16.5% tax on zero rated food items may not be automatically reflected

There's indication that consumers will be spared from the full impact of  General Consumption Tax, GCT, being applied to a list of  zero rated food items effective June 1.

The island's lead distributor of  food supplies, GraceKennedy, says it's unlikely that the 16-point-5 percent tax will be automatically reflected in prices.

During his Budget Presentation yesterday, Finance Minister Dr. Peter Phillips announced that items such as canned corned beef, syrup, dried salted fish, pickled mackerel, condensed and flavoured milk, beef patties and raw foodstuff excluding chicken will attract GCT.

The management of  GraceKennedy is conducting a detailed assessment to determine the impact on prices as well as its operations.

Chief  Executive Officer, Don Wehby, explained that the full GCT will not be added to the cost of  food items due to the current tax structure.                                                                                       

The Government hopes to collect 4-point-2 billion dollars from the widened GCT base.