NASSAU, BAHAMAS — Super Value’s owner Rupert Roberts said yesterday that the “full effect” of the government’s duty reduction on a number of food items will likely be felt “within a month”, noting that by that time inventory bought at higher duty rates should be exhausted.
Speaking with Eyewitness News, Roberts said: “The price of eggs went down immediately.
“The Bird Flu caused a price increase about two months ago and now the price is coming down.
“The cost of all of the items government reduced the duty on will start to come down as merchants bring in new inventory.
“Eventually, within a month, the full effect of the duty reduction will be felt and enjoyed by consumers.”
The 2022/2023 fiscal budget contains tariff cuts for roughly three dozen food items as consumers battle with a historic rise in inflation.
Items such as cheese, lettuce, salad, beetroot, turnips, cucumbers, peas and beans, asparagus, celery, sweet peppers, hot peppers, eggplant, spinach, pumpkin, corn, beets, artichoke, yams, cauliflower, broccoli, cassava, sweet potato and all preserved vegetables, yeast and baking powder have been designated as duty-free.
According to Roberts, the duty reduction will likely equal half the increase in costs brought about by the 10 percent VAT being placed on breadbasket items.
“Within a month, items we paid high duty on will be exhausted and new inventory at the lower prices will be widely available,” he said.
“I think government chose to reduce the duty rather than touching the VAT.
“I’m not surprised by that.”
Still, Roberts said that while the duty reductions will be of great benefit to consumers, they would not make up for high inflation.
He said: “Inflation is still there. I would say that inflation’s biggest impact is on the breadbasket items.
He noted that the war between Russian and Ukraine has not only impacted fuel prices, but also other widely used products such as flour, grain and cooking oil.
Solomon’s recently issued a notice to its customers indicating that as of this week they would begin to see price decreases as a result of the customs duty rate reductions and could expect savings to be passed on as soon as they are received.
