Super Value to collect $20-$25m VAT for Gov’t

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Super Value’s owner yesterday said he expects to collect $20-$25 million in Value-Added Tax (VAT) for the Government this year, while warning that much more consumer education is required.

Rupert Roberts told Tribune Business, in a thinly-veiled reference to recent Price Control Commission inspections, that the Government needed to “help, not hinder” tax-collecting companies such as his.

“This year, we expect to collect $20-$25 million of VAT for the Government,” Mr Roberts told Tribune Business. “We also expect to have to loan them $20-$25 million via a revolving loan, leaving 7.5 per cent at the border.”

That is a reference to the VAT that Super Value will have to pay on all its imported produce when it arrives in the Bahamas, and passes through Customs, although it will be able to claim back - or ‘net off’ - these tax payments against what it receives on its outputs.

“Government and government agencies should be able to help us do that, not come around and hinder us,” the Super Value president said, in reference to recent price control encounters.

“All we want is a spirit of co-operation. We’re co-operating, and helped them implement VAT, and are prepared to help them run it. But the public is getting the wrong impression.”

Super Value, due to its sheer size and high turnover, will be one of the Government’s largest VAT collectors.

However, noting the considerable consumer education challenges that remain, Mr Roberts recalled how several ladies had already phoned him to complain that Super Value had “overcharged” them VAT.

When he probed their complaints, he found they were under the mistaken impression that VAT was a flat rate levy of 7.5 cents per item - not 7.5 per cent.

And, describing another encounter in a Super Value store, Mr Roberts said: “I had a lady come in and say: ‘Where is the price controlled items list?’

“I reached up above her head, and passed her a two-and-a-half inch book. She said she wanted a sheet. I said: ‘No, this is the price control list’.

“She said: ‘The price controlled items are supposed to be VAT free’. I said: ‘No, they’re supposed to be duty free; you have to pay VAT on them’.

“She replied: ‘The Price Control Commission did not say that’. I said: ‘Here’s the phone number for the Price Control Commission, here’s the phone, take the number and call them’. She declined, so I said: ‘Take the number and call them’.”

The VAT Education Task Force is now planning to switch its focus to consumer education, having completed its work with the business community on the registration process.

Comments

The_Oracle says...

I have also heard the mis informed, who are always most vocal,
Making erroneous statements and spreading mis-information.
It is a shame that no one in government seems able to clearly state for them what they will see,
nor does it help that most Bahamians have no clue to begin with.
Simple math is beyond most.
I have heard of complaints that duty free items are not supposed to attract VAT.
Wrong.
Duty free does not mean VAT free.
Liquor has been Duty Free for years, but is not tax free.
Liquor is cheaper in Florida!
At the end of the day, the Government has failed in National finances, transparency, rule of law, crime control, and now, education on a new tax, instituted because of their failure to collect all the other taxes.
Putting E.J. Bowe out there on a very public witch hunt is beyond reprehensible, especially having not educated him prior to his appointment.
Incompetence with power is a dangerous mix.

Posted 7 January 2015, 3:36 p.m. Suggest removal

GrassRoot says...

hey chill, Mr. Bowe will put Mr. Mortimer and his movie price hike in his place! I would say, a worthy cause.

Posted 7 January 2015, 4:40 p.m. Suggest removal

The_Oracle says...

Mr. Bowe has no authority over movie ticket prices, so not sure what he can do except make noise , but I suppose he has to justify Government pulling him out of the retirement bushes somehow.
Meanwhile, price hikes due to increased costs aught to wait until increased costs are actually experienced.
Increasing costs at the same time as a new tax is implemented is not too sharp!
Meanwhile, duty rates have dropped enough to be seen at point of sale so we shall see.
Inventory levels at the old duty rates will be depleted at various times over the following months depending on the items movement.
Mr. Bowe aught to be investigating and reporting his findings AFTER a conclusion is arrived at.
Casting dispersions on peoples characters equates to lynching.
Is one not innocent until proven guilty?
or have we thrown that law out also?

Posted 7 January 2015, 6:11 p.m. Suggest removal

The_Messenger says...

Oh look another 20-25 million dollars raised that will be used to build another crooked politician another new home when it should be going into the treasury. Nothing to see here.

Posted 7 January 2015, 7:11 p.m. Suggest removal

asiseeit says...

So now that the private sector is collecting taxes for the government, how many civil servants have been made redundant?

Posted 9 January 2015, 12:37 p.m. Suggest removal

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