The Anguilla House of Assembly has approved a motion allowing Frangipani Beach Resort to be exempt from more than EC$1.16 million in customs duty and excise tax.
The waiver will cover items needed to renovate and upgrade the property and will be valid for a year, backdated from 25 June and continuing to 24 June, 2025.
Premier Ellis Webster, who also serves as finance minister, told parliamentarians that it is a common method used to boost the tourism infrastructure on the island.
“It incentivises the hospitality industry and the businesses to expand, to upgrade and to stay in line with the product that Anguilla is known for – high level tourism products,” he said.
On presenting the motion on Tuesday, 10 December, the premier said the total duty and tax loss to the government is expected to total $1,164,236.80.
The motion extends for another year the exemption agreed in a memorandum of understanding in 2006 between resort’s parent company, Paradise Holding Company, and the government.
Webster reminded parliament that the government has provided similar exemptions in the past to Frangipani Beach Resort.
In 2021 the Anguilla House of Assembly approved a motion for a duty and tax waiver which it expected to result in an estimated $3,199,769.84 loss to the government.
“Now they are expanding,” the premier said, “and it is included in the MOU that they can request extensions of the time.”
He added that the company can also request a change in terms of the goods to be imported for building and for maintenance.
The list of goods in the latest exemption includes building materials, furniture, a pickup truck and office supplies, Webster told members.
Meanwhile, some items such as saws and drills that can be purchased in Anguilla had been removed from the list, he said.
The motion was moved and seconded, with no members rising to debate before it was approved.
“I appreciate that the members would be in agreement with approving these exemptions as the property continues to expand and provide the high level of hospitality that it is known for,” the premier said.
“I would encourage that we continue to support the hospitality industry.”
