EDITOR, The Tribune.
SOMETIMES it is by far the best for politicians to stay away from speaking on subjects. Seemingly they do not have an accurate understanding or opinion on.
A year plus with VAT, and still the average person has not a clue, how much VAT we actually pay, and what is the comparison to Customs Duty, we paid prior to VAT.
All businesses who have a turn-over of over $100,000.00, are liable to charge VAT at 7.5%.
The container ship arrives at Arawak Cay…instantly there is a 7.5% VAT charge - if the business is using a VAT operator for Customs Brokerage a further 7.5%. If they use a trucker who is a VAT operator. Oh, yes a further 7.5% - to the business warehouse and out to retail a further 7.5%.
So in the process of importing - say a can of tuna, there might not be any Customs Duty, but you are paying 3x7.5%, on the landed costs of that can of tuna or 22.5%. Many items where Customs Duty is still applicable, that multiplier is equal to the old Customs Duty average of 30-35%.
What the Consultants did not recognize is that seemingly the shipping invoices for assessment for Customs Duty and applicable VAT were or might not have been true and correct. In other words the invoices were deliberately priced below actual true purchasing value.
When the wholesaler billed out to the retailer, his price used the correct costs of the item, causing an appreciable increase in the costs of merchandise and, of course, why the estimate, original, of the total potential VAT that will be collected to increase from plus minus $680m to over $1.2 billion. You see the problem? It is all about education!
W. THOMPSON
Nassau,
June 29, 2017.
Comments
Porcupine 8 years, 7 months ago
Actually, it is not about education, it is about knowing the truth. Those who consulted us on VAT were very "educated". Those who sat in government and passed the law, were "educated". The issue is, what do you do with that education? Do you use it to cover up your participation in a corrupt, unChristian association? Or, do you use your education to help all of those in your community. I think we know the answer to this one.
Dawes 8 years, 7 months ago
It helps to understand and be educated on VAT. There is only one 7.5% charge on the amount. All those little VAT additions you talk about only amount to 7.5% of the whole item. And at no point should the company consider the VAT as a cost to them to be passed on, as they can reclaim any VAT they have paid against the VAT the customer pays them. Unless they are not VAT registered in which case it is a cost to them.
DDK 8 years, 7 months ago
Value Added Tax is just plain insidious. The 1% don't suffer, just The People. Of course they knew that when they implemented the pox.
Sign in to comment
OpenID