Prime Minister Perry Christie's recent announcement that the government may delay the implementation of value-added tax (VAT) will not affect a request from the Retail Grocers Association for a 33 percent increase in the markup grocery stores can apply to price-controlled items, Philip Beneby, president of the Retailer Grocers Association, told Guardian Business.
Beneby said the association is still in the process of working on submitting a formal request to the government.
He noted that price controls on food items are the only ones not to be adjusted since they were first set in the early 1970s.
"All we are basically asking them to do is to use the same formula or criteria they used in (1971) to arrive at that 23 percent mark up... for today's cost taking in all the additional cost in today's world," he said.
Super Value President Rupert Roberts has said without the markup stores may suffer major losses or go out of business after VAT is implemented.
The markup, determined by the government, represents a control on the amount of profit stores are able to make on certain items deemed to be essential, with the goal of controlling the cost of living for the average consumer.
Beneby said the government's possible delay of VAT gives the business community more time to prepare.
"Right now it (VAT) is something that is being rushed," he said.
"I don't think the government is ready for the implementation of VAT.
"If they had tried to implement it on July 1 it would have been extremely chaotic.
"If it didn't get off to a good start at the beginning, it would have been rather problematic for them moving forward.
"It is important that when it is implemented there is a smooth flow. That way, if there are any hiccups it wouldn't be to an effect where it would create that much of a problem."
Christie hinted that VAT will not be implemented on July 1 as originally stated.
He also announced that the government has abandoned its plan to introduce VAT at 15 percent and is instead eyeing a lower rate.
He said the government is waiting on the completion of dialogue with the private sector and the general public as it relates to the tax and the question of whether the government is "absolutely convinced" that there really is no viable alternative to VAT.
"We are not running from the fact that the government needs revenue," Beneby said.
"They have to be careful not to harm any businesses. If they do, then the businesses would not be around to collect the VAT."

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