By LAMECH JOHNSON
Tribune Staff Reporter
ljohnson@tribunemedia.net
MOVIEGOERS may have to wait a few days before an explanation is given for a price hike on tickets at Galleria Cinemas well beyond the 7.5 per cent Value Added Tax.
Galleria Cinemas recently posted VAT notices in its ticket windows informing customers that in compliance with legislation, prices would increase as of January 1, from $8.50 to $10 for adults (an increase of 17.6 per cent) , and from $4.50 to $5 for children (an extra 11 per cent). Senior citizens will now pay $9.
However, some consumers have questioned why they are being charged $10 for an adult ticket when 7.5 per cent of $8.50 is $0.64, bringing what should be the VAT-inclusive price to $9.14.
VAT at 7.5 per cent on a children’s ticket would amount to $0.34, bringing the VAT-inclusive price to $4.84.
When asked if he would respond to the criticisms levied against the company, Galleria Cinemas’ President Chris Mortimer told The Tribune yesterday: “Not at this time.”
He explained he was out of the country and was not expected to return until early next week.
“When I return I may make a statement,” said Mr Mortimer, who is also deputy leader of the Democratic National Alliance (DNA).
In November 2013, Galleria Cinemas told its customers to expect a 21 per cent increase in ticket prices.
That increase saw ticket prices rise from $7 to $8.50 for adults and from $3 to $4.50 for children.
The company’s VAT notice reads: “Pursuant with the Valued Added Tax Act 2014, this serves as a notice to our customers that is duly registered under the Act and has been assigned the following Tax Identification Number (TIN) 100017100 – New Providence and 100096026 – Freeport.
“As mandated by law, the Tax Identification Numbers must be displayed on all invoices, bills, and receipts remitted by a VAT registrant. The provision of a VAT registrants’ TIN will permit Galleria Cinemas Ltd to include the same on all bills and invoices. Further regulation calls for all pricing to be VAT inclusive. Accordingly, as of January 1, 2015, VAT inclusive tickets will be as follows: Adults $10, Child $5, and Seniors $9.”
“The management of Galleria Cinemas Ltd thanks you for co-operation as we begin our compliance with the VAT legislation.”
On Tuesday, DNA Leader Branville McCartney issued a statement on VAT and said it will be bad for Bahamians.
“Already struggling families must now brace themselves for additional cost of living increases and business owners who had been planning expansions and new hires have opted to shelve those plans as they wait to see what effect the new regime will have on the economy,” he said.
“The new tax regime threatens to completely and indefinitely alter the economic landscape of the country, and not for the better.”
Mr McCartney also criticised the Christie administration for not enacting the Freedom of Information Act to coincide with VAT implementation. “Freedom of Information was one of several recommendations made by the government’s own VAT consultants who highlighted the need for such laws to exist in a VAT environment, specifically as a means of making the process as transparent as possible,” he said.
Comments
Girly 9 years, 3 months ago
Well,no movies for me and my family for a long,long time.This is not an essential service. My family and I can watch TV at home .Better yet most of the movies coming out can be bought on DVD.
Andrewharris 9 years, 3 months ago
You can watch the movie online for free a month later (DVD quality). I only go to the movies for the big block busters. But it is $10 and $12 in the US. The consession counter is outrageous however
sansoucireader 9 years, 3 months ago
True! Our family of four were planning on a rare afternoon out to see a movie that we could all see, but no. Will wait until it plays shows on Cable Bahamas for a $5 fee. Tickets expensive, lousy atmosphere, ugh. We'll be rediscovering board games, jigsaw puzzles, making our own stove-top popcorn and just talking with time together.
TalRussell 9 years, 3 months ago
by TalRussell
Cobalt 9 years, 3 months ago
This is just a sign of things to come!! In the wake of VAT, business owners have now been given an excuse to price-gouge Bahamian consumers! As a result, Bahamians are about to witness price hikes that will far exceed the 7.5 tax increase!! The Bahamian people voted in the PLP government hoping that they would alleviate the economic burden placed on their backs. Instead.... the PLP imposed another unprecedented tax that will be certain to break the backs of everyday Bahamian consumers!
All yinna stupid Bahamians who was paradin up an down Nassau in yinna gold an blue shirt; nah ya gettin just what ya deserve!! Yinna let Perry dem rile ya up wit all kinna loud music, lies, an false promise!! Nah he put new tax on y'all!! Das good fa y'all!!! Yinna Bahamians too damn stupid!!!
Emac 9 years, 3 months ago
Yep! The majority of Bahamians deserve this government. It's gonna be the same ignorant bunch who jump up n down all over the streets during election, who will be hit he hardest.
Alex_Charles 9 years, 3 months ago
You are absolutely correct.
B_I_D___ 9 years, 3 months ago
If they have not increased their prices in a couple years, then fair enough, lots of increased taxes and costs have come into play BEFORE VAT...thanks to our government that promised no new taxes...HA!! Now...expect fully that even those businesses who cannot charge VAT because they are not registered or do not qualify, to fully up their charges. Their landlords and everyone else will still be charging them VAT, so their cost of doing business just increased...so boom...they gonna pass that on to you.
jackbnimble 9 years, 3 months ago
Business owners are using VAT to financially rape their customers. Even if they have to pay VAT on utilities so do their customers. And what recourse do we have? We are not getting a dime of our money back. At least the business owners can apply for a refund. It reeks of greed and nastiness! Boycott Bahamas? No!. Boycott such businesses. If the product or service is not essential, do without or find alternatives. I will be going to potters cay dock for my fruits and vegetables (not super value) and watching my movies online (not galleria)!!
B_I_D___ 9 years, 3 months ago
Boycott the businesses? We did not impose this tax...it's narrow minded people like you that voted these fools in that brought this tax upon us...the businesses are now the governments tax collectors.
jackbnimble 9 years, 3 months ago
Oh yes I will be boycotting. That's my right as a consumer. You go ahead and pay your VAT and theirs! What you're gonna do when the rate goes up idiot and they take the price to $15 for a ticket? Just go ahead and keep paying because its just so fair..... fool.
And by the way big assumption that I voted the present idiots in...... A typical.
Greentea 9 years, 3 months ago
Stop the foolish talk. We cannot expect the government to pay for this and pay for that but not want to pay our share of the burden- people=government. If the PLP didn't implement VAT the FNMs would have had to. Elected officials shouldn't be a allowed to borrow another cent, businesses should not price gouge the consumer and the consumers should be more concerned about insisting on government accountability and transparency in budget concerns and expenditures in the face of VAT. We cannot continue as we have been, wanting goods and services and expecting the government to do magic tricks to find the money to prop up the economy. they don't know any tricks. the only thing they know is to borrow- and borrowing adds to debt burden and excessive depth burden will devalue our dollar. That is bad enough but we cannot allow the government to fritter away the public purse and cloak corruption.
chairarranger 9 years, 3 months ago
Sensible, rational comments here. Even the VAT expert consultants made it absolutely clear that freedom of information and fiscal responsibility acts were essential components of a VAT implementation. They advised on enacting both first, before rolling out the tax. This is where public pressure must now be intensely applied.
ThisIsOurs 9 years, 3 months ago
Agreed. A friend who's much more knowledgeable about financial matters than I has been telling me for some time that we are in SERIOUS trouble and some tax reform was needed. My fear is that the government is giving no signs that they have any idea how to handle all of this new money. The deficit was reported to have grown tremendously in the first quarter of last year. 9 million on Carnival with no accounting as yet for how the money is being spent. 50 million on BAMSI only to have to rent an airplane hanger to hold classes for FIFTY students, 1 million per student. No indication of the rental costs or how much additional money is needed to complete the project. 5 million in back taxes from the webshops, how much of that money is left or has it all been already paid out and for what? That would give us a serious indication of how VAT money will be used..
Cobalt 9 years, 3 months ago
That's exactly my point!! The whole reason that VAT is needed and now being implemented is because of the mismanagement and misappropriation of funds by both governments!! VAT will not have the desired affective of lowering our national debt nor decreasing our financial deficit simply because their is no accountability, transparency, honesty, competency, prudency, nor management skills within our government!! Especially when it comes to money!!! Simply put..... the government is just "shaking down" Bahamian citizens the same way they've "shook down" foreign investors, and the same way they are "shaking down" numbers bosses!! They steal, waste money, and mismanaged funds!! Then when they realize that there's no money left..... their only solution is to attempt to squeeze more money out of their citizens!! Decade after decade, they produce no solutions on how to spur the economy!!! Their only resolve is to increase taxes on already struggling Bahamians!!! You really think that these bunch of bungling, lying, stealing, idiots within the PLP are capable of establishing the desired financial affects of VAT and circulating it back into the economy??? Please!! Give me a break!! All there are doing is creating another piggy-bank to rob!! Just like they did the treasury!! If I didn't have my morals in tact, I would have been a politician!! Simply because Bahamian people are the easiest set of people to rob!! Y'all is some FOOLS!!!
PS.... Not you ThisisOurs
ohdrap4 9 years, 3 months ago
this increase will have no impact on my cost of living.
i have not been to a movie theater since 1995, so that is 20 years.
that is when i got cable bahamas, i cut movies and movie rentals.
nowadays all is on you tube.
akbar 9 years, 3 months ago
What really interesting to this story is that Chris Mortimer president of Galleria Cinemas, deputy leader of the DNA say that he MAY make a statement when he comes back. He looking to one day run the country and practicing price gouging. Can't be serious. These businessmen in this country too spoil. They are just like these government workers who believe they have some entitlement to break the backs of the Bahamian people. They don't have a slice of creativity or innovation in their DNA just using politics and thiefin to increase their profits. The lot of them should be hung in Rawson Square. Mr. Mortimer appears that he practicing tiefin now what would happen if we vote him in?
akbar 9 years, 3 months ago
A businessman accuse of price gouging and who wants to keep his reputation intact would address this matter immediately. And why everyone excuse is that they "off the island" what we still living in the 1800's with telegraph,wire and ting hey or he in Jabim somewhere where they still using pony express. In this day and age of instant communication being "off the island" is no longer an excuse. He right here bullskating thinking of some lies to tell the people.
akbar 9 years, 3 months ago
VAT putting us in trouble! Listen ,we been in trouble from 1967 the day we were sold on the fact that leaders we elect with their short term vision could take us some where.
DEDDIE 9 years, 3 months ago
All VAT does is give more money to politician who have very little money management skills.
jackbnimble 9 years, 3 months ago
They should have kept VAT off the utilities. Even the mom and pop stores are passing the costs on the consumer. In one day, the whole Bahamas has gone crazy because we have jacka$$es running our Government.
Hogfish 9 years, 3 months ago
It has cost business THOUSANDS of dollars just to implement the systems (pricing, accounting, ticketing, etc) just so they become the govts bitch and tax collectors. This is NOT money they are getting back.
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