Cheating or ignorance?

Despite several warnings and intense awareness campaigns by the authorities, shopkeepers continue to overcharge customers on VAT. This could be out of ignorance of rules, miscalculations or attempts to cheat the customers. According to customers, cold stores are the most culpable, which blatantly continue to overcharge their customers, flouting the rules and regulations with regard to VAT. “The minimum VAT, many of the cold stores charge is 50 or 25 fils.

Even if you buy something for 100 fils, you may have to pay a VAT of 50 fils. In their mind, charging 5 fils of VAT doesn’t make sense so they might as well grossly overcharge. Recently, I was charged 10 per cent VAT at a cold store when I purchased a pack cigarettes,” a Gudaibiya resident, who doesn’t want to be named, said. Supermarkets have also been making such blunders, said Tania Rebello, an expatriate.

“I picked up mostly groceries and I was surprised to see VAT for most of the items I bought. I was charged VAT for vegetables, fruits, meat and many other items that are VAT free,” she added. A purchase bill issued by a leading supermarket in Tubli went viral as it showed VAT being charged on many vegetables. Consumers have blamed the supermarket for the apparent injustice.