HARD DECISIONS: Some Bahamians struggle with soaring grocery prices; say they prefer when VAT was 12%

NASSAU, BAHAMAS — Scores of Bahamians continue to voice concerns over increases in grocery prices and plead with the government to take action.

Advira Taylor, 68, of Jasmine Gardens, told Eyewitness News she finds it difficult to deal with the increasing costs.

“I disagree with them (the Davis administration) putting 10 percent on breadbasket items, medications and baby foods and whatever females need to use. I’m against that,” she said.

I had to seriously budget and cut back on a lot of stuff and couldn’t waste anything.

– Advira Taylor, 68

With a look of frustration, Taylor said: “I had to seriously budget and cut back on a lot of stuff and couldn’t waste anything.”

The former Minnis administration increased value-added tax (VAT) from 7.5 percent to 12 percent in 2018, but also made some goods and services, such as breadbasket items, VAT-free.

Earlier this year, the Davis administration reduced VAT to 10 percent but implemented it across the board, including on goods and services that were previously VAT-free. It argued that doing so is more effective and beneficial.

But Taylor described the 10 percent on breadbasket items as something that will do “much more harm” than good and be even more difficult to handle.

“The breadbasket items are things you need daily,” she said.

“The 12 percent was much better because there was no VAT on breadbasket items…and medications are something that you need when you have high-blood pressure or whatever.

“So, I would prefer the 12 percent than 10 percent on the essential items because you know you could afford it.”

Minister of Economic Affairs Michael Halkitis.

She stressed that the best thing the PLP government could do is remove VAT from those items.

Looking down at the few groceries in her hands, Taylor said it is even harder now for the average person to survive.

She said the Price Control Commission must better inform consumers to prevent stores from using VAT to overcharge customers as well.

According to Economic Affairs Minister Michael Halkitis, the government is trying to meet with local wholesalers to discuss ways to alleviate the impact of inflation or an increase in prices.

Halkitis said when 90 percent of what is consumed is imported, inflation is imported as well.

Meantime, other consumers also said they are facing challenges with price increases and VAT on breadbasket items.

I ended up paying more with these breadbasket items and that’s all I buy.

– Andre Jones, 26

Andre Jones, 26, of Oakes Field, with a voice full of disdain, claimed the PLP misled the public when it promised to reduce challenges faced from the 12 percent VAT rate while in opposition.

“I ended up paying more with these breadbasket items and that’s all I buy,” he said.

“When I heard about it, I was like [expletive] and it forced me to have to budget smarter.”

Jones described 12 percent VAT as “pretty high”, but said he felt it was the better option because it only applied to items he deemed non-essential.

“I have to spend more just on the basic items,” he said.

“I believe it’s going to affect us very much, you know? It’s going to make us poorer than we already are.

“We need to let this VAT thing go.”


Written by Eyewitness News Intern Kareem Minnis

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