Legislation to lift the cap on the return of the excise taxes on Virgin Islands rum moved a step closer to becoming law Tuesday with the Senate Finance Committee's unanimous passage of the Caribbean Basin Initiative Enhancement bill.
The committee's action was announced on radio at midday by Gov. Charles W. Turnbull and later by Delegate Donna Christian-Christensen.
The Senate Finance Committee bill, like the recent House Ways and Means Committee bill, would lift the existing $10.50 cap and return the full $13.50 per proof gallon excise tax for three months beginning July 1 and ending Sept. 30 this year.
"The news regarding the return of all of the excise tax on our rum continues to improve every day," Christiansen said. "While the action taken Tuesday) would lift the cap temporarily, it is significant because it sets the stage for us to get it lifted permanently in the future."
She and Turnbull thanked Sen. Daniel Patrick Moynihan, D-N.Y., for ensuring that the Senate bill included the territory's rum provision. Turnbull also thanked Christensen for her work on the bill and she thanked the governor, "who was present during today's Finance Committee meeting, for his continued support and assistance."
The House Ways and Means Committee passed its version of the legislation earlier this month. Both bills now have to be approved by the full Senate and House.