BASSETERRE, St. Kitts – COMPLAINTS made by a number of consumers suggest that it seemed as though the Value Added Tax (VAT) Reduction Day would not have brought in enough profit for some business entities that signed up to participate, because they had marked-up their prices before making the 12 percent reduction.
Friday (Dec. 20) saw downtown Basseterre filled to capacity with busy bodies making their way from store to store taking advantage of the final day for the 12 percent reduction in VAT.
But, what was supposed to be a money-saving venture for all turned out to be just as, and in some instances, more costly for many.
Last year, during the VAT Reduction Days, it was said that the prices of items, especially food, were marked up but it was not seen if one was not paying attention.
But, this year, it was clearly evident in some business entities that the prices on many of the items were greatly increased.
SKNVibes spoke with a number of individuals who voiced their dissatisfaction with the end result of Friday, especially where food items were concerned.
They expressed that instead of seeing a reduction, they saw a mark-up on many food items and some articles of clothing.
The prices of regular food items such as rice, milk and sugar appeared to have remained the same while there was a hike in prices for others.
Kisha, a mother of two who tried to take advantage of the VAT Reduction Day by doing her Christmas grocery shopping, ended up disappointed by the lack of reduction seen on her receipt.
She said that she went looking to purchase, among other items, a Banquet Brown N' Serve Sausage Links which she usually purchase for $5.95 at a particular supermarket.
"Imagine my shock when I went in the store and saw that the thing now costs $9.42. I was so upset! You mean to tell me that in a matter of days the price could jump from practically $6.00 to almost $10.00? This is nonsense! I am supposed to see a reduction not a rise in price!"
Another lady in her early 20s said she went into a clothing store to "look around", as she usually do with friends, and was surprised to see that a blouse she had seen for $95 was tagged at $110 on VAT Reduction Day.
A middle-aged shopper: "It was very obvious that the prices for a number of commodities that were sold on VAT Reduction Day had risen. I personally had visited a number of supermarkets and other outlets to observe the price of some commodities days before the VAT Reduction Day. However, on that day, the prices were vastly different."
He suggested that measures be taken by the authorities so as to avoid business entities using the relief given to consumers to their advantage.
A young lady who calls herself Dede said she purchased a small Crowley Heavy Cream for $16.07 on VAT Reduction Day, only to find out from a friend who had bought a large one from the same supermarket just a few days prior for the same price.
A Private Soldier said that some business places were only hurting people in the Federation, adding that those same businesses complain when consumers shop at foreign supermarkets.
He said: "The government granted us a little tax break and these business places chose to make a profit from it by raising their prices. These are the same businesses that's going to bawl and say how the locals not patronising their businesses but running to the foreign ones. What else do they expect when they're treating us like this?"
A young man, who gave his name as Dwight, said he went shopping at a shoe store in Basseterre only to find that the specific shoe was not on the shelf. He said when he asked why the shoe was not on display, he was told by one of the managers that he should come back the following day and the shoe would be there.
Dwight said he believes the shoes were taken from the shelves so that they would not have to be sold at a discounted price.
"I had been cooping that shoe for days and all of a sudden when Friday came they run out...but they would have more the very next day? I must be stupid, so I can't put two and two together. They took the shoes off the shelves because they didn't want to give the discount on them."
Another man said he went into a store to question the price of four new tyres and was told they were over $800, but when he went back on VAT Reduction Day he was told that the same tyres were being sold for over $1 200 from which the 12 percent VAT would be removed.
Although many complained about a rise in price when they should have clearly shown a reduction, consumers still went out in their numbers and took advantage of the VAT Reduction Day.
Many consumers are however suggesting that the local authorities look into this matter and put measures in place to ensure that the business entities do not take advantage of them.
