By NICO SCAVELLA
Tribune Staff Reporter
nscavella@tribunemedia.net
PRICE Control Commission Chairman EJ Bowe said the Commission would be “looking into” the recent price hike on tickets at Galleria Cinemas that exceeds the 7.5 per cent Value Added Tax.
Last week, The Tribune reported that Galleria Cinemas posted VAT notices in its ticket windows informing customers that in compliance with legislation, prices would increase as of January 1, noting a 17.6 per cent and 11 per cent increase in (VAT-inclusive) adult and children’s ticket prices, respectively.
Yesterday, while leading a team of PCC officials in a price control inspection of Super Value stores on Robinson Road and East Street, Mr Bowe said: “Since VAT came into being, (Galleria’s prices) went up. But according to the complaint we got, the calculation does not compute, because 7.5 per cent onto what they were selling it for cannot bring it to that figure that they are selling it to the consumers for. So we’ll be checking that out as well.”
According to Galleria’s VAT notice, ticket prices were increased 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 would now pay $9.
The VAT notice read: “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.”
However, some consumers questioned why they were 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 last week, Galleria Cinemas President Chris Mortimer said: “Not at this time.”
He explained he was out of the country and would not return until early this week, but said upon his return he “may” deliver a statement.
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.
Last Tuesday, Democratic National Alliance Leader Branville McCartney issued a statement on VAT and said it would be bad for Bahamians.
He also criticised the Christie administration for not enacting the Freedom of Information Act to coincide with VAT implementation.
Comments
atwr 9 years, 3 months ago
also Price Control needs to check out the airport parking which went from 10.00 per day to 11.00 per day including VAT. That's 10%!
moncurcool 9 years, 3 months ago
Amazing that price console making the noise, but they have no control over whether those business do those prices or not. Could it be than the business just increased their overall price in the process. Maybe price control needs to ask that question first before jumping to conclusions and making a splash in the paper for show.
chairarranger 9 years, 3 months ago
There is a very high chance that the local business community, via the actions of a small number of individual business owners, retailers, and representative spokespersons, is going to come out of the whole VAT introduction process looking worse than the government. This would be extraordinary, and a huge disservice to those in the business community who have worked hard and with genuine integrity to build trust with consumers and constructive relationships with government officials (in often difficult circumstances).
asiseeit 9 years, 3 months ago
Movie tickets are not price controlled. Galleria could have put the price up to $20.00 a ticket and the morons at price control can make all the noise they want but they can do NOTHING. Stop making noise as if you are relevant and go back to your nasty office and gossip and eat and do whatever it is that useless civil servants do. Stop wasting The Bahamian peoples time, you already waste our MONEY!
The_Oracle 9 years, 3 months ago
Price control cannot control inflation, nor the overall costs of running a business. First costs increase, shipping, port fees, Customs processing fees, trucking fees, insurance costs, ground rent, fuel, utilities, and on top of all these (and more) salaries must eventualy increase also. What this Government is doing with VAT will also drive up costs. Cause and effect.
mangogirl01 9 years, 3 months ago
If this was done to give the employees a salary increase, I have no problem with it!
TalRussell 9 years, 3 months ago
Comrades we need a probe see who's deep pockets bankrolled black KKK's have balls parade around in full view officials, under white sheets and funny hats - in an attempt hijack our nations Junkanoo parade. No a damn peep from any politician on either side da House of Assembly. Money does talk.
Tune-in now only voice asking same questions - Comrade Chrissy Love is da natives talk show host live-on-air now.
www.guardiantalkradio.com
by TalRussell
GrassRoot 9 years, 3 months ago
It this Cuba, or what?
ohdrap4 9 years, 3 months ago
this man is such a colorful character, had retired years ago. but ressurections are plentiful at this time.
i feel sorry for rupert roberts. seems that price control only goes to his tores.
mind you, the eggs cost one cent more at5 solomon's, why don't they got there?
avidreader 9 years, 3 months ago
I am somewhat surprised that Rupert Roberts has not publicly complained that he appears to have been "targeted" by price control staff, very probably as a result of his strong anti-VAT stand last year. He should spend some time researching the relationship between the Chinese minority and the Malay majority in Malaysia and to a lesser extent in Indonesia, particularly in "hard economic times".
TalRussell 9 years, 3 months ago
When a pricing law amounts to being a Jackass. Comrade it would be a business owners costly and a unnecessary clerical nightmare to be required to provide such cost invoices with each and every shipment. Only in Bahamaland would you demand such nonsense from a merchant. What's so damn difficult for Chairman Bowe to request pricing details from Super Values head office to have his own clerical staff figure it all out? Okay, I know it's been claimed that the accounting of Junkanoo parades judging was outsourced and they can't add-up numbers correctly but why not give government bookkeepers a shot to see if they can add. Price eggs should be about the correct pricing, not adhering fully some government's price control bureaucracies red tape.
TalRussell 9 years, 3 months ago
by TalRussell
The_Oracle 9 years, 3 months ago
Price control is a very misleading name, in reality they control markup margins over landed costs and only on bread basket items. One importer may pay $1 a can but another pays $1.70, both can markup the same % but on different amounts. Volume purchases, different brands and suppliers, hell different freight rates can affect the final retail price, legitimately different in each store. Any greats disparity in price will soon be met with a lack of sales for the higher price, higher sales for the lower price provider. No Government hack can meddle with or change that without destroying the country. Ask a Venezuelan about price controls and the lack of toilet paper and basic necessities. Right where Mr. E.J. Bowes mentality will get you.
John 9 years, 3 months ago
What E J Bowe needs to understand is that while VAT may only be 7.5% the compliance requirements for VAT is going to put direct increase to cost of doing business and businesses will have to increase their prices. Not only that VAT in some situations is more than 7.5%. For example when Super Value brings in merchandise to sell it eill pay customs duties on the goods then it will pay VAT of 7.5 on the goods plus the cusstoms duty! This is double dipping and if merchants do not track these costs and account for them they can be selling at a loss. What Mr. BOWE should investigate is those customs brokers who are now charging consumers up to $200.00 to make up entries to clear goods off the docks. Imagine a person bringing in $1000.00 in groceries and personal items. The custom broker charges $200, duty is$300plus freight is $100 VAT is $90 then add the cost of going to Miami and all the other charges and you will realize that in most instances it is better to shop at home. The cost of travelling has become too expensive and The difference between Miami landed prices and Nassau prices is not that great. When VAT is added on it may be better for the small consumer to shop at homem
Hogfish 9 years, 3 months ago
As already said above. Movie tickets aint under price-control. If i was the owner of galleria i would tell this jackass to shut the #uck up and carry his ass. Or go to Florida to watch a movie where a ticket is already $12 but electricity cost less than half.
John 9 years, 3 months ago
Also in Miami a small popcorn is $4.75 a small drink is $3.75 hot dogs are $6.00 each. So two people going to see a movie can easily spend $50 bucks. Do they have "The Interview' on bootleg yet?
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