Duty increase starts to pinch on Monday
(CNS): Most non-essential imported goods will be going up in price on Monday as the new duty increases come into effect on 4 January 2010 with the implementation of the Customs Tariff Amendment Bill. Most things that have a levy will be increasing by around 10% following a 2% rise on the current average duty rate. Things currently charged at 20% go to 22% and those at 25% to 27%. Government officials said that the increase will not affect goods which were currently duty free under the old tariff as well as motor gasoline and diesel oil.
Independent MLA for North side Ezzard Miller recently criticised the government for not taking the opportunity to change the current duty system across the board making it fairer and more beneficial to the wider community. He recently told CNS that government had missed the chance to correct a number of anomalies in the customs duty tariffs, improve health and stimulate local business.
He noted oddities such as duty free lard compared to a 22% tariff on olive oil, disappointed that the government did not adopt any of his suggestions he said, “I thought, since the government was reviewing the customs tariff, it gave parliament the opportunity to influence behaviour and encourage a healthier lifestyle,” he said. “Diet is a big problem in Cayman; most of the problem diseases in the community are diet related. Government needs to the lead the charge on healthier lifestyles and this was a chance to place a 22% duty on lard, a food stuff that’s bad for you, and reduce it on healthier oils.”
Category: Local News
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Awrite now…we need an increase in the amount of duty free allowance from CI $350 to at least CI $800. Who da raatid goin mee-ami and not goin spen more dan $350??? Krice!! US allows $800 before duties….since u like to follow da US…follow dat!!! Una killin people!
Goverment is not interested in what is good for the people. goverment is only interested in what is more profitable for the Goverment. People are where their money comes from. If you want a better deal for your money you must get a job in Civil service. Or be an MLA. This will not change. Get used to a higher cost of living. It will get worse as Goverment spending keeps going up to pay their needs.
"Diet is a big problem in Cayman".
So right Ezzard.
lol
Ezzard needs to understand that the reason why the Government paid no attention to his LARD versus OLIVE OIL fantasy, is because no one uses lard anymore. On the other hand Olive oil is very popular and used by many consumers, therefore if the Government reduced duties on Olive oil and increased it on lard they would end up with less duties collected.
The problem here is cash, not some mumbo jumbo fantasy that is believed to be good for your health. I use Olive oil and dont really know weather it is any better for my health than lard or any other fat for that matter.
There is so much contradicting information out there thatone dont know which is fact and which is fantasy.
We will soon say we should get rid of the jerk stands too because the Lard is a product of the Pig, which some doctors claim is the other white meat.
There seems to be a misunderstanding of the actual duty increase and I hope that merchants through this misunderstanding do not pass on a 10% increase to consumers. The duty RATE itself will increase 10% i.e. from 20% to 22%. However, it is important for people to understand that the actual increase in dollar cost of imported goods is only 2%.
For example, a $100 worth of goods imported previously cost the importer $20 and the same $100 worth of goods imported with the increase will now cost the importer $22.00. This is an actual 2% increase i.e. $2.00 for every hundred and NOT a 10% increase or $10.00 for every hundred.
True, it is a 2% increased cost on goods, but it is a 10% increase in the amount of duty paid – as clearly stated in the article!!! And for you fans of bubbly wine, duty is going up 100% – and in some cases this is also 100% of the value, since the duty is calculated on volume…
I disagree with you: The article wasnot clear. It implied a 10% increase in total cost, not in the amount of levy levied:
It stated " Most things that have a levy will be increasing by around 10% following a 2% rise on the current average duty rate."
It did not state "a 2% increased cost on goods, but it is a 10% increase in the amount of duty paid"
"Things currently charged at 20% go to 22%"
That is 10% increase on the duty – any way you look at it… A 10% increase in the total cost OF DUTY… The levy increases by 10% with the 2% additional charge.
Is it the english or the math that has you stumped?
Fact of the matter is – this is a broad description encompassing MOST of the rate changes – as noted before, this 2% additional duty amount is anywhere from 2% to 40% of actual additional increase depending on whether it is goods currently charged fron 5% to 100% duty.
That clear the fog for you?
Regardless of what the article said perhaps CNS will publish this little price change tomorrow to show what merchants can justify charging rather than let them push prices up 10% and point finger at CIG.
Before After
Cost of good imported US$50 50
Duty @20% 10 11 (22%)
Total cost to merchant 60 61
Fixed Markup 60 60
Selling price 120 121
Price increase to consumer 0.8333% – merchants you have been warned…we will not accept more than a 1% increase !!!
Please publish CNS and correct a wrong !!
A two percent increase in duty is a 10% increase in the amount of duty charged since most goods are currently 20%. I get it.