BASSETERRE, St. Kitts – AS one Vat Day goes another is quickly approaching and businesses are preparing for an influx of shoppers who were unable to capitalise on the government’s initiative.
This was revealed by managers of various businesses that this publication spoke with yesterday (Dec. 10).
It was explained that the first day (Dec. 5) saw a small turnout of shoppers partly due to the time of the month that was allotted for this initiative.
The managers further explained that their customers could not cash in on the bargains because the VAT Day was one day away from the official pay date.
Manager of RAM'S Supermarket on the Bay Road, Sajan Khiani explained that his company is one that caters largely for the salaried workers and because of that particular time of the month sales day was slow.
He noted that they expect there would be a rush to capitalise on the opportunity when the second VAT Day comes around.
“The response was decent but I expect the next VAT Day to be better, because the salary people will get their salary and so forth,” he said.
Khiani noted that compared to last year’s VAT Day, the volume of traffic in their isles was very slow but was as busy as their regular Friday peak time.
Meanwhile, over at Value Mart IGA, Assistant Manager Carmin Browne echoed similar sentiments.
“As you know, VAT Day is close to payday but is also close to the Christmas season and they need to get as much as they would want, and so you would not have to stress as much as on that day,” she added.
To this end, Browne said that such a drop in the Value Added Tax on commodities would be a treat for persons, since it would mean more goods could be bought.
She also highlighted that Value Mart is always prepared for such days all year round, adding that the supermarket closes when the last customer leaves, which might be beyond the regular closing hours.
SKNVibes spoke with some citizens of St Kitts, among whom some expressed disappointment at the number of days in which the reduced VAT is being held. They believe that “it should not be on or two days, but many more”.
“Vat that is taken off is added to something else and so, inevitably, I will be paying double for something else, because the government doesn’t lose and the businesses don’t lose,” an individual said on condition of anonymity.
Another individual opined that some of the businesses need to explain to customers how they are calculating the VAT to be taken off, as in the eyes of some people they are still paying a lot.
“It is only he who feels it knows it and those that don’t feel it will never know it,” she said.
One vendor in downtown Basseterre explained that due to her work she could not be able to make use of the VAT Day, stressing that “if it was spread out two or more days, then yes I would have been able to grab a few stuff”.
“It’s working for one or two days and then Vat is on for 365 days. How good is that for the poorer class?” she asked.
VAT Day is usually the day when the Federal Government lowers the Value Added Tax on certain consumer items. This year, it was announced on November 29 that VAT would be reduced from 17 percent to five percent on December 5 and 19 only.
Kittians and Nevisians have over the years cried foul that the current 17 percent Value Added Tax is too high when compared with their real wage.
EDITOR-IN-CHIEF’S NOTE: Prime Minister the Rt. Hon. Dr. Denzil Douglas today (Dec. 10), during his Budget Presentation, said that the next VAT Day would no longer be on Thursday (Dec. 19) but on the following day (Dec. 20).
