Madden
With the January 1 implementation date for new tax measures nearing, some businesses are complaining that New Year's Day leaves them with too short notice to effectively prepare.
The new tax measures, which include a one per cent jump in GCT, to 17.5 per cent from 16.5 per cent, have caught some businesses off guard, suggesting that they will be having a long New Year's Day.
Sherry Luefong, manager of Glitter Accessories Limited in New Kingston, told The Gleaner yesterday that she has not had enough time to prepare for the new tax measures.
"I am not even ready, I am not thinking about that," she said. "I am open today, tomorrow, I will be open on Saturday. I can't fathom that right now, but I will have to go back and reprice everything."
Luefong said she would probably spend New Year's Day doing calculations.
Karl Patmore, manager of Patmore's Hardware and Lumber in Christiana, Manchester, said his company has not made any price adjustments and noted that his customers have been complaining about the impending increases.
"We can't do anything yet until the first. It is very overwhelming and we just have to wait until the first of the month," Patmore said.
PriceWaterhouseCoopers, commenting on the new tax measures, has described the timing as negative for businesses.
Little time to modify system
"From a practical point of view, the announcement just before the commencement of the Christmas holiday season of a GCT rate increase to be effective January 1, 2010, gives formal tax-compliant businesses little opportunity to modify their systems, pricing or documentation in order to comply with this new measure," the professional services firm declared in a report on the tax measures.
Ferdinand Madden Jr, CEO of Madden's Funeral Home and Crematorium, told The Gleaner that the increases will not have a devastating impact on his business as the chemicals, stretchers and embalming instruments his company uses are not replaced frequently. He, however, said his company would be adjusting its prices early in January, which would most likely result in a cut in its profits.
mark.beckford@gleanerjm.com