The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net’

Businesses yesterday cited uncertainty, confusion and lack of information as to why they are not taking advantage of the Over the Hill Tax Free Zone (OHTFZ) incentives.

Tonya Gibson, general manager of Apex Awards, Signs & Engraving on Mount Royal Avenue, told Tribune Business she was told by the constituency’s MP that her business was not eligible for the various tax breaks and other investment incentives. “I think they said the zone stopped at Centreville,” she said.

“What we were told is that we are right outside of the Centreville zone. I understand from our member of parliament that he said he was trying to see if they could have extended it to our area, but we are not in the zone.”

The Over the Hill Tax Free Zone initiative was launched in late 2018 to help stimulate economic activity, and regenerate inner city, by allowing residents and businesses present in the designated areas to access certain goods and materials tax-free. Real property tax and business licence fee concessions are also available, as is the tax-free importation of commercial vehicles.

The initiative was initially targeted at Bain and Grants Town and Centreville, but was subsequently extended to the St Barnabas and Englerston constituencies.

Nyoka Johnson, general manager of the Paint Depot on Mount Royal Avenue, said: “I can tell you for sure that we have been paying VAT and customs duties on everything we have been bringing in, so I’m definitely not aware of this Over the Hill Tax Free Zone.”

“To be honest with you we have not been benefiting from this, and no one has even corrected us on it. Even if we weren’t aware of it no one has been saying from a Customs side of things that we don’t have to do certain things, so we are not benefiting from this.”

Marilyn Munroe, owner/operator of Jazenya’s Creations Dressmaking on Ross Corner, said she has been taking advantage of the business licence waivers. She added: “The only thing I wasn’t taking advantage of is bringing in any stuff from the US that I would use in the business.

“I just learned the other day that I have to apply for it. Because I’m a dressmaker, things like thread - or if I bring in any fabric or machines or anything like that - I wasn’t taking advantage of those concessions.

“For me, I think this is a good initiative, but I can’t speak for anybody else. Because we aren’t making a lot of money, and then for us to be paying for business licence fees every year, was very taxing and I have been in business for over 20 years, so I can tell you how much it adds up.”

Leon Strachan, owner/operator of Island Tech Solutions on Rosetta Street, said he has not been taking advantage of the Over the Hill Tax Free Zone because he does not fully understand how it works.

“I just never got much information on the initiative,” said Mr Strachan.

Lachez Ferguson, owner/operator of Shift Enterprises on Market Street, said she has not had any need to use the benefits under the Over the Hill Tax Free Zone yet, but “once the need becomes available then I would like to get exemptions on certain things”.

She added: “This could be done better than this because the government doesn’t give much information. I got a form to fill out from the government before and I want more information on the car I want to bring in. My business is a car rental, so the only things I bring in are cars and car parts.

“I have the application right here but I didn’t submit it to the government yet because some of the things they are asking me for I had to clear it with my landlord. The application is burdensome, and then it doesn’t have much information on it and there is nobody to call or to find out any information from. The need to give the public more information or make information more available.”

Another Bain and Grants Town businessperson, speaking under condition of anonymity, said: “I only heard about the tax-free initiative, but I didn’t hear any of the details on how to go about applying for it.”