VAT will place the power of purchasing back into the hands of the consumer!
The purchasing power of the consumer has always been the reality in most economies around the world, and in a growing economic climate like the Bahamas, it must be expected that Bahamians will get value for money upon the introduction of VAT!
Just this week at a popular grocery store here in New Providence, the food chain decided to double its prices before VAT took affect.
Some believe this idea is what has created some fear of VAT by those who oppose the plan to overhaul the tax structure. Interestingly, when cereal went up almost 80% in that big chain, in another local store not far away the price for the same box of cereal remained the same.
And what is being played out here is the fact that consumers are now shopping around, and are finding out that they can purchase the same items in some cases cheaper than what they had purchased it for in their traditional stores.
If VAT is doing anything it is now placing back in the hands of the consumer the purchasing power – where they can make sound decisions on where they purchase their goods and services.
Clearly this means those who thought they could stir a fear of VAT will only end up hurting their own businesses.