The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

SOME consumers in Grand Bahama said yesterday that some businesses have raised their prices and are also charging the 7.5 per cent for Value Added Tax on top of that.

“They robbing people,” complained an irate consumer, who claimed that a local fast food franchise operator has increased the prices on all its menu items.

Celia Mackey said she went to a fast food restaurant at Ranfurly Circus and was shocked to learn that their prices had gone up after the implementation of VAT. “Things were tough before the new tax, and businesses should not go up on their prices now that VAT has been implemented,” she said.

Businesses are free to increase prices on their wares once the item is not under price control, like breadbasket items, in the foodstores.

There have not been any complaints on price gouging at the foodstores in Grand Bahama. Customers at Solomon’s foodstore said the item price on goods, as well as the VAT price, were displayed.

All businesses must display the item price, the tax and the VAT inclusive tax price separately. VAT, at a rate of 7.5 per cent, was implemented on January 1.

Some customers interviewed yesterday were satisfied and said that VAT is necessary for the good of the country.

“I accept it,” said Paul Joseph. “The country has a $6bn debt and if VAT could offset it, I am all for it.

“Bahamians need to understand that our money has been on par with the US dollar since 1966. If we have to implement VAT to avoid the devaluation of the Bahamian dollar, then so be it.”

Shopper Gordon Higgs said even though things are tough he also supports VAT. “It isn’t so bad and we will have get adjusted to it,” he said.

Mr Higgs said Bahamians go the US and shop all the time and pay the sales tax in that country.

“We cannot afford for the Bahamian dollar to be devalued. The Bahamas is faced with high debts and government has to bring it down,” he said. “We have to wait and see the results of VAT on paying down the country’s debt.”

Other customers, however, said they cannot afford VAT. “I went in the store and purchased several items. (I planned) to spend only $60 and I end up spending a total of almost $70 bucks,” said a shopper who identified himself as Emmanuel.