A Bill to establish a Climate Resilience Levy to be paid by all transient visitors in hotels, apartments and short- term rentals, was passed in Parliament yesterday.
This levy of EC$8 or US $3 to be paid per night by transient visitors, per room occupied for no more than 30 days, comes as part of the government’s thrust to increase the source of revenue dedicated to respond to issues of climate change.
In 2017, a Contingency Fund was established and a levy on consumption was imposed by increasing the Value Added Tax (VAT) rate by 1% to provide a dedicated source of revenue to capitalize it.
However, the International Monetary Fund (IMF) in its Article Four Consultation here in St. Vincent and the Grenadines, had recommended that the government should increase resources for the Contingency Fund since the resources previously allocated are insufficient.
In his wrap up comments prior to the passage of the Bill in Parliament, Minister of Finance, Camillo Gonsalves said an influx of tourists comes with environmental costs, and he is confident the tourists upon whom this levy will be imposed will have no problem making a contribution towards protecting this country’s environment.
He expressed optimism that this piece of legislation will improve our readiness in the event of a disaster, will help us both before and after the eventuality of a disaster, and will have minimal to negligible impact on tourism.
Minister Camillo Gonsalves said this Act will be implemented as of June 1, 2018.
The Attorney General’s Reference Constitutional Questions Bill and the Vincy Table Tennis Foundation Incorporation Bill also received their first reading at yesterday’s meeting of Parliament, while, four Private Bills received their second reading and were sent to Select Committees.
Parliament has adjourned until Thursday May 24, 2018 starting at 10:00am.
