The Yacht Services Association of T&T (YSATT) said the impending imposition of VAT on goods and services provided to foreign yachts could result in a significant drop in business, reduced foreign exchange earnings and layoffs in the yacht service industry.
The group said in a statement yesterday: “In virtually all countries services provided to foreign vessels which will be leaving the country are treated as an export and are deemed VAT free. By imposing VAT, more cruisers will choose to have work done on their yachts in other Caribbean islands.
“This is completely contrary to the Government’s stated intention of promoting export earnings and boosting employment.
YSATT wants Government to review the decision, remove VAT and put other incentives in place to enhance the industry’s competitiveness.