Monday, July 2, 2018
By MORGAN ADDERLEY
Tribune Staff Reporter
madderley@tribunemedia.net
MANY shoppers flocked to stores on the weekend to save a few dollars hours before value added tax increased from 7.5 percent to 12 percent.
The new tax rate took effect yesterday.
While some shoppers who spoke with this newspaper said they were doing normal weekend shopping, others admitted they were trying to take advantage of the 7.5 percent rate while they still could.
Some businesses, such as The Work Centre, even held sales in the days leading up to the tax increase in an effort to entice cost conscious shoppers.
Jade Souffrant, the manager of The Work Centre, told The Tribune on Friday that the store had seen an increase in customers.
“Well the reason why we put the sale on… is to help customers save before the VAT increase,” she said.
“It was an initiative to help them out this weekend for back to school, mainly. According to today (Friday), you could say (yes), sales were a little bit more than the days before in this week.
“But I guess people are taking advantage of the sale. And there are a lot of vendors that are doing the same. A lot of sales are going on in the paper now — various organisations are having sales due to the increase on VAT coming up.”
Jeffrey Dean, 67, who was shopping at The Work Centre, said he was making more purchases before July 1.
When asked why, Mr Dean said because it allowed him to save a “couple of extra pennies.”
“I intend to bring my son in to get his uniform pants in at least by (Saturday),” he said. “So, he could save…a couple of dollars. And shoes so that we could beat the VAT.”
The Freetown constituent added that he had already visited the food store, and also had plans to purchase some cleaning supplies.
“And that will help save in the long run,” he said, noting that he was trying to avoid having to shop in July or at least for the next few weeks.
Darnita Farrington, 51, also said she was buying more ahead of the VAT increase.
A constituent of Garden Hills, Ms Farrington said she was doing so to save money, adding that she purchased both food and clothing ahead of July 1.
When asked if she felt that shopping ahead of the hike was better, Ms Farrington admitted that the increase was going to have an impact eventually, but appreciated being able to save now.
“I mean it’ll save you couple bucks, but eventually you still (are going) to be stuck with this 12 percent. But if you could save now, why not?”
While saying that she is among the numbers who are “scared of this 12 per cent,” Ms Farrington said she could “cope” with it if the increase will help the country.
“I’m concerned, but I mean if it’s an overall benefit for The Bahamas and the people, then I guess I could… cope with it and deal with it.”
Timothy Dorsett, 43, is among those who used the last few days of a 7.5 percent tax rate to purchase school necessities.
The Carmichael resident said he was “most definitely” part of the shopping rush.
“Stores are having sales…before the VAT (increase), why not? So, I (found) the money.
“For right now, it’s trying to get my kids ready for school,” he said. “As it relates to groceries, I try to do that on a weekly basis and try to find my discount (from) week to week.”
At Super Value on Mackey Street, most patrons said they were simply doing their usual shopping.
A high-level store employee declined to give his name, but noted that while tax increases have a temporary impact on grocery stores, eventually people adjust and consumers’ habits return to normal.
Andrew Turnquest, 57, said he wasn’t doing any extra shopping before the VAT increase, noting that he was “absolutely” purchasing his usual amount of groceries.
When asked if his shopping habits would change after the hike, the Fort Charlotte constituent said he would possibly buy “a bit less,” but added, “if you need something, you need it.”
A Bamboo Town constituent who wished to be identified simply as Ms Russell also said she was doing the “same amount of shopping”.
However, she said this would change after July 1.
“When the VAT (increase) comes…I’ll do less shopping,” Ms Russell said. “The less you spend, the less you pay for VAT. That’s how I see it.”
When asked if the increase will affect the amount of groceries she buys, Ms Russell said no.
“No, not at all…You have to spend it. Ain’t nothing you could do, you gotta live.”
Comments
JohnDoes says...
Leave it to ignorant Bahamians to fuss, panic and rush for all the wrong reasons in life. They will be back paying the new VAT come next week. Bahamians really need to wake up in Life.
Posted 2 July 2018, 3:34 p.m. Suggest removal
avidreader says...
Catch yourself. All Bahamians are not ignorant. I can only assume that you are speaking of and for yourself.
Posted 2 July 2018, 3:59 p.m. Suggest removal
JohnDoes says...
You just proved my point. On a scale, the amount of Ignorant Bahamians far exceeds the amount of Intelligent ones and for anything to ever positively impact the citizens of this country, this scale needs a ton load to tip.
Posted 3 July 2018, 1:19 p.m. Suggest removal
BahamaRed says...
Kml... they went to rush and spend money on things that come August will be VAT free. How ironic...
Posted 2 July 2018, 4:01 p.m. Suggest removal
licks2 says...
They are spending to "save" money. . .come August them same "poorish" who are spending the Pre-VAT money will be the greatest beneficiaries of the cuts. . .will be the ones getting more money in their pockets. . .HELP ME SOMEBODY. . .WHERE HAD I GONE WRONG IN THIS EQUATION??
Only thing I see clearly out of this "muddled crap" called pre-VAT spending is how flipping ignorant my people them are. . . spending at least one months money to save money one moth ahead. . .which money they will lose one moth ahead. . .if they spend it today to head-off paying it one month from now!! Maybe THIS IS why them politicians them can swing us so easy. . .WE DUMB BAD BAD!! I felt so damn shame for my peoples them. . . who did this crap to us. . .why are we so silly? Is it really true that if you want to hide something from us. . .PUT IT IN A BOOK. . .YA GUARANTEED THAT WE WILL NOT FIND IT!!
Posted 2 July 2018, 9:10 p.m. Suggest removal
ohdrap4 says...
not so fast.
the VAT exempt items will be assessed at 12% during the month of July, so if one buys enough of those for one month, they are saving 4.5%, even if they put on a credit card, there is still savings.
But people were really shopping for things that are not vat-exempt, as the merchant will shift their costs to those.
I bought some items with the following conditions: not vat exempt, was on sale, is non perishable.
and i got enough tune for the cat for one month.
Posted 2 July 2018, 9:25 p.m. Suggest removal
DDK says...
Isn't tuna going to be a "bread-basket" item?
Posted 3 July 2018, 1:37 p.m. Suggest removal
sheeprunner12 says...
Wonder how I can get one of those VAT12 spy jobs???????? ......... HMMMMMMM
Posted 2 July 2018, 9:37 p.m. Suggest removal
ohdrap4 says...
them spies can easily be bribed by a pack of 5lbs steak, 3 lbs shrimp and one dozen bottles of clothes softener.
Posted 2 July 2018, 9:51 p.m. Suggest removal
ashley14 says...
Why is it stupid to save money while you can?
Posted 3 July 2018, 9:27 a.m. Suggest removal
licks2 says...
The entire exemption will reduce their VAT costs. . .all things being equal. . .to less than the average 7.5%. . .so rather than their rates increasing by the 4.5%. . .their costs will become equal to the change of the deductions. . . which moves downward. So getting things that are not needed now at 7.5% before August create a loss. . .which can be gained by waiting for after the 12% rate hike in August. . .then they will be paying at a reduced rate!! So to buy now at the current 7.5% . . .all things being equal. . .create a loss in August at 12%!
Posted 3 July 2018, 12:04 p.m. Suggest removal
ashley14 says...
Crime will go up if the people can't make ends meet.
Posted 3 July 2018, 9:27 a.m. Suggest removal
licks2 says...
And crime may go down because the poorer in the country will be paying lower rates of VAT . . .ALL THINGS BEING EQUAL!!
Posted 3 July 2018, 12:07 p.m. Suggest removal
ashley14 says...
Is that what they are doing? Equaling the playing field. It looks to me that it increase the amount owed say on food, so if your poor you can afford less. Maybe instead of ground beef and chicken this week to prepare for dinner, you could have peas and rice one of the nights. Or maybe PB&J's. How's that is that Equal? Crime comes from people suffering. There isn't a light at the end of the tunnel.
Posted 3 July 2018, 1:03 p.m. Suggest removal
ashley14 says...
Or maybe you just want to disagree with me. I don't know why.
Posted 3 July 2018, 1:04 p.m. Suggest removal
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