By KHRISNA RUSSELL
Tribune Chief Reporter
krussell@tribunemedia.net
SUPER Value owner Rupert Roberts said while he supports the Progressive Liberal Party’s pre-election proposal to increase the minimum wage, he was left confused by the party’s value added tax plans.
Mr Roberts told The Tribune yesterday he already pays his workers above the current minimum wage of $210. He believes all business owners should support an increase to $250, insisting this would lead to increased spending in the economy.
However, he said the PLP needs to clarify its VAT plans, saying its announcement is “frightening the hell out of voters”.
PLP leaders said Sunday if successful in the next general election they will reduce value added tax to ten percent for one year after which the rate would be reassessed. The move is part of an economic plan that involves supporting a minimum wage increase, significantly expanding social assistance in the country and reducing the cost of energy by 30 percent.
Although PLP Deputy Leader Chester Cooper said VAT will be reduced to 10 percent “across the board,” it is not clear if the party plans to remove VAT exemptions from breadbasket and other items. The party has traditionally advocated for maintaining as few exemptions as possible so as to keep the rate low and broad.
“What do they intend to do with VAT?” asked Mr Roberts. “Do they intend to leave VAT as it relates to breadbasket items the same way it is, or are they going to put 10 percent on all groceries? It’s frightening the hell out of the voters.”
Mr Roberts said he supports minimum wage workers receiving more money.
“I don’t have a problem with that because that’s what ours is now, so we don’t have a problem with that. The higher the minimum wage, the more they get the more (and) they have to spend on food,” he said.
“So, that will increase our sales and the business community wherever they can, they should support because that will increase everybody’s sales and, of course, nobody could live on less than $250. Very few people make $250. They can’t live.”
Asked if he thought the minimum wage increase should be more than the PLP’s proposed $250, Mr Roberts said: “No, I think that should be left up to the private sector to pay for what they’re worth.”
On Sunday, Mr Cooper said the PLP would recommend to the National Tripartite Council that the minimum wage be increased to $250 per week in the private sector.
“Our goal is to phase in a liveable wage,” he said at the time, “so that everyone who works is able to live with dignity and in a way that is acceptable in a modern Bahamas.”
Asked about the consequences of increasing the minimum wage at a time when businesses are reeling from the COVID-19 pandemic, Mr Cooper said PLP officials have analysed the matter.
“We looked at what happened when the previous PLP administration increased the minimum wage by 40 percent,” he said. “We are comfortable that what will happen as a result is small businesses will have more money, the economy will grow, there is more money in circulation, the government will in fact receive some taxes back as a result of more money in circulation, (and there will be) more money in spending by the persons with $250. We are committed to a liveable wage because we believe that every Bahamian ought to be able to live in dignity.
“We don’t just believe that it is good financial modelling, we believe it’s the right thing to do.”
Comments
xtreme2x 3 years, 1 month ago
Why don't This company take the lead and give all workers who is on the minimum wage line, a increase to $250.00. In stead of giving LIP SERVICE.
joeblow 3 years, 1 month ago
... because he knows a minimum wage increase will not cause a minimum increase in productivity or efficiency nor will it cause a minimum decrease in pilferage!
John 3 years, 1 month ago
Rupert Roberts is ‘ball busting.’ Notice he says he already pays his workers the $210 minimum wage but not the $250 wage he proposes. He knows this will be suicide for many of his smaller competitors and Roberts is basically ‘good eying’ the government to destroy his competition. Think of a mom and pop shop... some that doesn’t even turn over $250 a day. They may not have any employees, but If Roberts forces them to close, then not only does he inherit their customers, but he then has more leeway to increase his prices.. AND AS For VAT reduction if only temporary.. this is dangerous. A serious, caring government would seek to eliminate customs duties completely as was the intention when vat was introduced, even if it requires increasing vat to 15%. A long term reduction/elimination in customs duties WILL NOT lead to a reduction in government revenue. Consumers will still have to spend the savings they realize from the reduction in taxes so not only will the reduction in taxes lead to an increase in consumer spending, but a corresponding INCREASE in government revenue. And that is why most governments reduce taxes when they want to stimulate the economy. So instead of a consumer paying $25 tax on $100 groceries in Super Value, they will only be paying $15 tax on the same goods. But they now have an additional $10 to spend in Super Value and the government will get an additional $1.50 when they spend. And Super Value can now increase its staff salaries, reduce its prices (because of lower taxes) or do a combination of other things because it has more working capital. More money remains circulating in the economy and so there’s the potential for economic growth.
thephoenix562 3 years, 1 month ago
Vat was never intended to eliminate customs duties. Every country has customs duties.Vat was intended to reduce customs duties as part of our efforts to join the WTO.
John 3 years, 1 month ago
Obviously you are totally misinformed and spreading misinformation again. But that is you, dude.
ohdrap4 3 years, 1 month ago
Don't get angry when you are wrong.
Where the customs duties were reduced, Vat made up the difference. Used to be 35%, now it is 20% plus 12% and vat on duty, working out to 34.4%.
What Vat should have eliminated was fees, like stamp duty on you check, now we pay stamp duty plus vat on stamp duty.
What is really ridiculous are the shipping costs, and no one talks about that. Customs broker make a pretty good penny.
John 3 years, 1 month ago
Did you attend any of the VAT seminars or training sessions? Any ? Did you hear the address from Customs Officer Scriven, orfrom John Rolle who is now Controller of the Central Bank? Yet you come here in total ignorance, pretending to be the authority. A wolf in sheep’s clothes. The facts are easily verifiable dude.
FrustratedBusinessman 3 years, 1 month ago
I see this one both ways.
$250 is not enough to live off of in the Bahamas, not in Nassau at least. Rent alone, even in the worst parts, is more than likely going to be over 50% of that. Factor in crazy COL compared to even the most expensive counties in Florida, and you are not going to be able to live on your own without prostituting yourself/selling drugs like so many of our young men and women are doing.
At the same time, many Bahamians want a 500 a week salary when they don't even have 250 a week in qualifications. You would be surprised how many bank tellers cannot even calculate compound interest properly working in a financial industry, or just the general trash tier customer service that most Bahamian businesses have in general. Can I call BPL/Bahamasair/your local business and get an answer? Probably not to be honest. Am I going to pay employees a high salary when they bring absolutely nothing to my company?
This is a two way street that requires understanding from both parties.
Another issue too is that too many Bahamians want big money for unskilled labour. Nobody is going to pay you a high amount when they pick up a random Joe off the street to do your job. Most Bahamians in general just have a very poor understanding of economics and how labour markets work as well.
John 3 years, 1 month ago
When you compare the craftsmanship at Atlantis to Bah Mar and to The Pointe and even compare the work at Albany, Bahamians have skill and craftsmanship. It is only those foreigners who come here and try to undersell Bahamians. Even the tourist products in this country are underpriced. And it is all based on racism. The US State Department probably issues more travel advisories against The Bahamas than it does against any other country that has a ‘friendly nation’ status. Even most Americans visiting this country cannot understand why. We say we can’t survive without the US, But Florida merchants say they have never had it worse, ‘since the Bahamians stop coming.’
bahamianson 3 years, 1 month ago
Two weeks ago the rotesserie chicken was $6.72, today the same chicken is $8.95!!!! Super valu is too expensive. If they can go down on their prices , then people could afford to eat.
Sign in to comment
Or login with:
OpenID