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Duty/Import Tax Free Shopping Days

From "Suggestions to stimulate economic recovery for Bermudians once Shelter in Place ends"

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Have duty/import-tax free days in which the government would reimburse/cover the import and duty taxes added to items to encourage local shopping. I.e. if the import tax to bring in clothing for a retail shop is 10%, the government would reimburse the retailer for this tax on the items sold that day. One of the biggest complaints is consumers are able to order an item online, ship here and pay a duty and the item is still cheaper than if purchased locally. They do not understand why the local retailers are not able to take advantage of economies of scale with bulk purchases, import the items, add a profit and the item NOT be cheaper than if they did it themselves. The stores would have their inventory and know what taxes they've paid and hopefully this decrease in price could encourage local shopping.

Here is an example:

  • one Saturday every clothing retailer can take a % off their inventory price, have in-store events/giveaways/raffles (whatever is needed to increase foot traffic) and then able to submit the total sales for the day to government with the corresponding tax receipts (since they would have already paid it to bring the items on island).
  • Each Saturday could be a different sector - clothing, hardware, nurseries, art/crafts and etc.

This isn't an immediate fix and will probably not be a dollar-for-dollar cost break for the consumer BUT it could help get local stores open and still cover the cost of such taxes for the local businesses they've already paid.

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Posted by

Profile of T PT P on April 23, 2020

Current status

proposed

Tags

Work, economy and tourism