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Service Charge on Imported Price-Controlled Goods Suspended

Permanent Secretary in the Ministry of Commerce and Consumer Affairs Sophia Alfay-Henry
Permanent Secretary in the Ministry of Commerce and Consumer Affairs Sophia Alfay-Henry

The Government of Saint Lucia has suspended the six percent service charge on imported price-controlled goods in an effort to keep prices of these goods at an affordable cost to Saint Lucians.

However, this cost cutting measure is short term, as explained by the Permanent Secretary in the Ministry of Commerce and Consumer Affairs Sophia Alfay-Henry.

“I take this opportunity to explain further how the measure will work. The Ministry, through the Consumer Affairs Department, is responsible for monitoring the importation, prices and sale of a group of goods that the government considers necessary for the daily sustenance of the average consumer and to assist in the development of key sectors. These goods are called price-controlled goods which includes oil, milk, tuna fish, salted biscuits, sardines, baby foods (and) cement. They are controlled either by a specific wholesale and retail markup or by a fixed price.

The measure applies to all goods controlled by a specific mark up. For example, milk, powdered and evaporated, attract mark ups of seven and a half percent and ten percent on wholesale and retail respectively. The prices of all price-controlled goods are approved by the Consumer Affairs Department, therefore, the prices of those goods at the supermarkets, small shops or any retail/wholesale outlet should not exceed the prices approved by the department,” Alfay-Henry said.

She added that the short-term measure, which was first announced by Commerce Minister Emma Hippolyte, will apply to goods imported from June 1st-August 31st 2022. . There will be no application of the service charge by the Customs and Excise Department.

Further, goods already imported and either in warehouses or on the shelves of retailers have been priced using the six percent service charge. These prices will remain until goods are exhausted.

“If the landed cost of the imported goods remains the same given that the service charge will not be applied and the markup is fixed, then the price to the consumer will be lower. There are 13 items that are currently under price control for a specific size,” Alfay-Henry said.

“For example, corned beef: only the seven ounce was controlled and not the larger size. Effective June 1st 2022, the importation of all sizes of goods under the price control order will now be subject to price control, however, a further review of the sizes of these goods is being done and an update will be provided in due course,” the Permanent Secretary said.

Saint Lucians have taken to Facebook to lament the rising cost of goods and services in the country. According to some, the suspension of the six percent service charge on imported price-controlled goods is not sufficient to cushion or ease the squeeze on the rising prices of goods and services.

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