The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Bahamian excursion operators yesterday renewed their call for VAT and National Insurance Board (NIB) contributions to be levied on foreign yacht charters so that they pay a fairer share of taxes.

Andoni Lisgaris, president of the Bahamas Excursion Operators Association (BEOA), told Tribune Business that the two sectors must be placed on a level playing field when it came to taxation so that one did not enjoy a competitive advantage over the other.

He added that he had spoken to Simon Wilson, the Ministry of Finance’s financial secretary, about the issue and argued that foreign yacht charters must pay the same taxes as Bahamian businesses.

Mr Lisgaris said: “We brought this to the financial secretary’s attention because of the revenue potential in these foreign yachts that the Government can make money off. Even if they are not going to try to protect our business, at least they should recognise that they are losing out on millions of dollars from these foreign yachts who are not paying the full potential of taxes.”

The Association has previously complained about foreign yachts offering charter services in Bahamian waters that do not pay VAT, Port Department fees, National Insurance Board (NIB) contributions or Business License fees.

It has argued that some foreign yachts make upwards of $250,000 per day from a charter, well in excess of the $100,000 annual registration threshold required to pay Business License fees.

Mr Lisgaris said: “We’re trying to spread the word as much as possible, but at least we are getting some form of acknowledgement. The amount business excursion operators are missing out on on a monthly basis can be well into the thousands of dollars.

“What makes it difficult to quantify the exact cost is the fact that these yacht owners may be having personal cruises in Bahamian waters on one trip, and then it suddenly turns into an excursion on their next trip. It’s hard to compete with something that is not on the same playing field as yourself.”

Mr Lisgaris added: “If you go to a car dealership to buy a brand new car at $30,000, but a Bahamian who has to sell it to you has to pay taxes and, in order to make a profit, they have to sell it for $50,000, then who do you expect consumers to go to? This is what we deal with on a daily basis, and until these foreign yachts pay they same taxes as we do it will never be fair.

“I expect the Government to change the law on foreign yacht charters where they are not only liable to pay the 4 percent tax, but also liable to pay the 12 percent VAT as well, along with NIB and everything just like a Bahamian business, or decrease taxes on Bahamian businesses.”