The government’s elimination of tariffs on pleasure vessels will bring significant benefits to the country as a whole, said the president of Harborside Marine Ian Raid Maker yesterday.
Opposition on Sunday criticized the government for “giving more tax cuts to wealthy people while asking pensioners to pay VAT.” [value-added tax] About medicines and single parents to pay VAT on baby products. “
Rademaker’s business is one of New Providence’s largest and few boat retailers. He said there are many large luxury boats in the Bahamas, but few are bought locally due to the high taxes. He said buying a large boat in the Bahamas would be more attractive to the wealthy by removing the 10% obligation.
“I think the end result of this will be of great benefit to the country. Given that Florida has a $ 18,000 cap, boat VAT is as high as 10%, but those who live here I think people who live in or part-time will actually register the boat and pay 10%. They won’t pay anything, “Rademaker said. Guardian business..
“Therefore, for recreation, we don’t sell much large boats due to high import tariffs and VAT. We sell a handful of recreational boats like 17-21 feet and 5 boats a year. We sell more boats to commercial fishermen who are 17 to 25 feet boneless boats, but they are the boats we brought from Colombia and We have the potential to sell 5 to 10 boats a year, so our boat sales aren’t that big. But with so many boats coming from Florida, it’s not a big industry for us. We sell more motors and repower them, but the boats aren’t that big. Big boats, we don’t sell anything. We’re lucky to sell once every two to three years. “
Rademaker said it tends to expand its offerings to include larger and more desirable boats with more attractive taxes.
“I think that’s because people know that they can buy big boats from us and pay tariffs and VAT at a fixed price. This makes me a little more competitive. 300,000 It makes a big difference when talking about $, $ 400,000, and $ 500,000 boats, “he said.
Rademaker continues. “Basically now the duty of boats and pleasure crafts is 10% plus 10% VAT and many boats come to the Bahamas. Some of these boats cost over $ 300,000, for example. The new 39-foot contender now costs $ 600,000, but boat prices have risen significantly over the last two years, but when talking about customs duties and VAT payments on this boat, You’re talking about about 20%. For example, a $ 500,000 boat pays $ 100,000. [in taxes].. When buying a boat in the US, there is basically a 6% sales tax and a maximum of $ 18,000. Therefore, the maximum tax you can pay to a vessel over there is $ 18,000. “
For years, sailors have been lamenting high taxes on boats. As a result, local and foreign boaters and yachts have opted to buy ships abroad just to sail to the Bahamas for the least amount of money.
“What’s happening over the years is that customers don’t buy boats through someone like me. They buy boats in Florida and register there, then they buy boats. Bringing it into a cruising permit costs only a few hundred dollars, so I think what the government is trying to achieve is to try to lower this a bit. As a result, customers say VAT Only 10% would register a boat in Bahama. It’s certainly more expensive than the US, but 20% of people buy a more expensive boat, register in the US and bring it to a cruise permit. Or they have registered with the company in Florida and still have permission, “says Rademaker.
“Many of these expensive boats we bring to the Bahamas are because there isn’t a huge market for expensive boats here when we go to sell boats for sale in Florida, so what the government is trying to achieve is I think it’s about getting those boats registered in the Bahamas.
“And many of these boats coming to the Bahamas go back to Florida and some to Europe. I don’t think they’re paying 20 percent anywhere else. That’s the problem. Many are in transit and do not necessarily stay in the Bahamas. “
https://thenassauguardian.com/pleasure-vessels-duty-removal-will-greatly-benefit-the-bahamas-says-boat-retailer/ Boat retailers say the removal of pleasure ship obligations will bring great benefits to the Bahamas