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The Problem with the Government’s Argument on Customs Charge - ULP Broken Promises
ULP Broken Promises

The Problem with the Government’s Argument on Customs Charge

The Government has risen the Customs Charge from 5% to 6%. This, they argue, is just a small 1% charge and will be practically irrelevant to people. The Prime Minister has been trying hard to say that a 1% increase on $1 is just 1 cent and we therefore shouldn’t exaggerate Camillo’s new tax, and that is furthest from the true reality of the situation.

Take this example;

The service charge is now $1. With the change to 6%, it will go to $1.20.

That’s a difference of 20% in the VALUE.

A 1 percentage point increase from 5 to 6, results in a 20% change in the value.

There’s a 20% difference between $1 and $1.20.

The reason why it is so significant is because we already pay a tax on the goods we buy. What the Government has sought to do is essentially increase this in a way that they can pass the blame to the companies importing the goods. This means that regardless of your income, you will essentially pay a 20% VAT on an imported goods.

Perhaps the Prime Minister has been too comfortable for too long, to recognise that once you add this on to everything else, it starts to add up and starts to put more pressure on the poorest Vincentians.

Consider this – SVG is the ONLY OECS country to increase taxes in a pandemic.

This country is small, we rely in imports for some of our most basic needs. The medicines we take, the shoes we have on our feet, the clothes on our back, much of the food in our stores and the cars we drive are mostly imported. Camillo would like you to think that it will just be businesses who have to pay for this increase, but in reality, it is you!

This increase might be fine for those like Camillo, who have comfortable jobs and can rely on their parents. But as employment rises and businesses close this 1% increase will have a huge impact if you need to feed your family or buy medicines when you or a family member is sick. They told us they would “protect and uplift” but their record is proving quite the opposite.