It is yet to be determined whether the 15 per cent Value Added Tax (VAT) will be removed from biscuits and wafers, chairman of the Food Distribution Association Marc Mouttet said yesterday. He said because it was never Government's intention to remove VAT from confectionery, there were some biscuits and wafers which contained chocolate.
"It was never government's intention to remove VAT from luxury items which include chocolates and confectionery. There are some items in other categories that contain chocolate and as a result there is some ambiguity of how to treat with these items, meaning whether or not VAT should be removed," Mouttet said.
It was also still to be decided whether VAT will be removed from a few other items such as powered milk and liquid seasonings, Mouttet added. "Also, because of the language of the description of some of the items this was not entirely straightforward.
But everything should be sorted out by Monday, because we are working closely with all stakeholders, including the Customs and Excise Division, to ensure as smooth a transition as possible," Mouttet said.
With the second day of Government's implementation of the removal of VAT, shoppers, however, have again said there were no visible savings on their grocery bills. A supervisor at a Port-of-Spain branch of Hi-Lo yesterday said sales had been normal since the measure was put in place on Thursday.
"There has not been a rush of shoppers after the announcement was made. We have seen more or less the same number of people. But this may change as the supermarkets finalise their prices," the supervisor said. Staff were also very busy relabelling shelves so consumers could see readily the "before" and "after" prices.
When the T&T Guardian visited Hi-Lo yesterday, many shoppers were seen browsing through aisles. Some said while they did not doubt the reductions were there, they were so small that it made no difference to them. Sacha James, whose two bags contained basic food items, said, "I haven't seen any major changes. I can't even tell the difference because they are not drastically reduced."
Echoing her sentiments was Cheryl Mahabir, who said she too felt no great financial ease. "I cannot really see any difference, because the goods are already marked up even before they reach the supermarkets," Mahabir added. Woodbrook resident Daniella Marcano, however, was more hopeful.
She said she would give supermarkets more time to fully adjust their prices before concluding whether the measure was effective or not. "I haven't seen any changes in the prices as yet, but I am sure they will make them. I think they need more time to change the prices so customers could have a good understanding of the issue."
VAT removal
The T&T Guardian's food basket items which were initially bought at Hi-Lo in Woodbrook on October 1
Kiss Big Brown loaf $6.75 (zero-rated)
Nestle full cream milk (1 litre) $10.49 (zero-rated)
Sunshine cornflakes $15.49 (zero-rated)
Arawak chicken (four chicken or drumsticks or thighs) $22.49 (zero-rated)
Lettuce (1 head) $8.75 (zero-rated)
Tomatoes (12) $18.14 (zero-rated)
Swiss angel-hair pasta $5.99 (zero-rated)
Trinidad orange juice (1 litre) $12.69 (zero-rated)
Matouk's guava jam was $12.99 now $11.29
Del Monte sweet peas was $11.99 now $10.39
