The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A leading auto dealer yesterday described the roll-out of Value-Added Tax (VAT) as “devastating” from a business perspective, telling Tribune Business he was holding out hope that commerce would improve once consumers fully adjusted to it.

Ben Albury, Bahamas Bus & Truck’s general manager, told Tribune Business that while he had seen some foot traffic, business has generally been slow since the New Year.

“From a business perspective it’s been devastating. Business has been very slow. From what I understand talking to some of the dealers, the only real sales they have been getting is business houses. I have only sold one vehicle for the month. It’s been very poor,” said Mr Albury.

“The first week we were getting all the hiccups out of the system and dealing with that. Now we have got that out of the way. We have seen some foot traffic, but I still think we are dealing with the reaction of the public and everybody levelling off and trying to get adapted to the new taxation.

“With some vehicles it could result in up to $6,000 more [in price]. That’s been tough but we are fighters and we are here to fight. We’re not willing to give up too quick. We’re going to keep pushing and hope that things are going to improve in the near future.”

As for the Government’s VAT border deferral system for auto dealers, Mr Albury said: “We did have a meeting with them after VAT was implemented. I did try to get involved in the process but it wasn’t happening as quickly as they said it would.

“It seemed a bit disorganised and I have opted at this point not to do that. I had 30 cars on the dock and they were racking up more storage charges than what it would have been worth. I don’t see that as a proper solution, the way it was pitched. Something better needs to be set up. Right now I’m just paying at the border.”

Under the VAT Rules unveiled just before Christmas, it was revealed that auto dealers must apply to the VAT Comptroller to obtain permission for the deferral of the 7.5 per cent tax at the border, plus lodge a performance bond (security) equal to “100 per cent of the estimated VAT payable”.