BASSETERRE, St. Kitts – A stern warning was given to businesses in the food distribution industry that price gouging would not be tolerated by the Government and measures are being implemented to guard against that practice.
The warning was given today (Apr. 2) by Prime Minister the Hon. Dr. Timothy Harris while speaking at his first press conference since he began leading the Federation.
His warning came in the context of the fulfilment of the campaign promise that the Team Unity Government made during the recent election campaign of total removal of VAT from food.
Since the announcement was made, individuals had proposed questions about mechanisms which could be instituted to protect consumers against price gouging, and some have even complained that they have already noted increases in consumer goods.
Prime Minister Harris said mechanisms are being put in place to ensure that consumers reap the benefit of the VAT removal.
“We want to make it clear that the Government intends that every bit of savings that ought to have been generated from the exemption of VAT from food and medicine and funeral expenses, that those savings must be passed on to you.
“In that regard, I have directed that the Financial Secretary, along with the Head of the Consumer Affairs Department, along with the Head of Customs and the Head of Island Revenue to meet, come together and discuss how we are going to use the network of the government system to ensure that you are not denied and that the full benefit of the promise being made remains to you that you enjoy the fruits of your Unity Government.”
Dr. Harris said the team has already met with some food distribution agents and while the warning has been sent, it has been tempered with a word of encouragement.
“I should say to you equally that that committee has since met with representatives of the Food Industry in particular. I should say food and distribution. Leadership of Rams, for example, Best Buy and the Chinese Supermarkets to get them to understand that this is serious business and we do not want them to mark up their good unduly so that the benefit to you would be lost.
“We have warned them that the Government will do all in its power to ensure it does not happen. And so we give them a gentle reminder. We say fairness for all and we want them to be fair with the consumers and we will use the network within Government to ensure that that fairness is being realised. I give them a word of encouragement and I give them a word of warning that we will not allow price gouging to take place in the context of our effort to bring relief to the people.”
The VAT removal is slated to take effect from next week Tuesday (Apr. 7).
