The Tribune

By JADE RUSSELL

Tribune Staff Reporter

jrussell@tribunemedia.net

MANY shoppers reported seeing little to no savings at the checkout as the government’s VAT removal on unprepared grocery items took effect yesterday.

The policy, which reduces VAT from five percent to zero, is part of the Davis administration’s effort to ease the cost of living. Early reactions from customers across several food stores in New Providence suggest the impact may be uneven, with concerns about pricing, transparency and how quickly the change is reflected on shelves.

At Fresh Market in Harbour Bay, Ortland Bodie Jr said that while the VAT cut was welcomed in principle, he did not see any meaningful price changes.

“VAT has gone down, but it seem like the prices ain't going down,” he said. “Now, you save me a couple cents on the VAT, which is appreciated. But the basic things?”

He also questioned whether the policy was being applied consistently across all retailers, particularly smaller stores.

“The smaller mom and pops, they ain't sophisticated like that,” he said.

Similar concerns were raised at Xtra Value in Oakes Field, where executive chef Noel Claude said his total remained largely unchanged despite the policy shift.

“I honestly feel like certain things are overpriced,” he said, expressing scepticism about whether all retailers would pass on the benefit.

“I believe sometimes people do inflate it so they could get something at the end of the day too,” he said. “Because the more they make, the better life is for them, and the sad thing is, it's the consumer that suffers.”

At the same location, Lisa Williams said she saw no noticeable difference at the register.

“I see no change in nothing,” she said. “I remember when I could have gone in the food store with $50 and come out with bags and have change. I'm talking about 40 years ago. Even though under the FNM things were little tight,you could still see a difference.”

She said she believes some stores may be raising prices to offset the VAT removal and pointed to broader strains from rising costs, including gas and rent.

While some shoppers were critical, others reported modest savings.

At Super Value on Nassau Street, Diane Jones said she saved about $25 on her grocery bill, noting that even small reductions can help as households manage rising costs.

Not all customers at that location shared the same experience. Tashantae Gibson said she encountered higher-than-expected prices, particularly on ground beef, and was unaware of the VAT change before arriving.

“When I went inside just now, I was looking for ground beef,” she said. “Ground beef usually range in price from $7 to $9. All the ground beef was like $10-$15.”

Another shopper, who declined to be named, also said some items appeared to have increased in price.

Even among those who supported the policy, there were concerns that external factors could limit its impact. One shopper said rising fuel costs and other global pressures could continue to push prices higher, reducing any benefit from the VAT cut.

The VAT elimination took effect on April 1 as part of the government’s effort to reduce the cost of living.

Economic Affairs Minister Michael Halkitis has said the measure will remain in place as long as the Progressive Liberal Party is in office, adding that the government can absorb the estimated $15m revenue loss due to economic growth.

Concerns about implementation had surfaced before the rollout. Retailers warned that updating prices across tens of thousands of items would take time, even if checkout systems reflected VAT-free pricing immediately.