More for exempt basket
Wednesday May 25 2011 | 05:49 AM

Health and special needs items are being added to the basket of basic goods Government exempts from certain imposts. 

Minister of Commerce and Trade, Senator Haynesley Benn, also said toiletry items would be dropped into the basket, and hinted at the possibility of lower flour prices.

He made the disclosure at the inaugural consultative committee meeting on the cost of living, held at the ministry's headquarters.

The members of the committee represented various fields, including the Barbados Chamber of Commerce and Industry, Barbados Agricultural Society, the Barbados Association of Retired Persons, Barbados Manufacturers Association and the Customs Brokers Association, among others.

"We have taken a paper to Cabinet already and we are seeking to expand the basket of goods. That basket of goods will also include a number of health items and also address the special needs people," he said.

He added that meetings were held with the special needs interest groups, namely the Barbados Diabetes Association and the Autism Association, at which they looked at medications members need that still attracted duties -- an issue the ministry wanted to address.

"We want to address those specifically and cater to those needs...," Benn said.

The original basket of goods included 27 items, such as chicken, New Zealand Cheddar Cheese and salted fish and has since been expanded.

Benn also said the ministry would make the recommendation for some items to be zero-rated, meaning that would not attract Value Added Tax.

During his presentation, the commerce and trade minister stressed the department wanted to place more focus on the enforcement of the Miscellaneous Control Regulation Act as a means to reducing food prices.

The act stipulates the wholesale and retail markups to be imposed on certain basic items, and according to it, they were expected to provide invoices to the Ministry of Commerce and Trade before prices are increased. Failure to comply would result in a $2,500 fine, a five-month prison term or both.

However, Benn said wholesalers and retailers were uncomfortable with the markups stipulated.

"I had some chats with the importers and they indicated to me that some of markups as recommended are not the kind that will allow them to be comfortable. They have shareholders to satisfy and bills to pay etcetera and the 15 per cent in some instances and the 18 per cent in some instances recommended are not the kind that they can keep their business open."

He believed it was an opportunity for this consultative committee to re-examine the proposed markups.

Benn also called on the Barbados Commerce of Chamber of Industry to urge membership to comply with invoice rules.

"Some are willing to show the files, but some have to twist arms," he said.

In addition, Benn said the costs of items found within the basket of goods would be published frequently.