Organizers of the first ever “Shop Dominica” say they will be meeting with government on Thursday morning to discuss concessions, such as a VAT-free day, for the next staging of the event.
That, despite the fact Prime Minister Roosevelt Skerrit made it clear on Tuesday that any discussion on the removal of VAT is out of the question.
“I want to say to the certain groups and individuals who have been calling for the removal of VAT or exemption of VAT, they should not pursue that call if they are really interested in the well being of the country,” he said.
But the president of the Dominica Association of Industry and Commerce appeared optimistic that the government is willing to talk. “Constructive dialogue will take place and the board will consider either a VAT free day or any other concessions that will assist in helping consumers save,” she said.
She said a VAT free day was brought up during last weekend’s Shop Dominica event and said the government will be coming on board with the event next year, however she did not specify how the government will be doing so.
Meanwhile President of the Dominica Hotel and Tourism Association Yvonne Armour said that if a VAT free day resulted in the loss of revenue for the government, organizers of Shop Dominica will find a way to cover the loss by some other form of concession.
“Shop Dominica” was a weekend shopping experience with significant discounts from a number of local businesses.
If the VAT is too much for Dominicans why don’t the pm give the people what they want and eliminate the VAT, don’t they think of the people.
The Prime Minister will not consider nor can he consider the removal of the Value Added Tax (VAT). The tax is not based on any real added value on goods and service produced in accordance with its definition and intent. The VAT is an economic misnomer in Dominica. It is simply an indirect sales/consumption tax levied by government on consumption, expenditure and have nothing to do with added value.
The VAT merely serves as an effective way for government to squeeze more money from the consuming public in order to increase government’s revenue.
One understands that the VAT is a necessary evil. Whereas one is sympathetic to the reluctance of the Prime Minister to do away with the VAT in its entirety, the devil is in the details of the lies we have been fed with regard to the status of the Dominican economy. Therefore, every time the Prime Minister makes a statement on the state of our economy which does not match the economic reality, he quickly has to make another statement to either cover up the prior statement or to extend the life of the previous lie.
If any serious consideration had to be given to the reduction or removal of the VAT, this would/should, have been done during the period leading up to the budget presentation in July 2012. It was not done then. The budget was presented based on the estimated amount of revenue that the VAT is expected to contribute to government’s estimated revenue over the next budgetary period.
The removal of the VAT in its entirety at this stage would be disastrous to the already worsening financial position of the government, especially in light of the absence of a vibrant productive sector. Therefore, it is almost impossible to get rid of the VAT under the present circumstances. From a macro-economic standpoint, this may potentially increase the disposable income of consumers and have a positive cumulative, rippling and multiplying impact on the overall economy.
Furthermore, having boasted how well the Dominican economy has been doing, government cannot afford to remove the VAT at this time. The DAIC and Shop Dominica organizers are encouraged to engage the government in discussion for the next staging of the event.
One has every confidence that government will recognize the prudence in coming on board in granting a “VAT free day” with effect from 2013. Even if the government does not wish to do so for justifiable economic reasons, it should do so for political reasons as we get closer to the next general elections- of course as long as Mr. Skerrit is seen as the compassionate, generous and benevolent leader.
So you mean to say, the Prime Minister is trying to say that Dominica will lose so much money is one (1) VAT free day is given, “only on clothing Items’? Nonsense. How much money the country can lose so? and what that burning me, they doh even plan to give it on a month end and the shop owners are still willing to accept that. Come On Mr. Prime Minister!
For the DAIC to have called for a VAT free day was entirely nonsensical to me. Our merchants must stop blaming the poor tax for their mad prices. What they should have done is decide to reduce on their profits for that day,
Had they done so then their sales would have increased and all would be happy. The shop Dominica idea was a good one and I hope it is repeated. Oh and DAIC please consider having the weekend smack on the month end.
@ Anonymous- Try ordering one pair of shoe. See hoe much you pay the customs..Then come back and comment!
@ Anonymous- Try ordering one pair of shoe. See how much you pay the customs..Then come back and comment!
Som business owners in dca are too greedy. They fail to understand the true meaning of sale. Their sale prices are still high and unaffordable
Dear sir/madam
In replying to your suggestion that even after sale ,sale prices are still high we have costs to cover as well such as rent , utilities,wages,social security and other miscellaneous unforeseen costs such as staff sick leave which is a norm now .
So please try to understand that a company may give up some profit percentage but I’m sure no company will sacrafise or subidise expenses.
I hope this answers your query.
Vat free day? What next? Income tax free month. This is absurd! Dominica ‘s economy is small and very dependant on taxes. Money does not fall from the sky. I believe that shop Dominica venture would increase sales so why remove vat at that time? It is basically shooting ourselves in the foot!
You see fot the longest time we are trying to say that when you have VAT in play then income tax threshold should increase thus allowing some disposable income in the middle class hands .
You see by doing that you will still collect VAT on what people spend and at the same time tax the rich and not the poor and middle class.
I think a VAT Free Day is an excellent idea. High taxes adds on additional cost to goods and services, that severely impact discretionary spending by consumers.
there are ways it could take place. for example it could be 5% on vat on the day. it stayed at 15% and persons made use of the discounts so any decrease just for the day would be appreciated.
what was the benefit of the shop dominica day? was it successful? Details people please
Sadly a lot of the shops seemed to be discounting items they’d had on their shelves for years and that had always been over priced and or just not wanted…
It was reported at the press conference earlier today, which was held by the organizers of the event (DAIC, DHTA and the DDA) that the Shop Dominica weekend initiative was a great success, in spite of teething problems including the timing of the event.
According to the organizers, the overall objectives of the initiative to stimulate spending, generate business activities in the economy through discounts, attracting stay over visitors and encouraging return visitors to businesses were achieved.
The organizers expressed their delight with the outcome of the initiative and feedback that they have received. Consequently, they intend to make it annual event.
Come on Dominican, put your imput your,comments matters
Objectively speaking, no government would entertain the removal of the VAT in its entirety in the current economic situation. This would be political and economic suicide, albeit there could be some medium to long term benefits.
All politics is local and many times it is the short term political gains that matter. As long as one has to win another general elections to remain in power, ideology, theory, principle, truth, honesty, integrity, transparency and ideals become early causalities in our political and socio-economic reality. They all give way to pragmatism in a mode of survivability.
Let me add that the representative of the DHTA should have a broader view of the proposed “VAT free day”. She suggests that if the concession were to result in a loss of revenue to government, the Organizers will seek to find a way to cover the loss. Such compromise is unnecessary in my view. The impact of a “no tax holiday” on the overall economy is much more dynamic. The results are not so narrowly or immediately assessed.
The Shop Dominica initiative aims to stimulate increase spending in the private sector and its impact may be more long term than a potential one day loss of revenue to government. The rippling effects of increasing consumer spending through the no VAT holiday could produce more visible and long term results on profitability, confidence, and sustainability of business.
If every idea that comes from the private sector has to be sponsor in some way shape or form by the government, then I really don’t see a need for such a sector. Are you guys asking the government to layoff works or to not provide services for that day so you can have an event? What’s the benefit? No lose revenue anyway. Something to think about! I would strongly suggest instead, that you guys look at a back to school, Xmas or some other meaningful event, when the majority of persons in Dominica, will be receive a barrel form relatives oversea. We should seek to discourage them; by having these economic events. Why? because we know this is going to happen. Lost of business and no revenue to government. Then making a request to the government base on that fact has more relevance.
Dear organizers of Shop Dominica please tell your participants that shop Dominica is not a time to take out their dry rot, not selling clothing to sell on discount. Let’s aim for higher heights in this country.
correction to entry #2.i wanted to say at least twice a year, we can have a no vat day. just let persons know in advance and please let it be on a month-end.having it before month end does not prove any point. i am sure you all did not realise all the benefits anticipated . -as most persons had no cash in hand at that time
i think more persons from the private sector should come on board. if we are talking about stirring up the economy that is the way to go. i remember last year-Paris Williams had a no vat day and i am sure that boosted the economy because persons who wantede to start a project after a long time could. u should have seen the number of persons buying sand ,stone and block.Ask me, i will tell you, i was able to start my investment because of that day and i know alot of persons in the building sector got jobs as a result. Let us not look at that narrowly, it has serious positive implications for the private sector
Shop Dca??? hmmm…some businesses gave 5% off…what is 5% off? Second of all i had to be hunting down calling how many businesses to find whether they were part of shop dca…information was poorly dismissed…third of all..how can u guys have shop dca from 24-26 and on Sunday 26th of August not more than 5 businesses were operating in Roseau…at least for that particular weekend Roseau should have been moving on that Sunday…I think this event needs to be better planed for the future with door breaking deals..not 5 and 10 and 15%….smh…open your doors to the public a bit earlier so people like me that goes to work from 8:00 a.m. can actually come to Roseau from 5:00 a.m. and start shopping. I mean its a yearly event so why not make it grand. And there should be no excuses about its the first time…cuz the organisers could do a much better job….the organisers were not tenagers or people that just came into business…..**rolling my eyes**
skerrit store that there man?
Wow! A VAT-free day? That sounds interesting. It shows a willingness to look outside the box, under the cover and deep within. There is much to be gained from this Shop Dominica initiative. If businesses are willing to reduce their markup to stimulate economic activity, I believe the State should come onboard. This level of maturity by the private secctor is very encouraging. Thats the kind of leadership we need to see more of. I think the private sector should brand the event and bring more diversity to it by adding a job recruitment fair, more out-door cuisine, reduced fees on that day for professional services, $1 reduction in the price of fuel, $2 reduction in commuter fares for rural travel, $2 reduction in the price of landed fish, etc., etc.. My other suggestion is that any State concession should only to available to businesses which actually participate in the event.
Shouldn’t the DAIC by now be reporting on the success or otherwise of the first staging of the SHOP DOMINICA? Some businesses have said that it was very good.. I would like to hear on average, how it went..don’t u??
It was reported at the press conference earlier today, which was held by the organizers of the event (DAIC, DHTA and the DDA) that the Shop Dominica weekend initiative was a great success, in spite of teething problems including the timing of the event.
According to the organizers, the overall objectives of the initiative to stimulate spending, generate business activities in the economy through discounts, attracting stay over visitors and encouraging return visitors to businesses were achieved.
The organizers expressed their delight with the outcome of the initiative and feedback that they have received. Consequently, they intend to make it an annual event.
They just start they asking for cwadie already? Come on