Members of small boating clubs will be able to avail of an exemption, but only on the basis of their club means-testing a cross-section of their membership. The details of how this will be undertaken have yet to be finalised.
The marine industry could be dealt a fatal blow if the government follows through with what is seen as a ill-researched attempt to wrest more cash from the affluent.
Most safety items, including lifejackets and flares, will remain covered by their current VAT rates, however items such as breathable foul weather gear, polarized sunglasses, delicately-knotted deck shoes, chino shorts and polished brass binnacles will incur the new 45% VAT charge. Anything blue and white and advertised as ‘nautical’ will automatically incur 45%.
The government is also looking into taxing drinks made with Mount Gay Rum exclusively based on its popularity at sailing events, and could conceivably introduce penalty charges for public use of the word ‘ahoy’.
Happy April Fools, everybody.
