EDITORIAL - Consumers hold the true power

There is widespread anxiety amongst members of the public that prices of goods will skyrocket from tomorrow as September 1 rolls around, to offset a newly-imposed National Social Responsibility Levy to the tune of two per cent on imported items.

 

Since the “tax” was proposed in this month’s Budget speech by Minster of Finance Christopher Sinckler, various groups and individuals have been vocal about the anticipated price increase and its effect on consumers’ pockets. However, Minister Sinckler, in another section of the press, has warned that “…there should be no immediate change in price in the product being provided on the first of September. That would have to be provided when the restock comes in sometime later”. He continued saying that consumer protection agencies should be wary and alert to what is transpiring.

 

Sadly, Minister Sinckler’s expectation of the execution of the levy will likely not come to pass. Already he admits to hearing at least one company advertise to customers on the premise that its prices would be shifting on Thursday. Furthermore, the same phenomenon was experienced in the past with the advent of the Value-Added Tax and with the notice of increased gas prices. Not only were increases added to goods and services promptly, in most cases they were done irrationally with some businesses calculating a straightforward increase while others added the increases passed on to them by other service providers before revealing their own price change. In addition, until this very day, costs remain elevated despite frequent worldwide decreases in oil prices. It is evident then that the prices reflected on shelves and in stores are more subjective than reflective of economic factors.

 

As for the call for consumer agencies to pay attention to the situation, it falls flat as they have no real power in the matter to change the prices or the policies of businesses. According to Director General of the Barbados Consumers Research Organisation, Reverend Malcolm Gibbs-Taitt, “Business people will do what they want to do because there are no restrictions on what they can do … There are no penalties whatsoever, and there is no way of monitoring; that’s the biggest problem of all.” 

 

Taking this into consideration, one should expect to be one’s own agent for change. Businesses cannot survive without income, so despite what cost they advertise their products or services, they rely on you the consumer to make a purchase. Therefore, consumers hold the true power and can make a difference in their own financial future. 

 

In fact, not only do consumers decide where to buy, they also decide if to buy at all. Therefore, if a price increase seems too much to bear, and if no other establishment can meet your desired budget, you can choose not to buy that product and use an alternative. The levy is only on imported products so that would mean sourcing locally produced items instead or, in some cases, growing or making the items yourself. Where diets and healthy lifestyles are concerned, fresh local fruits and vegetables are preferable to imported brands in any case. 

 

In general, Barbadians need to be more discerning when making decisions about what they purchase. They need to learn humility and stop living above their means. Though many may disagree with the levy on imported items, the country’s high import bill – especially for food – racked up by citizens of this country each year is staggering. And although the levy will not go towards reducing the national import bill, maybe it will help people to make better decisions and cultivate economically prudent behaviours in this and future generations.