..by Yves Ephraim
WHO IS TO BLAME FOR THE HIGH COST OF LIVING IN ANTIGUA AND BARBUDA: ABST INCREASE OR GREEDY BUSINESSES OWNERS?
When the ABST was increased from 15% to 17%, many apologists for the government dismissed the increase as a mere 2% and said that in the interest of nation-building that this was an insignificant price to pay.
When the tax took effect, prices on the shelf soured and the people started to cry but the blame went directly to the merchants and business owners.
Business owners were accused of price gouging and for being unconscionably greedy. Righteously indignant government officials declared that this greed needed to be curbed through more price controls.
I have always maintained that blaming merchants for governments’ dishonesty regarding the actual effect of their tax increases is an unfortunate and universal tactic. Many times business owners are reluctant to even try to respond with the facts because of the possible repercussions.
I am always surprised that most people fail to consider that government, itself, can be just as greedy or more so.
I believe that you can draw your own conclusions of who is being dishonest when I work the numbers for you.
Let me work an actual example of what the taxes look like when importing a TV into Antigua and Barbuda to demonstrate the tax you would have paid when ABST was 15% and what that same TV might cost when the ABST was increased to 17%. A seemingly 2% increase. You are welcome to consult a broker to verify the calculations.
I will show you that this so-called simple 2% increase can actually yield a 7% increase in your import taxes. This is 5% more than touted.
Let us say that your TV cost US$1000.00. The shipping is US$100 and the insurance is US$25.00.
For tax calculation purposes this works out to US$1125.00 or what is referred to as the CIF value, ie (Cost, Insurance and Freight).
The duty on the TV is 5%. We must pay 10% RRC (Revenue Recovery Charge).
Take a look at the table below which show the breakdown before and after the 2% increase and let me know who you think is the actual price gouger?
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I totally agree with him it’s the government n taxes is the main reason
Everybody knows the government is greedy and is trying to outsmart their dumb supporters but price gouging is also taking place in the supermarkets especially the one that is too big to fail almost daily the prices on items keep rising and the government does not give a sh*t
All of us who just watched the US elections are now aware (if not before) that inflation is a global problem, caused by ongoing wars and other factors.
The increase in prices in Antigua and Barbuda are way less that what the public in the US complain about today.
Should Prices and Consumer Affairs take a harder stance against those businesspeople who are being genuinely greedy? Of course.
Fortunately for us the high inflation which started during COVID has peaked and is now coming down, which will reduce the impact of both the 2% and the 15% ABST put there by the UPP government.
Was the ‘economy’ an issue that swept Trump into office? I think so.
Keep typing ignorance.
CIF…..1125
DUTY(20) …..225.00
RRC(10)……..112.50
ABST(15)…..219.38 (17)….248.63
TAX INCREASE….29.25……..13.33%
Many of our comments fail to inform the people and come across as petty and hateful against the Goverment of the day. There’s a lot of bellyaching about the high cost of living and whenever the Government does something good for communities and or individuals there are no comments. Everybody is safely in their silos and there is no middle ground. It’s a universal fact that people are not all good or all bad. This article skims the surface of the issues relating to the high cost of imported items. That too is part of the problem and does not provide any suggested solutions.
As an American who fell in love with your country 35 years ago, it is sad to watch it lose it’s local charm and character. It seems outside influence and greed are dividing a place that once was almost a utopia in my eyes.
The government needs to re structure it’s tax code to make it fair for the citizens, impose corporate taxes on resorts and other foreign interests making money off the country.
Tourists can cover the costs imposed on these interests, if they want to visit a beautiful country, then they won’t mind paying a little extra.
Chase out the greed and make it fair for the people of Antigua.
Was there any legitimate reason for the sudden 2% tax increase put into effect disguised by the celebration of Christmas and a New Year – 2nd. January 2023?. Can we noticeable see where that increased extra income has gone into? The roads all over the country in worse state; in poor and not so poor vicinities are awful, messing up our vehicles to no avail; and don’t blame the weather because we have been blessed with no hurricanes landing on our shores this whole year. The hospital and health care centers are lacking, overdue and late payments to public servants still ongoing, prices of main food basket have risen for imported and non imported articles (look at what happened with eggs – a commodity that is mostly never affected, but with the rise of cost in everything due to mainly that 2% tax increase got hit too). The high prices due to covid were already compounded and digested, before the 2% surprise tax effect immediately after a time of joy and celebration of Christmas and the New Year when people are broke because of the high buying season and pumping as a result, extra money into taxes as government income, nor taking into account that it was not a very good sales season for businesses or the people of the nation, since it was the very first Christmas after 3 consecutive years of the strain and awful results of covid in many ways; personal (without jobs or usual income) emotional (because of so many deaths loss and illness), financially (trying to recover without any government assistance like other countries did and not succumb to this worldwide bang and crisis) and in the midst of all these grievances and untimely date, came the disguised blow of a 2% tax increase. People were so tired and livid (and the government knew it) that the increase just slid quietly into our pockets without major outcries (only in Antigua). Everyone has, in one way or another, felt the gap (with very few exceptions) and are hoping for a better way of celebrating and spending in the upcoming holidays – hoping to receive the traditional tax breaks again instead of putting monies aside for all the International fetes and events that are already organized with no special budget but with income taxes revenues, maybe expecting to recover or get paid back for, after the fact. Please look at roads, other infrastructure needs, water supply issues along with electricity, government employees pay, cost of living serious increase, crimes, etc. etc. and make smart moves with wise solutions – cut spending – no more bringing new non- nationals employees with high salaries and bonuses and pumping funds into so much unnecessary travels while funds are not invested where they are seriously needed.
Although I share the sentiments of the author, I don’t think that the merchants or business owners should solely be blame for price gouging.
Every country depends on taxes. Ours is no different. Hence if a new tax is introduced or if there is an increase in a particular tax and it can be justified, then why not welcome it.
The problem is when the government does not put proper price controls in place regardless of the poor excuse that the source market is the factor that cause the price variations.
How can one imagine living in a country with several merchants selling the same products and offering the same services, yet each one has different prices…. It is just ludicrous!!!
A. Johnson. You are so correct. An example of this is English Harbour where locals have been shut out. But this will never stop due to corrupt politicians and government officials. Right now Chet and Telemaque are clearly breaking laws or trying to take control in order to feather their own beds. Chet tried to defend himself last Thursday at a meeting with the Yachting Association members by saying he was trying to help a businessman but he was misled. Trying to help by breaking the law. Really. From what we heard in that meeting Telemaque is now trying to do exactly the same thing.
ABLP, UPP, greedy business owners, all of us(not in this section) who get money and waste it instead of saving properly for trying times.
My point is there are a combination of things but ineffective government is a major contributor. They are not properly policing businesses to stop overpricing and government also have not taken any actions to spend revenue collected in a way that they could have miscellaneous funds for assisting during trying times.
Great government leaders accept blames, practically for everything. That is a good leader. It motivates you to do all you can to help all you can.
A. Johnson . Thank you !!
Why does it take an outsider like A Johnson to highlight the real issues here in Antigua & Barbuda?
The drinks 🍻 are on me when you next visit. Cheers!
Thanks for explaining and as I read the comments it was clear that our responses were more political than reasoning. In addition to what the author explained , the other thing is the use of the taxes , the accountability. We are still paying water trucks to bring water to our homes, our electricity is still inconsistent and the slightest wind or rains off its goes. Our roads are in a deplorable state and getting worst by the day. The government and the civil servants continue to plunder, abuse, steal from the consolidated funds – no accountability. The public servants are not giving equal work for equal days pay, our health system is in shambles- so many clinics are closed. A break down in our education system and no proper response to the rising in violent crimes committed by school children -A talk shop for a few days and then nothing. The amount of missing people for small country is unbelievable. So why pay all these taxes?
Then the opposition party who should be holding the political arm of government accountable has imploded. There was once a power Christian council that held both government and opposition feet to the fire – today the church leaders are more concerned about materials – duty free expensive cars and playing up to the politicians. So it’s now a free rein for those in authority to exploit the masses and misuse our taxes.
So to me we should not be paying any increase in taxes and statuary contributions as well unless we can hold people accountable and consequences are in place when found guilty of misappropriation of our tax dollars.
I think the price increase is because of external factors examples, the war in Ukraine; supply chain being messed up due to the COVID epidemic and our currency being pegged to the US dollar.
I would like someone to explaing this.
After the 2% increase was implemented, I went to a business place to purchase a frying pan. On the shelf it had $50. When I went to cash the lady told me $99. I asked, why? She said because of the tax increase. I said almost 100%? She just looked at me. I kindly told her to cancel it. 😞
Agree with Honourable A Johnson.
I wholly agree that our governments (every single governing administration since our Independence) has been wasteful and not held accountable.
I also totally agree that all our businesses/corporations are beyond greedy, at this point.
However, I want to ask somebody, anybody, a few questions…
Did they add TVs to the ‘basket of essential goods’? Or are TVs considered ‘luxury items’ – always have been so considered?
Wasn’t there an expansion or increase in the list of items included in the proverbial ‘basket of essential goods’, prior to the 2% increase in the ABST going into effect? Inclusion in the this list means that said items ARE EXEMPT FROM THE SALES TAX, which therefore translates that the 2% ABST increase should not affect the price of these particular set of goods…the ABST EXEMPTION BEGINS FROM IMPORTATION all the way to the PRICE THE CONSUMER PAYS AT THE REGISTER.
Then tell me something else… How is it that EVERY SINGLE ONE OF THESE ITEMS ON THE LIST included in this ‘basket of essential goods’ had significant price increases – following the announcement of the increase, and in the lead up to the 2% going into effect?
For example: there’s no ABST on SUGAR… in late November, early December 2023, a 2-KG package of ENERGY brown sugar cost just under EC$9.00… then following the budget speech on 15th December 2023, when the 2% ABST increase and it’s effective date of implementation were officially announced, 3 days before Christmas, i.e. 22nd December 2023, the price in stores for the very same 2-KG package of ENERGY brown sugar increased to between EC$12. and change to EC $14. and change, at various supermarkets.
Does anyone have an explanation for this… Don’t come with the NEW/RECENT shipment C**P 💩…22/12/2023 was a Friday – we all know 99% of our imports arrive on Mondays – there hadn’t been any scarcity of sugar 🤬.
Since then, I have observed that ALL THE ITEMS which are supposed to be free from ABST have drastically improved in price and NONE OF THIS INCREASE GOES TO THE GOVERNMENT, because it is NOT TAX… It is purely mark-up!
Conversely, the price of goods which would typically attract ABST has not really moved in the same way, except for primarily the additional 2%. Does anybody have a theory of why this is the case?
You would think that if the argument is there’s increase in transport and import costs, EVERYTHING would move in similar fashion, but no!
And how is it, that the scenario is the SAME AT ALL SUPERMARKETS/STORES/SHOPS? Are they getting their ADVICE/COUNSEL FROM THE SAME FEDERATION?
As my granny would say, “dem ‘pit inna one another mout’!”
GOVERNMENT GREED?
OR
CORPORATIONS/BUSINESSES GREED?
You decide!
Last questions…
Didn’t the technicians within the Finance Ministry go on national media to explain that this increase was primarily, and I am paraphrasing, ‘to fund the salary increase to public sector workers’?
Haven’t the public sector employees (and also Social Security pensioners) been getting paid on time since January 2024?
So Mr. Ephraim, the prices on the shelves weren’t “soured”; they indeed “soared” and it is obvious to those of us who aren’t wearing coloured glasses that there is plenty of GREED GOING AROUND, and most of it rests squarely in the laps or pockets of the merchants/business owners/corporations – whatever label you want to ascribe unto them.
Much in the same way that you are coming to tell this audience, that the fancy TV (with a US$1000 price tag, that’s a d**ned fancy @$$ TV) – a luxury item, is a good item for a comparative analysis of cost of living increase… When many ORDINARY PEOPLE are STRUGGLING to be able to afford BASIC NECESSITIES (rice, sugar, flour, milk, bread, water, and other groceries, etc.), which are supposed to be TAX FREE!!
Make it make sense please and thank you.
Peace ☮️✌🏾
…The #ROARING_20’s!
…#parallels?
…#puffs?
…#bluffs?
…#COV_ID_29, the impetus?
…Coefficient Of Variance!
…’tis, not by chance!
…the outcome is certain
…therefore, you’ve gotta
…and you’re gonna have to,
…do the dance! Like in a romantic trance!
…then dance! Dance! Dance!
…those tired, aching, sore feet!
…wondering?’ Contemplating?!
…when? Willed the Twain to meet!
…who? Can afford the meat?!
…for? Never, ne’er The Twain Shall Meet?!
Ras Smood aka Jumbee_Picknee
De’Ole Dutty Peg🦉Garrat_Bastard
Vere C. Edwards
You mean all this academic writing to show you have the superior logics instead a just d**m say the government has never been for the people, the minute these people are elected to office they become diametrically opposed to the masses they swore to help, they have assimilated the colonial master the day they are elected and bring hell on earth to it’s people, some degree of Marxism was implemented by upp government back there in terms of social programs that helped the people, like school meal and Petro Caribbean and infrastructure like school and airport and so on, this present government under Gaston is taking away from the poor to give to the rich, PLH over in Barbuda where white monopoly capital dominate tax concessions into perpetuity of course while they continue greasing these politicians hands all taxes to the state is waved in parliament, can you imagine how much it cost to facilitate parliament for a day to pass these concessions or freebs for these white rich foreign nationals? The food catering and the salary of every civil servant and transportation cost to Antigua treasury? I say the poor have fed the white man from slavery to now under neocolinial agenda.
All everyone is doing here is bellyaching, all this talk and no action is the Antiguan way. All y’all do is run off at the mouth. All of you are just pointless drones that get on the radio and act like your all educated and know how the world works and never left this decripid dump of dirt called Antigua. Bunch of clowns.
Price gouging is going on and allowed to happen it is my belief that people in position to stop it do not care, who knows some of them might even be benefiting, this place is corrupt to the core
otger thanks government it’s dishonest greedy business owners imagine the Syian/Lebanese car dealerships want to low ball you for your vehicles then sell for twice the price. they also bring in vehicles get concessions off and still charging premium prices smh!!. 38,000 for a vitz?? an iPhone 12 pro max 3000 plus? ridiculous!!
Its easy to milk the holden calf, but lets not forget, people have options. Travelers too have options, just like any shopper, they will seek out the best deal.
Price gouging at it’s best, the only supermarket in Jolly Harbour. When taxes went up, their prices went up as well. Not just a dollar or two. I’m talking ridiculous amounts. Prices are marked low on the shelf so the unsuspecting tourist will pick it up, when they get to the register a frozen pizza labeled $39 somehow becomes $69. Rosetta chicken once in the twenties price range now in the forties for the same size chicken. Wine which I buy regularly went up $4 after tax hike and another $6 when the tourist arrived, for the same wine. Somethings tripled in price. I’ve been over charged so many times that I’ve started buying less so I can keep on top of their greed while checking out. I’m a resident of JH, a senior, it’s become a very unpleasant task shopping at the wripoff supermarket. Not because I cannot afford it, but because it doesn’t feel right to know your supermarket is taking advantage of it’s customers during these difficult time. While I’m at it. Could the owners at least have someone bag our purchases. At the prices we’re paying you could at least offer that service to all customers. Instead the cashier give you a look likes she’s not gonna do it, really.
Frankly I’m over paying high prices and then have to bag my groceries myself. Friendly cashier who acknowledge customers would be a nice touch. One day I was over charged over $30. Customers service was so rude I walked away to avoid the stress and bad energy from the lady.
I make ever effort these days to drive my tired old self to town to shop anywhere else than the price gouging JH supermarket. I’m sure the one in town is no better. Shame on the owners who don’t seem to give a damn about the people of Antigua only their greed. I would say to the PM, want my vote? Start dealing with these company’s who are price gouging.
other than government it’s dishonest greedy business owners, for intintance Syian/Lebanese car dealerships want to low ball you for your vehicles then sell for twice the price. they also bring in vehicles get concessions off and still charging premium prices smh!!. 38,000 for a vitz?? an iPhone 12 pro max 3000 plus? ridiculous!!
other than government it’s dishonest greedy business owners, for instance Syrian/Lebanese car dealerships want to low ball you for your vehicles then sell for twice the price. they also bring in vehicles get concessions off and still charging premium prices smh!!. 38,000 for a vitz?? an iPhone 12 pro max 3000 plus? ridiculous!!
@John the one on American road heartless and wicked, he cant see god face.
@John the one on American road heartless and wicked, he cant see God face….
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