NASSAU, BAHAMAS — Super Value’s owner Rupert Roberts said yesterday that the “full effect” of the federal government’s duty reduction on a lot of food items will likely be felt “inside a month”, noting that by that point inventory bought at higher duty rates must be exhausted.
Speaking with Eyewitness News, Roberts said: “The value of eggs went down immediately.
“The Bird Flu caused a price increase about two months ago and now the value is coming down.
“The associated fee of all the items government reduced the duty on will start to return down as merchants usher in new inventory.
“Eventually, inside a month, the complete effect of the duty reduction will probably be felt and enjoyed by consumers.”
The 2022/2023 fiscal budget comprises tariff cuts for roughly three dozen food items as consumers battle with a historic rise in inflation.
Items corresponding to cheese, lettuce, salad, beetroot, turnips, cucumbers, peas and beans, asparagus, celery, sweet peppers, hot peppers, eggplant, spinach, pumpkin, corn, beets, artichoke, yams, cauliflower, broccoli, cassava, sweet potato and all preserved vegetables, yeast and baking powder have been designated as duty-free.
Based on Roberts, the duty reduction will likely equal half the rise in costs caused by the ten percent VAT being placed on breadbasket items.
“Inside a month, items we paid high duty on will probably be exhausted and new inventory on the lower prices will probably be widely available,” he said.
“I believe government selected to cut back the duty quite than touching the VAT.
“I’m not surprised by that.”
Still, Roberts said that while the duty reductions will probably be of great profit to consumers, they’d not make up for top inflation.
He said: “Inflation continues to be there. I’d say that inflation’s biggest impact is on the breadbasket items.
He noted that the war between Russian and Ukraine has not only impacted fuel prices, but in addition other widely used products corresponding to flour, grain and cooking oil.
Solomon’s recently issued a notice to its customers indicating that as of this week they’d begin to see price decreases because of this of the customs duty rate reductions and will expect savings to be passed on as soon as they’re received.