Shoppers should now see impact of duty cuts

| 13/12/2021 | 74 Comments

(CNS): The waiver of import duty on essential products for children, women and adults with medical conditions, including baby food and diabetic supplies, should now begin to impact prices on the shelves. The PACT Government’s decision to cut the 22% duty on a number of items came into effect more than two weeks ago, on Tuesday 23 November, and officials say there will be a noticeable decrease in the cost of these items to importers, which should now be passed on to consumers.

Deputy Premier Chris Saunders, who is responsible for customs, said it reflected PACT’s commitment to support families during these challenging times by ensuring that essential household items are accessible and affordable.

“The COVID-19 pandemic continues to cause disruptions to transportation, labour and input costs which have been driving the prices of food and other consumables higher,” he said. “In keeping with the PACT Government’s objective of reducing the cost of living, removing import duty on certain essential items will hopefully result in lower prices for the end consumer.”

Government will forego revenue of around CI$2 million for the next two years and an estimated $96,000 for the remainder of this year. Saunders made it clear during the budget debate that this duty cut must be passed on to consumers and that government would take action if retailers are not doing that.

An amendment to section 52 of the Customs and Border Control Act has lifted the 22% duty currently charged on baby formula and food, sanitary towels, pads, tampons, diapers and diaper liners and similar articles, as well baby carriages parts and specialist dietetic food.


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Comments (74)

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  1. Anonymous says:

    You really think duty cuts will be be passed on to end consumers? Ha! Gasoline prices per barrel dropped significantly recently with no reflection at the pumps in Cayman. Shareholder profits and dividends will always trump competitive pricing in Cayman where competition simply doesn’t exist and price fixing probably does.

  2. Anonymous says:

    Cash is like oxygen, you need it to live…..

  3. Anonymous says:

    how about condoms.
    Wont need all that baby stuff if we get cheap condoms.

  4. Justbeindeass says:

    Bout f’kin time

  5. Yup says:

    Why not waive food etc. 🤔 this is so bad with got to pay so much for food triple the cost, our government sucks need to throw all them out . We as caymamians got to pay what the white man willing to pay and have not choice cost of living is so bad yah and they looking out for the people nope just their pockets policlowns

  6. Anonymous says:

    Well, first you need to consider that inflation is running 10% before expecting a 22% price drop.

  7. Anonymous says:

    Thanks you PACT, this jester is much needed and appreciated, especially to that single mother who has to choose between food or diapers because of cost. From me and others who have elderly parents, who has to use a number of these supplies, who depends on their small savings or the little help the children can offer this will help them greatly. For all those who is not so happy remember your turn will come !!

    • Anonymous says:

      They waste $750 per resident per month on just wages to just serve you lol.

      Maybe just give you the $750 like Barbados is proposing?

  8. Anonymous says:

    Baby food for dinner tonight then.

  9. Anonymous says:

    No way will the sellers getting these benefits pass any of this on to customers.
    Never have, never will. Why start now?
    Too much trouble to reprice everything anyway.

    • Anonymous says:

      You are wrong. Costing formulas will be adjusted to reflect the new duty rates and as new stock arrives it will be priced at the new level. Some retailers will wait to sell off the old stock at a price based on the old cost but prices will come down. The grocery business is highly competitive and the major players won’t leave prices at the old level for long.

      • Former New Yorker says:

        So true! All of the prices where I work are calculated by software the adds a margin to the landed cost. But even though the duty waiver helps, base prices have been rising, so customers won’t see as large of a reduction in prices as they might expect.

  10. Anonymous says:

    Screw that. CIG should not make food choices for me.

    • Anonymous says:

      Government should always put duties cuts in headlines in newspapers and radio news and talk shows, for business owners says, I didnt know that governmet cut duties on that

  11. Cheese Face says:

    What that guy said…….(and the sunscreen)

  12. Anonymous says:

    bonkers stuff. are they trying to encourage locals to have more feral kids…???

    • Anonymous says:

      I see loads of expats with the minimum of 4 kids traipsing around like the Brady Bunch. How are they affording 4 – 6 kids??

      Not every “local” has multiple kids and depends on the government. Do you have an issue with there being more of us than there are of you?

      Are there no teen pregnancies and irresponsible people in the US or the UK? I guess those countries a perfect utopia or planned parenthood and wealth.

      It seems if expats have 6 kids- it’s planned.

      If Caymanians have 3 kids – they’re deadbeats.

      Stay in your perfect close-minded, privileged little bubble and STFU.

      • Anonymous says:

        truth hurts?
        btw expats pay their own way.

        • Anonymous says:

          with all that privilege and hand outs given to you to be able to move to a paradise island that isnt your home, i would hope you can pay your own way. you condescending shitbag

        • Anonymous says:

          The truth obviously hurt you. You realized the shoe fit you after it was flung in to your face.

          Many Caymanians pay their own way. It’s just so convenient to push that narrative for the expat that come here and thinks “this is paradise, why should Caymanians have it. I deserve this more than they do”

          Now you’re just trying to repopulate the island in your own likeness by breeding like rabbits.

        • Anonymous says:

          Leeches pay their way too I guess..at the cost of someone else’s blood.

      • Anonymous says:

        Whenever I need a reminder on how expats really feel about us, how much they hate us, and how racist they are – all while finding every which way to stay here (to our detriment) and continue to enjoy our birthright and what our forefathers built – I just need to come and read the CNS comments section on any article. And we were the idiots who welcomed them with open arms!
        Thank you for your comment.

  13. Anonymous says:

    That’s great for the women. What do the men get? #equalityandallthat

  14. Cheese Face says:

    Sunscreen? Should be duty free all the time.

  15. MackB says:

    While I appreciate the intentions of the government I can’t understand how this is possible with the government projecting deficits. This is a time for fiscal prudence and the government should not be making these types on concessions while projecting deficits. This is irresponsible leadership.

    • Anonymous says:

      Yes but it’s part of the re election campaign…it trumps all other considerations .

    • Anonymous says:

      Irresponsible leadership of governments are their large pay increases and bonuses! Did you not see the extra fees brought in from the increase in company registrations.

    • Anonymous says:

      Maybe cut their 1/2 $ Billion a year payroll?
      Just a suggestion. Do we really need to spend $20 a day per resident on just their wages? They do nothing for me

  16. Anonymous says:

    What became of flour.milk etc…that was duty free years ago?
    Was it just for the pizza franchise holders?

  17. Anonymous says:

    I’ve never had anyone complain to me about the cost of diapers. What I continually hear about is the cost of electricity, fuel and housing.

    Work on our CUC bill and then make a big deal about that.

    • Anonymous says:

      We live in a 2 bed 2.5 bath townhouse with all elec appliances -avg elec bill of CI$160 monthly. Fairly reasonable I say. It can be done with care not to waste, good maintenance and insulation.

      • Anonymous says:

        Good for you! *slow clap*

        You should be so proud of your accomplishment.

        And you did it without being smug or lying about it. Rare thing that! Rare!

      • Anonymous says:

        It is EXTREMELY rare that older properties, which lower income people rent, have insulation or double paned windows. Why should the landlord (slumlord) care what your CUC bill is because of their derelict properties from the 70’s/80’s etc.

        • Anonymous says:

          Slum landlords here are numerous. An absolute blight on society.

          • Anonymous says:

            Ever thought that these so called slum landlords are living in the property themselves and renting out parts for extra income because they are either elderly or disabled? It’s not always what people see it to be. Maybe the children come around and help collect the money sometimes. But those older properties belonged to older Caymanians and once upon a time it was or still is their home.

  18. Kman says:

    Good move 👏 but what about duty waived on birth control pills & condoms? Maybe now would be great time to introduce sex education in schools and a planned parenting program.

  19. Anonymous says:

    How’s about the MP’s and lazy do nothing service takes a pay cut and we pay no import tax?

  20. Anonymous says:

    Yeah right! Just like flour products went duty-free 2 generations ago and many dairy products went df one gen ago; didn’t see any diff on the receipts then and still won’t again. Some merchants have a conscience and will show it in the form of a price reduction for a few weeks/months, then with supply-chain reasons/excuses, prices are back to what they were. Remember, US inflation = Cayman inflation. The other merchants? Forget it!

  21. Anonymous says:

    When Government takes off duties, they need to check and make sure its passed on to the consumers

  22. Anonymous says:

    Naive, guarantee prices stay same and shops reap profits…

  23. anon says:

    What about men with medical conditions such as incontinence after prostate surgery, I suggest Mr Saunders should have sought doctors’ advice before compiling his list.

  24. Anonymous says:

    Ok.
    And thanks too for all those free Back to Work courses in Office Practice and Compliance that businesses have sponsored all year through the benevolent Chamber of Commerce.

  25. Anonymous says:

    Lol. Wishful thinking, CI Gov.

  26. Anonymous says:

    Will the private sector pass on this reduction to their customers.

  27. Pam T Liner says:

    Great. Duty free tampons just as I hit menopause!

  28. Anonymous says:

    Encouraging people to have babies they don’t need. What about rubbers and beer?

  29. Anonymous says:

    Cabinet approved it on the 23rd but it has to be gazetted first to become effective. When was this done? I have not seen it.
    Plus customs will need to make the necessary changes to their system, again to make it effective and not charge the duty to importers. Then after all that, importers will need to have sold all the stuff imported at the old duty rate before applying to goods imported at no duty. All told this is not a two week process.

    • Anonymous says:

      N the Brac prices NEVER, NEVER, go down when duties are taking off items. Like when 12-1/2 cents was taken off gasoline, prices at the pumps up, when i question one station owner about it, he told me he didn’t know Government had took it off and made it duty free. Taking duties off things in the Brac only makes the business owners richer for it are NEVER passed on to the consumers, never

    • Anonymous says:

      Excuses, excuses, excuses

      Typical food mart response

      Much like the gas station response

      Nothing will happen here

      Move on

      The supermarkets will simply pocket this rebate

  30. Anonymous says:

    Excellent!

    Now we need the same done for all fruits and vegetables that can’t be grown locally.

    It must be made affordable to eat healthy, this will also save government lots in health care costs.

    Healthy living must be made affordable!

    • Anonymous says:

      And whilst we’re at it – solar panels and the constituent parts of renewable energy systems….

    • Anonymous says:

      Good luck. Truly!

      Instead, many locals will continue shoveling pizza, fried chicken, and burgers down their gullets. Not because they’re stupid, but because it’s a very cheap way to fill up. It’s loaded with fat, sugar and salt, with minimal fiber and vitamins. This is not even a stealthy way to kill the poor, it’s been known for a long time.

      FFS CIG, make fruit and veg cheaper, you’re literally killing people slowly, and condemning children to a life of obesity and health issues, as the patterns they experience when young, translate into habits as adults.

      Put tax on true luxury goods, and minimize the impact on people just trying to live healthily. As pointed out, the long run benefits are worth it.

      • Anonymous says:

        so is the food served at Fidel’s and At any if the brunches expats like to frequent any healthier that pizza? Is raggazzi pizza healthier than the pizza commoners eat?

        Why do you people come on CNS and put the word “locals” before anything negative. It’s the same thing you e done back in your countries to blacks or immigrants.

        Now you are an immigrant in my country and you’re trying to rebuild it in your pathetic image.

        Don’t come here to put your knees on our necks. There are some who will lay down and let you stifle us but there are a lot of who are tired of this degrading talk of Caymanians.

        I see lots of fat expats. Lots of alcoholic expats. Cocaine sniffers. Sex addicts. You sit on a high horse that riddled with fleas.

        I’ve met many, many, MANY terrible expats. Hence why, I have little patience for the BS many of them spew.

    • K says:

      Agreed on cost of healthy foods. In addition, prices of gas and CUC 🙆🏽‍♀️.

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