Plans for local food stores to temporarily shut down operations in the days leading up to, or after, value-added tax (VAT) implementation are "not off the table", according to the president of the Retailer Grocers Association (RGA).
RGA President Philip Beneby confirmed to Guardian Business that several major retail grocers are considering temporarily closing stores due to the lack of a VAT "grace period" that would allow grocers to prepare their businesses for the tax, which will involve providing customers with VAT-inclusive pricing on all items for sale.
"It's not off the table, because come January 1 (2015)...there's no grace period [so] we'll have to wait and see...We're willing to work with the government, and we hope that they see the wisdom in working with us.
"One of the issues facing us is the inclusive VAT pricing...that is the issue with the transition period. There are ongoing discussions at this time, and we're searching for an agreeable solution," stated Beneby.
Guardian Business has been told by some grocery retail sources that ensuring each and every item sold has updated pricing could take up to two to three weeks. Food store operators are concerned that if they sell items without updating the pricing, they will be eating into their profit margins when they have to pass on 7.5 percent of the money taken in to the government in the form of VAT. As such, from a business perspective, some have suggested they would rather close altogether for up to a week or more than risk this loss.
During a meeting on Friday between the Ministry of Finance and the RGA, officials informed Beneby that the government was still taking the proposed grace period into consideration. Beneby added that customs officials would additionally meet with representatives from local supermarkets and wholesale grocers in the near future.
However, Beneby voiced his support of the tax and hoped for further cooperation between the government and private sector ahead of January 1.
"VAT is inevitable now. We know the government needs revenue... Everybody has to get on board. Government has to work with [the] business sector and vice versa," said Beneby.
Despite his support of the revised tax plan, Beneby remained concerned as to when the RGA and other Bahamian businesses would receive the industry-specific VAT guidelines and regulations promised by the Ministry of Finance last week.
"It's a concern for businesses everywhere...We are now getting ready for September, and we're still waiting on these things," said Beneby, claiming that the government had assured the RGA that the new guidelines would be available by this week.
Financial Secretary John Rolle and Minister of State for Finance Michael Halkitis both claimed that the government would "ramp up" its VAT business education programs in the coming weeks, and were confident that businesses would be ready for January 1.
"We'll only have a few months and we have no real specifics," said Beneby, echoing sentiments from across the business community that VAT implementation alone would not solve the country's financial issues.
"VAT alone is not going to do it. We need to have true fiscal reform in this country...We should not run away from the fact that we need to have a Freedom of Information Act (FIA). It is needed to move ahead as a country," stated Beneby.

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