Mixed Reaction To VAT On Breadbasket Items

NASSAU, BAHAMAS – Grocery stores and consumers bracing for that implementation as well as price hikes due to a global shipping issue.

Kyle Walkine has the story.

It’s going to be an “interesting” adjustment for shoppers when VAT is placed back on breadbasket items, according to this store manager. 

Walking through Hadji’s Convenience Store along St. Alban’s drive, manager Frantz Watson says it will undoubtedly be a pinch in the pockets of the consumer, despite government’s plans to reduce the rate of VAT to ten percent come January. 

Watson says the impending price increase to some items due to the global shipping crisis and its trickledown effect will soon to be felt here in The Bahamas. Popular items, he says, already hard to come by. 

Major local food store chains like super value have already warned that prices are set to go up just after the christmas holidays. 

Minister of Economic Affairs Michael Halkitis has said VAT across the board with minimal exemptions is really the best system. 

George Panza is not looking forward to the VAT on breadbasket items, especially at a time when grocery stores expect to implement price increases very soon.  

Others like Dominic Stubbs say they understand it is a give and take situation, but for some families the VAT will be tough. 

And it’s the same for this shopper who says it’s a pinch you’ll feel at the cash register, but one consumer will unfortunately just have to deal with. 

In the recast budget government expects to pull in an additional 93 million dollars in revenue, 80 million of which from VAT. 

For our news, I’m Kyle Walkine.