By ANNELIA NIXON

TRIBUNE Business Reporter

anixon@tribunemedia.net

THE Bahamas Chamber of Commerce and Employers’ Confederation (BCCEC) is urging the Department of Inland Revenue to announce this year’s Back-to-School VAT-free shopping period as early as possible so businesses have sufficient time to prepare.

Don Williams, the Chamber’s chairman, said the private sector has already reached out to the tax authorities in hopes of avoiding the last-minute announcements that have frustrated retailers in previous years. He added that warning that companies need advance notice to prepare pricing systems, inventory and promotions.

“We are trying to get more conversations with Inland Revenue because, obviously, it’s July,” Mr Williams said. “August is right around the corner. We need to know when the VAT-free shopping period is going to be. We want to know when that’s going to be rolled out.”

He added that the Chamber is also using the period to encourage Bahamians to support domestic retailers despite the growing ease of overseas and online shopping. “We’ve seen an increase in people shopping abroad specifically for clothes,” he said. “As the Chamber, we’re encouraging Bahamians to shop local.

“Yes, you’re going on family vacations, but it is us supporting the local businesses, the Mom-and-Pop stores, that is going to continue to ensure that the resources of the country remain within the country. It helps to lower the cost of living. It ensures that everyone has an opportunity to feel the level of prosperity. So we’re encouraging persons to shop local, shop local, shop local.”

Mr Williams added: “We’ve just found that Bahamians now have more access. With the rising of Amazon, it’s so much more accessible now. With our courier companies providing, you can almost get your goods now next day, depending on if you’re willing to pay the extra fees.

“Bahamians now have more opportunity to shop abroad. But we want to ensure that while they’re shopping abroad, there is quite a bit of the local businesses and the economy that still needs to feel that same boost.”

The Chamber’s appeal also reflects long-standing concerns among retailers over the timing of the Government’s VAT-free shopping announcement. Businesses have previously complained that the frequent last-minute announcement of the dates leaves insufficient time to reprogramme point-of-sale systems, update pricing and market promotions.

Mr Williams said the Chamber hopes that will change this year. “We definitely want to get ahead of it this year,” he said. “So we just reached out to Ms Shundra Strachan as late as yesterday, wondering when they would possibly announce it so that businesses have an opportunity to get ahead of it.

“Whether they need to make adjustments in pricing in their systems, whether they need to physically make some price adjustments in their stores, put out certain promotions, we want them to have the opportunity to get ahead of the curve so that everyone can take advantage of the opportunity.”

Beyond the timing of the VAT holiday, Mr Williams said retailers continue to grapple with global supply chain disruptions and higher freight costs stemming from geopolitical tensions and rising fuel prices.

He said some businesses are finding ways to offset those challenges through collaboration. “We just had our conversation with a few businesses yesterday,” he said. “A few of them got together and they collaborated and consolidated, so that they were now able to ship two 40-foot containers.”

By combining shipments, he said, businesses reduced their shipping costs sufficiently to pay for faster transportation. “Because it’s a container and not just the regular pallets, they were able to save on their normal shipping fees,” he said. “Those savings they were able to use to express ship their goods.” 

Mr Williams encouraged more businesses to pursue similar partnerships. “We’re encouraging businesses as much as possible to collaborate, consolidate and see how you can now mitigate the risks that are happening due to global unrest, the increase in fuel costs, the shipping delays, so that they have the necessary tools and supplies they need to be able to supply their customers,” he added.