The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

A MAJOR business in Grand Bahama is stepping up to ease the tax burden on its customers by launching a new programme called Value Added Savings.

The programme aims to offset some of the costs from the government’s newly implemented value added tax (VAT).

Don Roberts, owner of Dolly Madison Home Centre, announced on Wednesday that the company has decided to initiate a “productive approach” to assist its vast customer base by paying for VAT on all customer purchases made at the store on random days throughout the year.”

The programme started yesterday.

“We will pay the VAT for (our) customers,” Mr Roberts said.

On January 1, the government implemented VAT at a rate of 7.5 per cent on most goods and services, with few exemptions.

Mr Roberts, a successful veteran businessman in Grand Bahama, said: “We have to move forward, leaving the VAT complaining behind us and adjust to the new reality. In this regard, we are launching the Value Added Savings (VAS) programme designed to help our valued customers save some of their hard earned money.

“On random days of the year, DMHC will pay our customers’ VAT on all purchases they make at Dolly Madison. The VAS days will be announced one day prior to the promotion,” he said.

Mr Roberts said notices will appear on the store’s billboard on Queens Highway, its Facebook page, as well as on the radio and television.

“Dolly has a long history of working with the small man and we see our Value Added Tax saving days as a perfect opportunity to step up to the plate and assist our customers during these challenging times,” he said.

According to Mr Roberts, there has not been any big change in the volume of customers coming in the store since VAT has come on stream.

He reported that there is usually a slump in business in January due after the Christmas rush.

“We have not seen any change whatsoever and getting very little negative reports,” he added. “I think people are getting used to VAT, people are realising that it is a necessary step, and it is a question now of what will happen when government does collect this money; where it is going to go? We have to be positive and think it is going to go to the right places.”

Mr Roberts said business at Dolly Madison has been very good.

“In November and December we had record months, despite all complaints that there is no money; there is money in the economy, you have to have the right products at the right prices.”

Speaking from his experience, Mr Roberts said that fewer people are going off to America to shop and are now shopping at home instead.

James Rolle, an executive, said while the US government gives free tax days to school students, their VAS programme is different in that the company is actually paying VAT on the customers’ purchases.

While there have been reports that some businesses have raised prices post-VAT, Mr Roberts said they have not raised prices on any of their items in the store.

“All we have done is added the 7.5 per cent to the actual price,” he said.

Mr Roberts said they have not adjusted their prices on the shelf yet, and have put up signs that the tax is not on the items.

He explained that when customers go to the cash register, they will be able to see the selling price and the VAT tax.

Mr Robert said they are still waiting to get a definite decision from the Department of Customs regarding changes in the Customs duty rate on certain items, including major appliances.

“It has been up in the air for a while now, and we have gotten a couple of reports that were not quite accurate. We are waiting to see before we put the duties down on appliances. One of the major items on which there will be decreases are appliances, such as refrigerators, stoves and things of that nature. It is going to go down. We don’t want to do it yet and find out they have changed it again. They have changed two or three times,” he said.