By Natario McKenzie

Tribune Business Reporter

nmckenzie@tribunemedia.net

A well-know furniture and appliance retailer yesterday said duty cuts unveiled in yesterday’s budget will benefit Bahamian retailers “long term” and make them more price competitive.

Krystynia Lee-d’Arville, Furniture Plus’s vice-president of sales, marketing and organisational development, told Tribune Business that the import tariff reductions were welcome even though any savings will not be immediately felt by Bahamian households due to existing inventory already carrying higher rates.

K Peter Turnquest, deputy prime minister, unveiled $28m worth of duty reductions in his 2019/2020 budget statement. Duty on all household furniture will decrease from 45 per cent to 25 per cent with effect from July 1, while home refrigerators of 18 cubic feet or less will become duty-free. Home stoves that are 30 inches wide or smaller will also be duty free. 

Mrs d’Arville told Tribune Business: “We will be immediately running numbers on our existing inventory. We have a 40,000 square foot distribution centre where we house inventory for our three locations as well as customers on other Family Islands that purchase from us. The first thing we are doing is running our inventory on hand to confirm what that means as far as duty payments already outlayed.

“On the flip side, these are very large ticket commodity items, and every Bahamian needs a stove and a fridge to cook and keep their perishables. Everyone needs a sofa to sit on and a bed to sleep in. We have always said that these are important things the average Bahamian needs regardless of what level of income and economic background you are.

“We also recognise that Bahamians shop abroad. It’s great news to have reductions because if we can have consumers shop at home that benefits the country. We have been advocating for something like this for quite some time over the last several years of budget changes and tariff reductions,” she added.

“Furniture, appliances and electronics have not seen many reductions other than VCRs, which are really a non-existent player in the world today. We are happy for this although we recognise that it is going to impact our existing inventory and our ability to transfer that to the consumer on an immediate basis will not be possible.” 

Mrs d’Arville expressed hope that the government may provide tax credits for inventory already purchased and in stock at the old rates. “We have quite a large amount of products in inventory. Much of our inventory has already been purchased at 45 percent VAT,” she added.

Mrs d’Arville said that over the past three decades nine local furniture stores have gone out of business. “Those are all business that employed Bahamians,” she added. “We have also struggled with remaining relevant and competitive. People shop online or go to Florida. All of that is still good. I myself shop in the US and online, but there are things that we can do as a country to keep more money here.”