0

‘Considerable’ food price falls from duty reductions

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Consumers should see the cost of various food and beverage items “go down considerably” after the Government yesterday outlined numerous duty reductions in the 2017-2018 Budget.

Super Value’s owner, Rupert Roberts, though, expressed concern that the proposed 20 percentage point duty reduction on bathroom tissue would make it “difficult” for the supermarket chain’s own brand to compete.

As part of its Budget measures, the Government moved to make milk, mixtures of fruits and nuts, yoghurt, salmon fillet, shrimp and prawns, pastas, canned and/or preserved vegetables, juices, jams, fruit jellies and marmalades duty-free.

Duty on ice cream is bring reduced from 30 per cent to 20 per cent, along with the duty on bread, cakes, pastries and chips. Toilet tissue is going from 45 to 25 per cent.

Mr Roberts told Tribune Business: “All of this going to be a big part in reducing the cost of living. That’s what we are trying to do. We are trying to put food on the table at a best possible price. and shelf prices are going to go down considerably with these reductions.”

He added: “Some people will be affected by the duty reductions on juice, as we are going to be with the toilet paper. The duty had been set at the current rate to protect the local industry. The duty drop on the toilet paper is certainly going to make it difficult for us to compete because we produce our own brand.”

Mr Roberts said 14 workers are employed at Super Value’s bathroom tissue/towel manufacturing facility.

“We may have to go back at them and see if we can fix that,” he added of the Government. “We have to check that out. If the idea is to reduce the cost of living, they should have also looked at eggs because we don’t produce enough locally and the consumer is being penalised with the duty on eggs.”

Mr Roberts urged the Government to move towards lowering the duty on more healthy food options. “It seems as though we are moving towards lowering the prices on unhealthy food, and it’s certainly going to create a problem for Dr Sands and what they want to do with NHI,” he said.

“We should reduce the duty on healthy stuff and put the high tariff on the unhealthy stuff. We’re doing it the other way around and it has to be corrected some day. I guess we can’t get everything right all at once, but as time goes on we’ll see what happens.”

Comments

OMG 6 years, 10 months ago

Only works if prices are monitored. Here on Family islands prices never go down and any savings on transportation costs etc just add to the merchants bottom line. We need price control inspectors on the islands who cannot be bought off.

0

ohdrap4 6 years, 10 months ago

the prices onthe family islands will always be higher than nassau because of extra transportation, lower volume imports and less competition.

right now in abaco, following a year where the largest supermarket has just hogged and hogged, the cheaper competitor is significantly expanding the store because of increased sales.

0

Socrates 6 years, 10 months ago

i have to admit i'm not the sharpest tool in the shed but while the debt rises and we borrow more, we simultaneously cut gov't revenue through tax reductions... thats like applying brakes and pressing the gas at the same time.. u want to ho r stop? with the cheaper ice cream, pastries and chips, how will govt pay for the medicine for all the heart surgery?

0

ohdrap4 6 years, 10 months ago

there is not too much duty to slash on food. meats and fresh fruits are already duty free.

they just add more items one by one.

Rupert roberst should use his opaper plants to make brown paper bags for his customers to carry groceries.

0

proudloudandfnm 6 years, 10 months ago

Goid moves. Total duty elimination must be the next step...

0

Sign in to comment