By TANEKA THOMPSON
Tribune News Editor
tmthompson@tribunemedia.net
THE Value Added Tax Compliance Unit will today investigate why Super Value locations were not charging the new tax that came into effect yesterday, Minister of State for Finance Michael Halkitis said.
Customers who shopped in Super Value stores, which operated under shorter work hours for the New Year’s Day holiday, told The Tribune the tax was not added to their bills.
One woman who bought groceries at the Cable Beach location said a manager told her the tax would be in place at the store today, although it was mandated by law for collections to begin yesterday.
When contacted about this, Mr Halkitis said he had heard similar reports. He said the VAT Compliance Unit was dispatched yesterday to investigate but when they arrived at Super Value, the supermarket chain had already closed it doors.
Mr Halkitis did not say what penalty, if any, the business would face for not being in compliance yesterday.
He said he had to ascertain the facts first. VAT is charged at a rate of 7.5 per cent on most goods and services, with few exemptions.
Rupert Roberts, Super Value’s owner, blamed the lack of charging on technical problems which resulted in the day’s first consumers being charged 10 per cent – not the legal 7.5 per cent. He said Super Value, and its Quality Supermarkets affiliate, had been left with too little time to get their IT systems ready across all stores after being overwhelmed by a New Year’s Eve pre-VAT buying rush.
However, Mr Roberts – a strong opponent of the new tax – said the issues had been resolved and the supermarket chain would be ready to levy the tax today.
In 2013, his company appealed to Bahamians to write to their political representatives to “say no to VAT.” He has maintained that the tax is not good for the country or businesses.
In October he told Tribune Business that VAT-inclusive pricing will create “unnecessary work” for Price Control as well as the retail industry. “We could change night into day easier than this,” he said at the time. “The best thing the government can do is amend the law to get around inclusive pricing. It’s just a simple exercise to have it on the tape.”
He added: “If merchants are going to collect VAT for the government, the government should make it as simple as possible for the public and merchants, allowing them to do it efficiently, easily and inexpensively.”
According to the VAT Regulations 2014, there is a fine of up to $50,000 or a prison term of up to two years for “wilfully” evading VAT; improper collection and advertisement of VAT; impeding the comptroller or a VAT officer in the administration of the VAT Act or for failure to comply with a requirement of confidentiality.
According to the regulations, someone can be fined $1,000 for each false statement on VAT. Additionally, VAT registrants who violate VAT-inclusive pricing could face as much as $100,000 in fines, up to a year in prison, or both.
Comments
digimagination 9 years, 3 months ago
Yea right! And they still haven't been able to collect all the RPT in arrears despite a somewhat pathetic 'amnesty'!
Observer 9 years, 3 months ago
Had Rupert Roberts put emphasis on the inevitable pending change his company would have been ready on day #1.
positiveinput 9 years, 3 months ago
In the United States, at the end of a term the citizens file for their tax return. However we as Bahamians when we shop their we pay tax on the products we purchase, but are not able to get a tax return at the end of a given period. Now after paying this tax - with no return we have another tax we must pay, again with no return. Many people go to the store with just sufficient to purchase the necessities their household needs. Now after scrapping to do this they need to further scrap to purchase what they are scrapping for. Didn't the Government just legalize the number houses in an attempt to obtain revenue. By doing that they already have forces certain establishments to close their doors resulting in loss of jobs, so homes are now placing their financial obligations on one (in some cases 2) less income. Now comes the good thinking of the Government to pay a mandatory increased bill consumers are already struggling to pay.
positiveinput 9 years, 3 months ago
This VAT foolishness is just as greedy as a bank selling a repo home/car. If a person looses their home due to lack of payment, to hell with how much they owed, that bank would get that home appraised and sell it over for more than what they was owed. Let that second person loose that same home, the same process is repeated. How much time must a bank get pay for one piece of land. Now here VAT is introduce to our good Bahamaland. Here we are purchasing new products (from abroad) at its suggest retail price, we're paying the shipping and duty to import our goods, put still the Governments comes with their big greedy hands back in the consumers pocket. Gees not to mention there is no increase in jobs nor existing salaries.
Andrewharris 9 years, 3 months ago
Get over it. It is here. In a less than year you will have forgotten this whole issue. For every $100. spent you pay $7.50 in VAT. So eat one less conch snack a week, one less 3 piece KFC snack. Lets move on.
DEDDIE 9 years, 3 months ago
Simple arithmetic. How about this.I make 12000 per annum. I am already struggling. I spend all the income I take in. $ 12000 at 7.5% is $900 per annum. Almost a full months income I have to now find.
B_I_D___ 9 years, 3 months ago
This Super Value glitch is a non-issue...government just blowing smoke...it was day 1, there was a problem with the system, they backed it off...he is still going to pay the tax even though it did not get charged to the customer. Calm yourselves people, there are LOTS of 'glitches' going to be happening over the next couple weeks.
TheMadHatter 9 years, 3 months ago
Don't worry, the delivery room at PMH is VAT free. The baby making will continue in full force.
TheMadHatter
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