In an effort to organize a meeting with all stakeholders in the VI Rum Industry, Senator Carla Joseph has written to Senator Hubert L Frederik, the Chair of the Legislature’s Committee on Economic Development and Agriculture.
Senator Joseph stated that the Committee on Economic Development and Agriculture must convene all key stakeholders to discuss the status of rum production, sales, and marketing in the US Virgin Islands in light of President Donald Trump’s signing into law the One Big Beautiful Bill Act. This Act includes a permanent extension of the rum cover over tax at the higher rate of $13.25 per proof gallon.
In her letter to Senator Hubert L. Frederik, Senator Carla Joseph recommended that all stakeholders be convened to discuss the status, any challenges, and potential opportunities to optimally position the Virgin Islands for a significant return on investment for the industry and the people of the Territory. This is a substantial development, and it is essential that the Territory’s Rum Industry is in optimal condition to capitalize on this opportunity.
Senator Carla Joseph strongly encourages the committee to arrange a hearing with representatives from the Virgin Islands Rum Industry, Distributors of VI Rum Products, the VI Department of Tourism, the VI Port Authority, and the Office of the Governor in advance of the implementation of the higher rum cover over tax rate, which is set to take effect after December 31, 2025.
Senator Carla Joseph stated, “Given the competition for revenues in the Rum Industry and the evolving global markets, let us be proactive in establishing the Territory for success.”
In response to Senator Carla Joseph’s letter, Senator Hubert Frederick thanked Senator Joseph for her advocacy for the economic well-being of the Virgin Islands. Senator Frederck indicated that he has initiated contact with key stakeholders in the rum industry, to begin discussion prior to extending formal invitations for a legislative hearing on the matter.
In his letter to Senator Carla Joseph, Senator Frederick said, “Rest assured that the Committee on Economic Development and Agriculture remains fully committed to advancing this important discussion.
I share your sense of urgency in ensuring that the Virgin Islands is strategically positioned to maximize the benefits of the permanent extension of the rum cover-over tax rate. “Senator Carla Joseph commends the Bryan Roach administration’s success and efforts in advocating for the permanent extension, which were facilitated by U.S. Senate Finance Committee Chairman Mike Crapo, R-Idaho, who advocated for the inclusion of federal rum excise taxes to generate additional revenue for the U.S. Virgin Islands and Puerto Rico. She also extends gratitude to Delegate Stacey Plaskett of the U.S. House of Representatives and Rep. Ron Estes, R-Kan, for their contributions
