The Office of the Governor has declined a request to extend the Virgin Islands Tax Amnesty Program by 30 days, stating that prolonging the initiative would not be in the Territory’s fiscal interest amid constrained cash flow and mounting financial obligations.

The response follows a February 9 request from Senator at Large Angel Bolques Jr., who urged the administration to grant taxpayers additional time under the amnesty program. According to the release issued Thursday, Government House reviewed the request but determined that an extension is not warranted at this time.

While declining the extension, the administration acknowledged Mr. Bolques’s advocacy. The statement notes that Lieutenant Governor Tregenza Roach and Governor Albert Bryan Jr. share the senator’s interest in ensuring that Virgin Islanders are treated fairly, informed clearly, and provided with a practical path to resolve outstanding obligations. The release further states agreement that any taxpayer-affecting program must be transparent, accessible, and predictable.

At the same time, Government House noted that the 90-day amnesty period established under Act No. 9050, passed by the 36th Legislature, was “carefully structured” to allow individuals and businesses to bring their tax obligations current without penalties or interest. The program was widely publicized, available both online and in person, and implemented with the understanding that firm deadlines are essential to fiscal discipline.

The decision not to extend the program, the administration said, must also be viewed within the territory’s current revenue environment. The Government of the Virgin Islands is presently at a low collection point in the budget cycle, according to the release, when revenue receipts are typically weakest and cash flow most constrained, even as essential obligations continue to come due. The territory is managing significant financial constraints, including outstanding vendor payments and pending tax refunds owed to Virgin Islanders, the administration said.

According to the statement, extending the amnesty program would delay anticipated revenue collections at a time when the government must strengthen cash flow to meet financial obligations, protect core public services, and honor commitments already on the books.

The release further highlights a statutory concern regarding tax refunds: under Virgin Islands law, interest accrues on delayed tax refunds at a rate significantly higher than what the government earns on its cash balances. That statutory interest cannot be waived administratively. The statement warns that each additional day refunds remain unpaid increases the government’s financial exposure and ultimately costs taxpayers more.

“The responsible course of action is to accelerate compliance and revenue realization, not postpone it,” the administration stated.

Government House further acknowledged that the amnesty period overlapped with the holiday season but noted that the program spanned a full 90 days, including multiple weeks of normal government operations. Agencies remained open, online systems were available, and accommodations were made to assist taxpayers in participating.

The administration reaffirmed its commitment to:

• Reducing vendor payment backlogs

• Accelerating the processing and payment of tax refunds

• Improving compliance rates without increasing long-term liabilities

• Strengthening the Territory’s overall financial stability

The statement encourages taxpayers who have not yet taken advantage of the amnesty to do so before the statutory deadlines, noting that the government stands ready to assist residents and businesses in resolving their obligations.

“Sound financial management requires difficult decisions. At this time, extending the Tax Amnesty Program is not in the best fiscal interest of the Territory,” the administration concluded.