7 News Belize

How The GST Discount Will Work At Stores
posted (December 10, 2024)
It is widely expected that this coming Saturday will be the largest shopping day of this year because it is the first of the GST sales days. Combine that with Christmas discounts which are already in effect - and it should be a shopping bonanza. But is it enough to make shoppers keep their money here in Belize? We went to two major retailers to find out. Jomarie Lanza reports.

Michael Theus, GM - V Department Store
"At the V here, we are extending our Black Friday to a Black two weeks."

Here at "V Department Store" - they welcome the four GST discount days.

Michael Theus, GM - V Department Store
"For us, I think it's a very good thing that was done for the Christmas season that came up here."

"It gives more buying power to customers who come into the store. For us, we look at it as being something that was well needed in helping customers to go to, I'm going to say stretch your dollars, take it a bit further."

"We are embracing it. I think it's going to be something that basically will boost sales for us and also offer to our customers then that extra discount."

The manager says that the GST discount, coupled with ongoing Christmas sales could translate into saving of more than 25% off:

Michael Theus, GM - V Department Store
"Our one-year anniversary was actually yesterday and we have decided to give some sticker discounts throughout the store from yesterday up until the 24th. So what we are saying now is that you're receiving at a 5, 10, or 15% off the product and then we remove the GST where it basically compounds and gives a greater buy back power to persons who are actually purchasing from the store."

At Mikado, they also see it dovetailing with ongoing seasonal sales:

Umesh Mahitani, Mikado, Partner
"We already had a sale planned for the 13th, 14th and 15th so that will just compound the savings for the customer and to break it down for you and the customer is if they are going to get 10% or 20% depending on what they are buying they are going to get an additional 12 and half percent off that item for example if an item is a dollar then if were to give 20% off for that they would pay 80 cents then if you take off another 12 ½ % off that that is another 12 and a half percent so they will end up paying somewhere around 67 cents there about."

"We are trying to promote fabrics most of all. All the other items may have a lesser discount but in general everything is on sale."

And while some businesses have told us it will be an administrative nightmare not charging the GST - at the V Store - they said, no problem:

Michael Theus, GM - V Department Store
"No, I don't see firstly no problem. Jules, what I'm prepared to do right now is that I will actually run into a sale with you to show exactly how easy it is. Our system has really been set for us. And we can do handle our discount that we have a sticker discount and the GST portion off of it and give the customer the price that they're supposed to be receiving. I think it's relatively simple."

"Some stores, yes, might actually have a way where they have to have an override person that has to override. At the end of the day, I can go and reconcile my full cash sale. We have to do it anyway. I can full reconcile and see exactly what is my discount portion, what's my GST portion. At the end of the day, if there's abuse, I can do it because then it has a name attached to it who's a cashier person."

"What I have here is one of our Kalorik Air Fryer. This is actually priced at $190. Okay. Great. We don't scan it for you. The price is $190. after discount it's $168.89."

With deals like that added to ongoing sales, businesses are hoping that it gives shoppers a reason not to go to Chetumal.

Michael Theus, GM - V Department Store
"So customers will have no reason to actually be traveling spending gas, paying to get their vehicle sprayed, they go across the border and then come back and might get charged at the border."

"So now they can actually stay here, save and spend more time with the family."

Umesh Mahitani, Mikado, Partner
"We have always been busy because I think people recognize that we always have better value and people come here and they get great service."

Reporter
"You have people coming from out district as well just to come and buy here."

Umesh Mahitani, Mikado, Partner
"Yes of course many of them just come here and then go back."

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