EDITOR, The Tribune.
THIS an open letter to the Acting Financial Secretary with respect to the Vat exemption for bread basket items.
I assume that the merchants are able to adjust their cash registers to 12 percent where it was previously 7.5 percent.
And unless I am shopping the wrong places, all my grocery receipts show the 7.5 percent Vat in one convenient sum, as the last item. Don’t see why thousands of items have to be re-priced.
The merchants need only reduce the price of the bread basket item by 12 percent on the shelves; and at the counter when it is added back; the net result will still be the bread basket items were Vat exempted.
The above is not rocket science or require new software just a common sense application to basic math.
If you deduct 12 cents from a $1 tin of sardine, that sardine now cost 88 cents on the shelf, if you charge Vat of 12 percent at the counter the sardine will still only cost $1.
The onus is on the honest merchants to always identify the breadbaskets items and always make the 12 percent deduction on the shelves; then the Vat charge will balance out the initial deduction.
The proof of all this is whether the sardine will still only cost the buyer $1.
Other than the 12 percent reduction for breadbasket items, the only thing the merchants really have to do is calculate 12 percent at point of sale where it was previously 7.5 percent.
EDROY DEVEAUX
Nassau,
June 28, 2018.
Comments
TheMadHatter 5 years, 9 months ago
12% of one dollar is more than 12% of 88 cents. They are not the same amount, so the add and subtract does not work that simply.
To add 12% to something you can simply multiply that something by 1.12.
In order to remove 12% from something you divide by 1.12.
$1.00 divided by 1.12 = $0.89286
or $0.893 cents.
89 cents would work (not 88)
$0.89 x 1.12 = $0.9968 which would round to $1.00
Anyway, quite simply - your plan is GREAT - just that the answer is NOT to subtract 12% from the "desired price" so that when it is added back on it will still be the desired price. INSTEAD you want to divide the desired price by 1.12
Hopefully, the merchants will consider it. Thank you.
ohdrap4 5 years, 9 months ago
the greatest shortcoming of humanity is that they do not understand percentage.
the govt would not allow this pricing method tho.
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