Speaking during a recent broadcast on Star Radio, former Finance Minister Camilo Gonsalves challenged the current government’s handling and public presentation of cost-of-living relief measures, taking particular aim at the recent announcements regarding the Customs Service Charge (CSC).
Gonsalves criticized the government for utilizing linguistic “salesmanship” to make their relief efforts appear far more substantial than they actually are. He specifically targeted the political rhetoric surrounding the supposed “100% removal” of the CSC.
While acknowledging that a lot of public chatter has been generated by the promise to reduce the charge by 100%, Gonsalves pointed out a crucial omission in the government’s messaging: no one told the public what the actual baseline charge was.
“Customs service charge is 5%. That’s what it is,” Gonsalves explained, noting that taking off 100% of the CSC only equates to a 5% overall discount for consumers, leaving 95% of the costs intact.
He warned that this framing is dangerous for public trust. When citizens hear about a “100% removal,” they expect massive price drops at the supermarket. When shoppers ultimately realize that the product is almost the exact same expense, they feel deceived or given “mama guy” (manipulated).
To maintain public trust, Gonsalves advised the government to communicate transparently. “If you’re taking off a 5%, tell them people you’re taking off a 5%,” he stated, adding that citizens would still appreciate the modest help without feeling misled.
Beyond the framing of the tax cut, Gonsalves also argued that waiving the CSC is an unoriginal policy borrowed from the previous Unity Labour Party (ULP) administration.
He noted that the current Prime Minister recently announced a waiver of the CSC on fuel imported by Vinlec as if it were a brand-new initiative. However, Gonsalves highlighted that this exact waiver was featured in the previous ULP administration’s playbook and had already been utilized in the past to pass savings on to consumers.
Gonsalves pointed out the irony in the current government’s approach. He recalled that when the current Prime Minister served as Leader of the Opposition in 2023, he heavily criticized the previous administration for being “out of touch” with rising prices and demanded a five-point action plan that included reducing the very same Customs Service Charge that is now being touted as a new solution.