay their way but we believe it would be fair if a reduction is offered in this way [to the hoteliers],” said Austin.
“We recognize this is an urgent matter because members are already starting to engage in discussions with respect to setting rates. So we are treating to this urgently and it is our desire to continue to have those discussions and be able to come back to you some time soon with a decision,” he promised.
He said the BHTA would also continue its lobbying efforts to get Government to make good on a promise to allow hoteliers access to concessions under the Tourism Development Act (TDA) and the Tourism Development Amended Act (TDAA) with the same level of ease with which Sandals accessed those concessions.
It was at the end of October that Prime Minister Mottley made the promise, saying she would ensure there was a “level playing field” across the tourism industry.
Grant said the Minister of Tourism had agreed on the process and a meeting was scheduled for next week so that the Barbados Revenue Authority, Customs, the Barbados Tourism Investment Inc., the Ministry of Tourism and the BHTA and Intimate Hotels of Barbados could discuss the matter.
“We will seek to ensure that there is a level playing field,” he said, adding that the BHTA would also be making a case for stand-alone restaurants to be given the same privileges as hotels when it came to concessions.
“As you know under the TDAA stand-alone restaurants do not benefit from any waiver of duties and taxes . . . The Minister has indicated that he would wish to treat to that as a phase two element. We will continue to keep that at the forefront,” said Grant.
For years these hoteliers have been getting concessions and assistance to the tune of millions of dollars. At end of next year they will pay little to no corporation tax. No ease, its about sacrifice. They must play their part.
“…Chairman of the BHTA Stephen Austin continued to make a case for hoteliers to get a reduction in the new tax [GSC], stating that west coast hoteliers had a private sewage system and used private waste haulers.”
This writer knows a family in St. George with a “private sewage system” called a cane field and they still have to pay the tax. The SSA truck does not go down their rocky road and goes into the area sometimes every three or four weeks, and the GSC charge still appears on their water bill.
To the hoteliers, these are difficult times where the country is trying to re-emerge from devastation of the economy by the last DLP administration, and everyone is expected to share the burden in restoring “raped” revenues by a band of thieves.
Already hoteliers pay half as much VAT as everyone else (to be adjusted downwards from January 2020), receive some concessions under the TDA, get marketing support from the BTMI to fill their hotels, Government pays for them to attend attend overseas promotional tours, will benefit from the lowering of the Corporation Tax from January 1, and still charge exorbitant room rates. Even with all these to their benefit, many still hide their forex offshore and find creative ways to get around the tax system.
This writer was shocked to hear former BCCI president, Eddie Abed, ask PM Mottley in that “Christmas conversation with Shane Lowe” about granting tax concessions in the face of upcoming reduced corporate taxes, even though shoppers are crying out that NSRL prices still remain on items. Eddie was “concerned” about the excess liquidity in the banking system and wanted tax concessions up to $10,000 for individuals to unlock these monies. He seemed unaware that Government just allocated $10 million dollars for unsecured Trust Loans for persons to either start or expand their small businesses.
The bottom line is that these hoteliers and businesspeople will continue bilking the country and demanding more of Government every chance they get.
No other group continues to “suck on Government’s nipples” more than those involved the hotel sector. Look, grin and pay wunnah water bill like everyone else and release wunnah own revenues to help Barbados get itself back on sound economic and financial footing.
@Carl Harper: I know that cup of coffee I sent you via UPS yesterday would wake you from that slumber, and kick you into reality.
Sending another out to you this evening, that good old Bajan Ecaf our grand parents used is still kicking.
@Greengiant
Glad you are getting yourself ready for our pre-Christmas meeting and cup of cappuccino or latte at Coffee Bean at The Walk. Will tell you the exact time and date later.
What about we the public that are not connected to the sewage. this is an unfair tax to us so there will never be a level playing field.
The tourist season is coming. Our bins have not been emptied for well over two weeks.
Garbage everywhere. It was never this bad before we started paying this tax!
“last DLP administration, and everyone is expected to share the burden in restoring “raped” revenues by a band of thieves.”
That is the kind of thing invalidates your posts CARL “LIZ” HARPER. Were you in an accident in 2008 that wiped your memory? I suspect you were travelling with some other people, on this board at the time of the accident.
@Carl Harper: Very much looking forward to catching up over that cuppa.