The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Deputy Prime Minister yesterday described the transition to 12 percent VAT as "so far, so good", hinting that further "adjustments" will be made to aid specific industries.

Speaking ahead of yesterday's Cabinet meeting, KP Turnquest, pictured, said: "So far the experience seems to have been going smoothly, though some hiccups is to be expected with any change. By and large we are fairly pleased. I note the story in the papers with respect to one of our major retailers, and how he has been able to accommodate the adjustment with relative success.

"There are others that have more long-term implications, and those we have given some consideration to, such as the tourism sector, the insurance sector and contractors who have longer-term contracts. We are making some adjustments to accommodate those issues, but so far so good in terms of the transition."

Mr Turnquest added: "We are working out some issues with Customs. I am learning that there may be some confusion with respect to the tariff. We are working that out to ensure everyone is on the same page with respect to that. Hopefully that will all be resolved in the next day or two, and we can go forward smoothly."

He revealed that he was made aware of one reported case of price gouging, but suggested it did not appear to be intentional. "I was aware of one circumstance that had been reported. The calculation was correct, but the information on the receipt was incorrect and so that was resolved as I understand it. At this point we are not aware of any issues," Mr Turnquest said.

The VAT rate was increased from 7.5 per cent to 12 per cent on July 1.