Some retail stores will not be able to absorb the impact of the Social Responsibility Tax.

The National Social Responsibility Tax is officially now in effect since September 1 and one retailer is already warning customers to expect an increase in prices soon.

Just last month the Minister of Finance, Chris Sinckler, announced government will implement a two per cent levy on all imports which will go towards offsetting the cost of the public health care system.

Managing Director of Woolworth F&W CO. Martin Bryan spoke with Loop News where he noted the price increase should not affect existing stock in stores but will affect imports coming in over the next two weeks. He also said although the levy is set at two per cent, retailers might end up paying up to seven per cent in total in duties. “That [levy] will probably be a knock-on effect. I reckon it’s going to be anywhere between four to seven per cent. Some items attract various duties so the higher the duty, the more percentage it will be. So I am reckoning and it depends if it’s going to affect the suppliers as well. But two per cent is going to equate to between four and seven per cent by the time you put on the tax.”

Bryan also said retailers, himself included, were still in the dark as to how exactly the two percent levy will be applied to imports.

“It’s not even quite clear where the two per cent is going to be hitting either. So I don’t know if it is going to come after the duty has been put on or before the duty has been put on. Nothing has come official, to my knowledge we haven’t been notified.”

He said although it is unfortunate, his company will not be able to absorb any costs from the levy and customers can definitely expect an increase in prices of items.

“Customers can expect an increase across the board in every retail environment. That I can tell you because we have been absorbing and we certainly cannot absorb any more. The two per cent will be passed on.”

However economist, Jeremy Stephen advised Barbadians should not expect to pay more than 2.35 percent on items, noting that any drastic increase in prices means customers are being "fleeced".