BARBADIANS?can shop tiLl they drop at several businesses this Christmas season without paying the 2.5 per cent Value Added Tax (VAT) increase announced in the November 22 Budget.
Some businesses announced yesterday they would delay adding on the VAT?increase for December, the biggest shopping month of the year.
Minister of Finance Chris Sinckler raised the VAT from 15 per cent to 17.5 per cent, effective yesterday, but major businesses such as Courts Barbados Ltd, Cave Shepherd, DaCosta Mannings and others have said they would absorb the hike on behalf of customers for December.
At Cave Shepherd, Barbados’ lone department store, management announced at a Press conference they would offer their customers a special Christmas gift in the form of no increases on their purchases.
Area retail manager Beverley Belgrave said customers shopping at all branches of Cave Shepherd, Colombian Emeralds International, Harrison’s, Pages and Total Sports would not have to pay the additional VAT?increase for the entire month.
“The business will be absorbing the VAT increase, which naturally will have an impact on our projected revenue,” she said.
“However, we feel it is a priority to reward our valued customers for their continuous support, particularly when From Page 1. most have already budgeted for their Christmas purchases.”
Hugh Durant, the company’s corporate communications manager, said that while it would be difficult for the company to say how much money in VAT?it expected to pay on behalf of the customer, it had been doing extremely well.
“Sales have been [going] very well throughout the year,” he stated, adding that Cave Shepherd had still hired additional staff for the busy Christmas season.
The company said that on top of absorbing the VAT,?it would offer customers additional discounts and incentives.
Durant said the company was hoping to have a good tourist season from January to April – usually slow shopping months locally.
He added that even with the prolonged recession, the company did not anticipate having to take any drastic measures such as laying off staff.
Courts Barbados Ltd announced a VAT?ease and price freeze for customers until December 15.
Managing director Trisha Tannis told the DAILY?NATION:?“Many of our customers would have been planning all year to make purchases for Christmas and we are confident that they would respond to our initiative to absorb the VAT increase on their behalf.
“Courts is very focused on the needs of its customer,” she added.
“We extended this benefit to our shoppers because we felt it necessary to offer some measure of economic relief at this time . . . .
“Since our initiative has been launched, several other retailers have followed our example – which only benefits consumers in Barbados as a whole. We are therefore proud to be the pioneers of this initiative.”
Other businesses which are keeping their prices at 15 per cent VAT?for December include H&B Hardware and D.E. Computers Ltd.
Andy Armstrong, president of the Barbados Chamber of Commerce, said many businesses had decided to pay the increased VAT?on behalf of the customer not only as a means of luring them at this busy time, but because it would have been “physically impossible” to change all the prices by yesterday.
“The law requires that the price change be reflected on all of the items on the shelves,” he said. “Some businesses did not have time to include the VAT.
“It would have been physically impossible over a 24-hour period.”
Armstrong noted that prices would also have to be adjusted on some items as a result of the removal of the Environmental Levy.
He stated that some businesses might lose money absorbing the VAT but stressed that the measure was only temporary.
