From June 1, Saint Lucian consumers received a reduction in the service charge on price controlled items as the government followed through with its commitment to help citizens ‘ease the squeeze’ on high food prices and other commodities.
At a media briefing, last week, Commerce Minister Emma Hippolyte declared that the long-promised removal of the 6% service charge on price-controlled items would come into force on June 1, as outlined in a statutory instrument issued by the Ministry of Finance.
Essential commodities, which include basic food items and other items are being sold at reduced prices. The minister added that some items with a larger capacity will also be listed for reductions.
“As a government, we must protect our consumers as much as possible,” Minister Hippolyte said, stating that this issue was not ‘politically motivated’ while rebuffing criticisms from the opposition.
“We cannot control the price of goods as it lands at the port, but what we can do is to look at the VAT, the service charge, and the areas where the government has control over,” the minister added.
Saying that the government was not perturbed by the opposition’s remarks, she assured: “When our consumers go into the supermarkets, our responsibility is to give them a reprieve and that is what this SI is doing.”
Additionally, Minister Hippolyte said, the staffers at the Ministry of Commerce have worked in tandem with the business community, particularly the Chamber of Commerce, and the Ministry of Finance to prepare a list of the reduced items “for final vetting, so we can have this effective by 1st July.”
The minister said that the government “was working on behalf of consumers and the people of Saint Lucia,” as the authorities grapple to implement measures to help consumers cushion the economic hardships as global inflationary prices skyrocketed post-COVID-19 and remain volatile given the Tariff measures implemented by the US.
The items listed for price reductions include; powdered milk, cheddar cheese, potatoes, onions, garlic, split peas, black-eyed peas, rice, wheat flour, soya bean oil and other oils, margarine, canned corn beef, sardines, mackerel, tuna, brown sugar, salted biscuits, baby foods,
The Minister stated clearly, “These are some of the basic things that all of us must have in our shopping baskets…not the luxurious items, but the basic foods that we purchase.”
Minister Hippolyte further explained that there is a procedure to ascertain the final price of items on the supermarket shelves. “After the goods have landed, the retailer and importer have to do the basic calculation and it is presented at the Ministry of Commerce for confirmation of the selling prices,” she said.
The minister said a ‘monitoring process’ follows after the goods are placed on the shelves. This involves officers from the Ministry of Commerce, as well as, representatives from the Consumer Affairs Association conducting periodic checks.
Speaking on the relations between ministry personnel and the business community, Minister Hippolyte said, it is important that “they (business community) know their role.”
She added: “As a government, we have assisted because we know the challenges faced by the business community …and within the Budget Debate, the Prime Minister made significant concessions to the business community.”
She went on to say, “This was done specifically so that they can work with the government to protect the consumer …and they have given us a commitment that they will work with us as much as possible.