Inspectors Crack Down On VAT Compliance Amid Tax Cut

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NASSAU, BAHAMAS – Officials from the Price Inspectorate were making rounds today at major retailers like Cost Right, Solomons, Phoenix Supermarket, SuperValue, and other stores throughout the capital, ensuring that price tags reflect the newly reduced VAT rate.

Head of the Department of Consumer Affairs Rex Adderley says they’ve already spotted some issues.

Rex Adderley – Head of Consumer Affairs Department
“When we came in, we noticed one or two tags that were out of, they were still reflecting the 10% value and we had to point it out to them.”

Phoenix Supermarket CEO Valentino Gardiner defended the issue.

Valentino Gardiner – CEO, Phoenix Supermarket
“System-wise, you can change as much as possible, but for the pricing on the shelf, it’s going to take a while. Because all of those items you have to, you know, scrape off the price and put on new pricing, or you have to put tags in certain areas. It’s a little bit tedious, but we understand what the government is trying to do.”

Stores like Budget Meat on Faith Avenue, SuperValue, and John Chea #1 have complied with the new policy.

Mrs. Morris – Manager, John Chea #1
“As you can see, the receipt says. And for the non-food, which is still at the 10%, and the F for full, which at the 5%. So it’s clear up. The customers look at their receipt, they’ll see exactly how they’re being charged.”

The April 1 implementation was selected to allow merchants enough time to update their pricing systems. Adderley says there is a 72-page document on the Office of the Prime Minister’s website listing all the food items that qualify for the VAT cut. Officials are giving stores a grace period to have their affairs in order to avoid penalties.

Rex Adderley – Head of Consumer Affairs Department
“Make that change at the point of sales for the time being, and as they go along, they can change those prices.”