CMC Eyes New Location in Cassada Gardens

https://antiguanewsroom.com/antigua-cabinet-reviews-cmcs-profitability-calls-for-study-on-duty-waivers-impact-on-success/
Antigua Cabinet Reviews CMC’s Profitability, Calls for Study on Duty Waivers’ Impact on Success
On October 25th we got faced with this question. Does the waiver of Duty and Taxes contribute significantly to the so-called success of CMC? I have not heard the outcome of this study by the Comptroller of Custom. But I did suggest that a study such as this is not hard to do, since we have an Integrated Custom Computerized System called ASYCUDA. A system used Worldwide. All import and export Data is captured in this system. The Comptroller should be able to tell the Cabinet in mere minutes how much waiver CMC has enjoyed for any given period. The same information the PM was able to get for waivers of duty free for vehicles. The reason why he now has limited his own powers so that he cannot give more than fifty percent to any one person. Let us do some macro-economic analysis. Very simple if you want to have an idee of things. Lets say CMC imports one container a week. The average CIF value of a 40foot container is US$60K. The way the Duty, RRC and ABST are calculated you can end up with a landed cost of CIF plus 75%. I will lower this figure to 50%. Therefore, per container CMC would be waived about US$30K or EC$82,500.00 in Duties and taxes. Per month the waiver would amount to EC330,000.00. And per year this is EC$3,960,000.00. Since the government is not collecting these taxes one can assume that CMC makes at least this amount of profit per year. But we know the price built-up has in a profit margin. I am not aware what that is however wholesalers usually have a 25% markup on their goods and retailers about 15%. I hope one can now get the picture of CMC’s bottom line. Why it is that the PM is bragging that CMC is loaded with money.
I have stated my objection to this model of the government giving unfair competition to the business community. By the way, my friend Brixtonian never applauds me when I criticize the government. But that is OK Brix. Perhaps you will learn something from me. I do not follow blindly. When it comes to it, I can be a REBEL. And in this case, I certainly call for rebellion by the business community against this government policy. It is simply unjust and unfair to operate a government owned and run company with such an unfair level playing field. The business community should not sit still and accept this. They should ALL start a Class Action suit against this practice and perhaps withhold their payment of taxes for some time as a protest action. It was only this week that the PM aired his displeasure with Sandals not paying their fair share of taxes. Well Mr. PM why not let CMC pay their fair share of taxes. Why waive ALL taxes for CMC. This is not a way to assist the poor and certainly not the way to boost business confidence in government policies and their attitude in paying their taxes.
Another thing. When I heard the PM saying that CMC is looking at buying a bigger property in the Cassada Gardens Area, I quickly went on investigation. And look what I found. The property in question is the former Ken’s Club of the Francis Family. I have mentioned in another post and aired my disappointment in the demise of many of our indigenous local family businesses. The biggest was the ABI Group. And it is sad to see that there is a relation between the ABI Group and this company as the leadman of the company was also one of the directors that presided over the demise of the ABI Bank and some of the related companies such as Jolly Beach. What also surprised me is that it was this government that pointed fingers to the UPP that gave a golden handshake to companies like Food City by purchasing their old steel building for millions of dollars and also purchasing the building on Nevis Street next to MBS for a price way over the value. And not to mention APUA purchasing the Benjies Building for many millions more than it’s worth. And now we are seeing the same thing unfolding here. By using CMC to purchase a dilapidated old steel frame building from the Kenedy’s. This is like, I scratch your back if you scratch mine. And the thing that hurts me is that we really do not have an opposition party to investigate these things. Richard Lewis is busy with trying to get information about a rental property that would get him nowhere whatsoever.
https://faolex.fao.org/docs/pdf/ant70129.pdf
The Central Marketing Corporation was established by an Act of Parliament in 1973. It has therefore strict guidelines by which it should operate. Today CMC is operating way outside the Act. And as I said it has become necessary that the business community takes steps to bring the government back in line to operate within the Act. Instead, it seems that the government is more interested in going even further with the purchase of this large property, CMC will never be able to sustain their operation if they do not enjoy the waiver of ALL the taxes. The government has established Free Trade Zones and Duty-Free Zones. CMC is not operating out of either. Therefore, its operation is ILLEGAL. Period. Let’s leave the politics aside. A government guilty of operating an illegal business should be fined. Any lawyer that dares to take up the case? I guess not. Therefore, things will continue as normal. But Brixtonian, I have spoken out. It’s now up to you to do your politicking. Mr. PM, there are times when I do admire your brilliance, but there are times I wonder if you ever gave it some good thought. And this is one of those times.

8 COMMENTS

PICKYHEAD GYAL November 5, 2024 At 8:37 am

How are people going to get there???
I sure hope this is an ADDITIONAL location…
you saal November 5, 2024 At 9:42 am

@PICKYHEAD GYAL – It not for poor people no more. You don’t see CMC have a marketing department?
Concerned November 5, 2024 At 3:22 pm

Well if they have a shuttle that runs to and from there. I don think that would be problem, for the less fortunate and older folks. The shuttle can run every 20 mins in the day. I guess folks can pay $2.00 to use it and the senior ceterzins don’t pay anything.
Rovi November 5, 2024 At 8:27 pm

Just like the ‘SPRUCING UP’ on Friars Hill Road? People, watch this space very closely.
BEACH BUM November 5, 2024 At 10:17 pm

Why would anyone want to rent and or leased anything to the Government? Your property would not be kept updated and or clean.It would surely loose its values. It would eventually become a COOKS DUMP.
Less We Forget November 5, 2024 At 11:13 pm

https://antiguanewsroom.com/antigua-cabinet-reviews-cmcs-profitability-calls-for-study-on-duty-waivers-impact-on-success/
Antigua Cabinet Reviews CMC’s Profitability, Calls for Study on Duty Waivers’ Impact on Success
On October 25th we got faced with this question. Does the waiver of Duty and Taxes contribute significantly to the so-called success of CMC? I have not heard the outcome of this study by the Comptroller of Custom. But I did suggest that a study such as this is not hard to do, since we have an Integrated Custom Computerized System called ASYCUDA. A system used Worldwide. All import and export Data is captured in this system. The Comptroller should be able to tell the Cabinet in mere minutes how much waiver CMC has enjoyed for any given period. The same information the PM was able to get for waivers of duty free for vehicles. The reason why he now has limited his own powers so that he cannot give more than fifty percent to any one person. Let us do some macro-economic analysis. Very simple if you want to have an idee of things. Lets say CMC imports one container a week. The average CIF value of a 40foot container is US$60K. The way the Duty, RRC and ABST are calculated you can end up with a landed cost of CIF plus 75%. I will lower this figure to 50%. Therefore, per container CMC would be waived about US$30K or EC$82,500.00 in Duties and taxes. Per month the waiver would amount to EC330,000.00. And per year this is EC$3,960,000.00. Since the government is not collecting these taxes one can assume that CMC makes at least this amount of profit per year. But we know the price built-up has in a profit margin. I am not aware what that is however wholesalers usually have a 25% markup on their goods and retailers about 15%. I hope one can now get the picture of CMC’s bottom line. Why it is that the PM is bragging that CMC is loaded with money.
I have stated my objection to this model of the government giving unfair competition to the business community. By the way, my friend Brixtonian never applauds me when I criticize the government. But that is OK Brix. Perhaps you will learn something from me. I do not follow blindly. When it comes to it, I can be a REBEL. And in this case, I certainly call for rebellion by the business community against this government policy. It is simply unjust and unfair to operate a government owned and run company with such an unfair level playing field. The business community should not sit still and accept this. They should ALL start a Class Action suit against this practice and perhaps withhold their payment of taxes for some time as a protest action. It was only this week that the PM aired his displeasure with Sandals not paying their fair share of taxes. Well Mr. PM why not let CMC pay their fair share of taxes. Why waive ALL taxes for CMC. This is not a way to assist the poor and certainly not the way to boost business confidence in government policies and their attitude in paying their taxes.
Another thing. When I heard the PM saying that CMC is looking at buying a bigger property in the Cassada Gardens Area, I quickly went on investigation. And look what I found. The property in question is the former Ken’s Club of the Francis Family. I have mentioned in another post and aired my disappointment in the demise of many of our indigenous local family businesses. The biggest was the ABI Group. And it is sad to see that there is a relation between the ABI Group and this company as the leadman of the company was also one of the directors that presided over the demise of the ABI Bank and some of the related companies such as Jolly Beach. What also surprised me is that it was this government that pointed fingers to the UPP that gave a golden handshake to companies like Food City by purchasing their old steel building for millions of dollars and also purchasing the building on Nevis Street next to MBS for a price way over the value. And not to mention APUA purchasing the Benjies Building for many millions more than it’s worth. And now we are seeing the same thing unfolding here. By using CMC to purchase a dilapidated old steel frame building from the Kenedy’s. This is like, I scratch your back if you scratch mine. And the thing that hurts me is that we really do not have an opposition party to investigate these things. Richard Lewis is busy with trying to get information about a rental property that would get him nowhere whatsoever.
https://faolex.fao.org/docs/pdf/ant70129.pdf
The Central Marketing Corporation was established by an Act of Parliament in 1973. It has therefore strict guidelines by which it should operate. Today CMC is operating way outside the Act. And as I said it has become necessary that the business community takes steps to bring the government back in line to operate within the Act. Instead, it seems that the government is more interested in going even further with the purchase of this large property, CMC will never be able to sustain their operation if they do not enjoy the waiver of ALL the taxes. The government has established Free Trade Zones and Duty-Free Zones. CMC is not operating out of either. Therefore, its operation is ILLEGAL. Period. Let’s leave the politics aside. A government guilty of operating an illegal business should be fined. Any lawyer that dares to take up the case? I guess not. Therefore, things will continue as normal. But Brixtonian, I have spoken out. It’s now up to you to do your politicking. Mr. PM, there are times when I do admire your brilliance, but there are times I wonder if you ever gave it some good thought. And this is one of those times.
soooo because cmc a make money they want to move it??? wtf November 6, 2024 At 7:15 pm

so how ppl ago get up there what bushit is this now¡!!!!
Less We Forget November 6, 2024 At 10:28 pm

The usual suspects have as usual nothing to say. Even when I call them out.

@soooo because cmc a make money they want to move it??? wtf November 6, 2024 At 7:15 pm
“so how ppl ago get up there what bushit is this now¡!!!!”
Nowhere in the article did they say that CMC would close the Market Street Branch. That is why you need to read and understand my comment. CMC is moving towards full competition with the wholesalers. A very bad move if you ask me. A government run “Wholesale Company that is not paying any taxes. It’s best everyone else closes shop. And we hear nothing from the opposition? They are good for nothing.

Comments are closed.

8 COMMENTS

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