President Bill Clinton has included in his year 2000 budget a proposal to return to
the Virgin Islands the entire $13.50-per-gallon federal tax levied on Virgin
Islands rum.
This is an increase of $3 over the present $10.50 per gallon returned to the V.I. government. The rate had been $11.30 until this year but it dropped to $10.50 last fall when Congress refused to leave it at $11.30 or increase it to the full $13.50 as territorial officials had hoped.
Experts estimate the difference could mean an extra $12 million into the coffers of the financially strained territory.
After attending the official White House announcement, Delegate to Congress Donna
Christian-Christensen said, I am pleased the president has again proposed this increase to assist the territorys economic recovery. While we were unable to accomplish this increase by the end of the 105th Congress, I believe the inclusion in this years budget will provide the needed push to
obtain congressional approval when it is considered later this year.
In addition to the rum-tax increase, the president's budget contains $1 million to assist in protecting threatened coral reef ecosystems. Christensen said.
These funds will allow us to prevent the destruction of our coral reefs which are
so important to maintaining a quality tourism program, the delegate said.