Chairman of CARICOM and Grenadian Prime Minister, Dr. Keith Mitchell, has called on Heads of Government to collectively consider reducing the level of taxation on airline tickets to mitigate the expense of travel within the region.
He was speaking at a CARICOM meeting held in Grenada on Wednesday, July 5th, 2017.
He said a collective agreement for the reduction in tax levels would signify a “significant installment” to the Regional Integration account.
“It would represent a significant installment to the Regional Integration account if Heads would collectively agree to reduce airline ticket taxes as well as other fees which attach to the cost of intra-regional air travel,” he said.
Mitchell is also of the belief that there is too much politics involved on the boards of airlines such as LIAT.
“Colleagues I have long held the belief that too much political presence on the board of airlines such as LIAT is not helpful is not helpful to its proper management and efficiency. LIAT’s sustainability would have benefitted if it was run more as a private sector operation,” he said.
According to him, Governments could subsidize LIAT flights that take routes in the best interest of the respective countries, and this will be a benefit to the airline.
“Governments then subsidize flights to given destinations or routes that in their best interest of their respective countries will do so now with international airlines, we could do so with LIAT also,” he remarked.
Skerrit should start by significantly reducing these draconian taxes and fees on tickets, so that the average Dominican can leave the country. He and his boys are traveling worldwide on CBI monies. The little man on the island do not have such luxury and access to a bank like the Big Boys do. Meanwhile, they are dressing in Red for simple stuff like the opening of a bridge, but they cannot afford a plane ticket to St. Lucia nearby. Labor is working hard to cripple Dominica.
Keith Mitchell can start by removing the taxes and fees from the price of the airfares that originate or end in Grenada. That would show leadership. Don’t just talk the talk.
Very good suggestion.
I totally support PM Mitchell. We were all blaming Antigua for mismanaging LIAT, look at the mess Barbados has the company in. LIAT employees should look into operating the airline, it would be more profitable. The governments are intentionally crippling LIAT, especially Barbados.
I don’t agree. IAT is headquartered in Antigua and that is where it is overstaffed. They have to slim down that company ruthlessly.
QUESTION, From your comments, you appear to be very knowledgeable about the operation of LIAT, In this regards can you care to comment on (1) Why Antigua should not take some responsible for the mismanagement of LIAT, (2) Indicate what are the mess that Barbados has placed LIAT, (3) How is Barbados crippling LIAT and (4) If your suggestion for the LIAT employees to operate the company, are you supporting the Grenada Prime Minister statement as expressed at the last Caricom Heads meeting. Your response would be much appreciated.
Duh, elementary….what took them so long, want to wait another 53 years to see taxes too high on tickets ?
I wonder if they even know that taxes on vehicles at Dominicans customs are twice the cost of the vehicles. Dominica customs duties is a beast. Even pm say he will step in and remove compounding, and that will lower the beastly vehicle duties from 160% to 158%. Ooh thank you pm, we are lucky but bear in mind that countries go to war over exhdorbitant taxes levied on their goods by other countries.
I think the governments of Caricom, and the OECS in particular must change their mindset and appreciate that in 2017 air travel, especially inter-island travel, is no longer a luxury but a necessity. If we are to truly stimulate free trade and movement we should stimulate such traffic and provide it even at cost price. We talk a lot about investments and give concessions and other stimuli but air travel is still seen by too many as a cow to be milked when instead it should be seen, in our case as part of our economic infrastructure. If Caricom can not address this, what are we talking about?
UK Dcan, An that is the reason why we will continue to beg other countries for all our needs, instead of doing what it takes to move our region forward. We do not have visionary leaders. We have a bunch of small-minded backyard politicians.
Instead of Skerrit going about building toilets for people, he should do what it takes to allow people the ability to look after themselves.
The issue of punishingly high airfares has been a major problem in the Caribbean, yest they keep talking and seem unable to do anything about it. This group of guys have been in power for so long that they no longer have any vision to see things differently.
I am not a big fan of term limits, but it does allow fresh eyes to get in and do things differently.
This is akin to someone who lives in a filthy house. After they have lived in that house long enough they stop seeing the are living like pigs. No disrespect to pigs. They might do a better job than that lot.
I share your views, but when it comes with dealing with Caricom and or OECS governments, this can be very difficult and in particular when it come to benefits for all it citizens. When it comes to LIAT, in January 2013 meeting the chairman of LIAT suggested that Caricom have on their agenda dealing with regional air travel, in May 2015 CDB called for a study to establish a Regional Air Transport Authority, in the same month of May 2015 CDB launched a study on Regional air travel. I am to assume that the high cost of air travel would be priority and to reduce that cost, it would be interesting to know the recommendations of these studies. For regional travel LIAT is essential, but tourism from north America and Europe, Dominica depends on LIAT for our stay over visitors, all the other have international airports. Who speaks for LIAT and who are its shareholders.
I hope what the CARICOM Chairman stated will come to fruition. Air fares are expensive. If the taxes are lowered, it would encourage more people to travel. The airlines and countries they travel to and from will reap the benefit of it. Charge too much, few will travel.
You tax people and increase fares they will stay put. It happens in Canada. These days people are seeking reasonable costs. They also surf the web for airline bargains. Of course, they must be careful that they are not fake and deceive them. This occurs. We are warned.
Deviating from this, it is the reason why some big stores in Canada/Toronto have gone bankrupt; liquidated. There store items are too expensive. Walmart is a reigning store. It is doing good business and has an excellent return policy.
I have a small hand held pedometer with an alarm which I keep with me when going out. I have had it for some years. The battery died. I wondered where could I get batteries for it.
I went there. The package has five batteries for $1.25 plus tax. The following day I returned there and bought three more packages in case I will need them in the future. I can inform you I was happy about the amount of batteries in the package and the cost. That was a deal.
I went to the store where I had bought the pedometer years ago which is a few doors away from Dollarama. I asked one of the salesmen if he could open the pedometer which needed a very small screw driver. I have screw drivers but not that minute size. He opened it and placed the batteries in it. I tried it and it is operable. The alarm is noisy of course. It could also scare criminals away. It even talks if it is on and says how many meters I walked and shows it. That is the idea but I keep it as an alarm system. It is really called a panic alarm.
Even that store has batteries but the package has less. I would have had to purchase more than one package which would be expensive.
Admit it, you are just a cheapskate, skinflint and a miser. Yes, Wallmart is cheap but also has the lowest customer satisfaction rating ion the U.S.A.
The cost of items increased to as much as $4.00. I heard it will be increased further. I told someone if they keep it up they will eventually close for there is always competition.
Canadians are no exception when it comes to bargains. Those who reside here adopt the same. For me, the items have to be good and useful. That store has some good ones. It isn’t everything it sells I would want to purchase. I bought a few batteries in case the cost increase. I know, in time, it will.
What we save in one we spend in another. It may not be a win, win.
Would you like to pay $20.00 plus tax for two packages of batteries when you can get them for much less? The same for searching for airline low-cost.
I have bought regular batteries at Dollarama. I did not realize they sell those batteries. In fact, they were close to the other batteries. I was not aware of the size. The sales lady at Walmart told me to go to one of those stores and yes, due to the cost of those batteries. She was kind enough to give me the number of the battery and I went there. I was appreciative.
Especially these days with escalating cost of living, people are into saving and not overspending if they can help it. Even under normal conditions all of us give this advice to others. We are broadminded people.
For your information which you may not know, for some years, Dollarama is no longer a dollar store. Only a few items are $1.25; not one dollar but some people call it a dollar store. I have said it should change its name.
The cost of items increased to as much as $4.00. I heard it will be increased further. In a few years it will be doubled. These enterprises see how much money they make. They get greedy and want more. In the meantime they could lose customers.
I told someone if they keep it up they will eventually close for there is always competition. I know what I need and I only go there if there is something that store may have what I need.
Canadians are no exception when it comes to bargains and sales. Those who reside here adopt the same. They are not cheapskates. They (we) have other expenses which is impossible to be thrifty about.
For me, the items have to be good and useful. That store has some good ones. It isn’t everything it sells I would want to purchase.
I bought a few packages of batteries in case the cost increase. This is smart.
What we save in one we spend in another. It may not be a win, win. Hope you learned something from this.
Late this afternoon I returned to Walmart to purchase an item. I thought I would look for the lady to thank her. I’ve known her for years. Incidentally she once told me that she is originally from the US.
I saw another lady who worked there. She told me she is on her dinner break. I told her about the batteries and to inform her about it. Someday I will see her again. Actually she resides not too far from where I do.
People are looking for bargains; for sales or lower costs even when planning a vacation. Unfortunately in the islands and with airline costs, passengers have no alternative but to pay the fare.
This is why some who reside abroad will not return home permanently. It is too expensive residing in the islands. Although, dollar for dollar, it is expensive where I reside. The stores compete with each other for customers and to retain them. Do we ever love sales in this country?
Considering the cost of items in D/A I wonder how the poor cope.
What is the point of taxing mobility at all? Is it that you want to tax “the rich” (without inducing them to abandon their businesses, to the ruin of everyone), so you instead tax the buying of airline tickets because such people must be rich? What is the benefit of building such walls between adjacent islands? Incidentally, a tax that is even worse is a communication/telephone tax, because by exchanging information, we can often avoid transporting people and lorries and airplanes full of goods.
that is the best news I’ve heard coming from Caricom, but of course they don’t give a rats behind taxes going to stay mark my words they allowed use to suffer years and years, now you think anything going to change they DON’T CARE
i once bought a ticket between dominica and antigua and the taxes were GREATER than the actual airfare from LIAT. so LIAT i dont blame in this case. cos they charge 200 and the taxes is 205. what madness!
The taxes should never be higher than the fare. This is ridiculous. It is called overtaxed and it is not fair to passengers. It discourages people from flying.
Try Norwegian Air (Norwegian.com). This is a very reputable, topnotch discount airline which offers fares as low as U.S.$.69.00 from New York JFK to Pointe-a-Pitre in Guadeloupe and U.S.$.120.30 for the return leg, total U.S.$. 189.30. With such prices you can afford to overnight and pay the ferry. Like prices are also available to/from Fort-de France in Martinique.
PS. Depending on your destination you could also save yourself a taxi fare to/from Melville Hall at E.C.$.100/per person, one way.
Did anyone ever notice that when you buy an airline ticket a good 50 plus percent is actually taxes? taxes of the country you coming from and to the one you are going! SMH. Then to add insult to injury Skerrit, on the sly, increased our departure taxes as if the taxes already paid not enough.
I ALWAYS KNO THE $$$$$$ CAN STRETCH MORE. am seeing so many area where we can ease up people
but then again……..
aint nothing gonna change…those pple to greedy
The most sensible thing I’ve heard coming out of the Caricom meeting all week. We can not be said to be promoting tourism and general mobility and tax it to death at the same time.
I’m all for this. It’s time for all these high fares to be slashed. Just a few hours from each other, some of us less than 30 mins away and we still pay $400 USD to move from one point to the other. Madness!
That I want to hear wi
Thanks You!!..Now let’s wait to see if it will be done. Taxes in the OECS on a Whole is ridiculously high. The Governments are too comfortable bleeding their working population so much so that they can’t see ways otherwise to grow the economies..
Why is importation tax on vehicles in Dominica at over 100% of the cost of the vehicle..? That’s Madness..Everything is just expensive.
Never mind taxes. How about implementing the EPA we signed up to with the EU to lower import duties on goods from Europe? We have a habit of signing up to loads of initiatives, and agreements we have no intention implementing, only hoping they will bring another handout.
DOMINICAN, I am to assume that you are aware as to all whats involved in the EPA agreement. There is an old saying, There is nothing as a free lunch. As consumers we all would like lower duties and have cheaper goods. While in the EPA the ACP countries will have freer access for the export of agricultural products, but have you considered the investment, services and right of establishment. Over the long term, EU entities will be able to compete with us on our own turf. Coming back to the saying, There is nothing as a free lunch, With all the hundreds of millions of grants, and very low interest rate on loans from China, could there be unlimited concessions for their nationals to come here and operate bushiness and compete with locals. We must look beyond an arms length.