For some time now, there have been calls for Government to respond to the rising cost of living. The ability of some Caribbean countries, which face the same challenges as we do, to find ways to ease their citizens’ burdens has served to intensify the calls.
For some time now, Bajans have, for the most part, taken the brunt of the high cost of living with no real affirmative action apart from social media rants and complaints on the call-in programmes.
For some time now, many felt as though the high prices at the pump, in the supermarket, on utility bills, etc. had no end in sight. The harsh reality of the economic struggle has been compounded by the fact that pay increases are near impossible given the blow that the COVID-19 pandemic dealt.
So when Prime Minister Mia Amor Mottley addressed the nation today on cost of living relief, many Bajans sighed in appreciation.
The PM herself knows it has not been an easy road, as she acknowledged: “There is no doubt that many Barbadian households are facing unprecedented pressure, not of their own, not created by our Government, our private sector, our manufacturers, our shopkeepers, or our farmers, but by individuals, corporate entities and governments over which we have no control or influence.”
The Government’s relief comes in four major planks.
For one, the Ministry of Education, Technical and Vocational Training will continue to provide lunches for all school-aged children throughout the summer holiday, from July 25 to September 2.
Secondly, the Ministry of Finance is offering electricity bill relief, with a reduction in the VAT rate on the first 250 kWh used to 7.5 per cent, while usage in excess of the 250 kWh will attract the regular VAT rate of 17.5 per cent. The data from Barbados Light and Power (BL&P) suggests that approximately 63 per cent of households in Barbados use 250 kWh or less and so those households will end up paying only 7.5 per cent VAT on their total electricity bill.
Additionally, the Ministry of Finance, through the Customs and Excise Department, will expand the list of essential food items on which no VAT will be charged.
Finally, local retailers will reduce their markup on 45 items to between 12 per cent and 15 per cent for six months, from July 21, 2022, to January 31, 2023.
Arguments can be made that it is not enough, or it is too little too late, but at this stage relief of any type is appreciated.
We are confident, too, that this is just the beginning, as we expect much of a political party that was ushered into office in 2018 under the slogan “Mia Cares”.
Prime Minister Mottley told Bajans that the only way to make it out of the current crisis which is affecting countries globally is to work together.
“How we make it through this period of crisis depends on the willingness of all of us to sacrifice for the benefit of the whole. Our history as a country shows that we have overcome challenges that seemed insurmountable before, through sacrifice which involves the many for the many and not the many for a few,” the PM said.
We thank all the voices that were part of the cry for relief over the past couple of months, agitating for something to be done. On behalf of a grateful nation, we thank the Prime Minister and her Government for acting on behalf of the people, which really is the definition of representation. We thank the private sector for coming on board and understanding the critical role they play in this process.
But for us, it does not end here today, as we expect more changes and adjustments in the future and more vigilance to ensure our people can endure this economic stranglehold with optimum ease.
