The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Super Value’s owner is hoping for a 5-8 per cent year-over-year sales increase for February and March 2016, telling Tribune Business: “The signs are there.”

Rupert Roberts said he was unsure where the increased sales were coming from, but expressed optimism that Bahamian consumers had now adjusted their Budgets and spending patterns to Value-Added Tax (VAT).

“I’m hoping that VAT has settled in, and that consumers have rebudgeted,” the supermarket chain’s president told this newspaper.

“January was nothing above last year, but we see indicators and are hoping that we’re going to have a little pick-up.

“It’s been a year to the cycle, VAT has cycled in, and we have figures on top of figures” for the first time.

This means that 2016 will be the first year in which businesses will have prior year sales and financial figures that include VAT, enabling them to obtain better ‘like-for-like’ comparisons and judge likely top-lines in the post-tax reform environment.

“The first month was very slow,” Mr Roberts said in reference to January 2016,”about even with last year, but now we seem to be moving ahead in some departments - produce, and fruit and vegetables.

“Unless people have decided to be more health conscious, take the budget and use it wisely, we see these indicators.

“We hope we get better numbers in sales. I’m hoping for a little increase down to total sales. I’d be happy to see a 5 per cent increase.”

Referring to Super Value’s ‘period accounting’ method, Mr Roberts said he was hoping the supermarket chain had achieved a 5 per cent sales increase for the period February 5-28, rising to an 8 per cent increase for the period to end-March 2016.

“Our goal is 10 per cent, but I’d be happy to get 5 per cent,” he said. “I would say we’re looking between 5-8 per cent for the next period to period, which has already passed, and going forward to March 27.

“I’m hoping that at the end of February we get 5 per cent, and at the end of March we’re getting 8 per cent. It seems to be there.

“I don’t know where it’s coming from. We’re thinking people have adjusted and bought what they have to buy. They had some Christmas bills, caught up and are spending a little more.”

Meanwhile, Branville McCartney, the Democratic National Alliance’s (DNA) leader, told Tribune Business that the party if elected would focus first on growing the economy and creating jobs, as opposed to tinkering with the 7.5 per cent VAT’s structure.

“We need to ensure we have an economy that’s working, and where people are back to work, before we look at reducing VAT on certain items and not having VAT on certain items,” the DNA leader told this newspaper in a recent interview.

Mr McCartney said healthcare, medicines and food were likely some of the products the DNA would target for so-called VAT ‘exemptions’ and lower rates.

However, such promises - which have also been made by the Free National Movement (FNM) - were yesterday dismissed by Michael Halkitis, minister of state for finance, who said they would undermine the Bahamas’ broad-based, low rate VAT model.

Exemptions would also prevent private sector suppliers and vendors from recovering, or ‘netting off’, the VAT paid on their ‘inputs’, increasing business costs and complicating tax administration.

“VAT only becomes a policy once the economy is working and w have people back to work. We have to be realistic about it,” Mr McCartney told Tribune Business.

“That comes with diversifying the economy, reducing wastage, and cutting out cronyism and corruption.”