The flare-up over the Value Added Tax (VAT) between the private sector and the GRA subsided somewhat yesterday following a meeting between the two but the Georgetown Chamber also signalled it would seek an urgent audience with the Finance Minister to end the VAT “chaos” and bring relief to consumers.
According to a Chamber statement yesterday following the meeting, the Guyana Revenue Authority (GRA) has agreed to reconsider the decision to file charges against Muneshwer’s Ltd and NP Department Store for alleged VAT invoicing violations.
And in its own press statement issued after the two-hour meeting, the GRA admitted that prices of items which previously attracted a 10% consumption tax (c-tax) will increase. The meeting, which saw participation by Commissioner General of the GRA Khurshid Sattaur and staff, and representatives of the Georgetown Chamber of Commerce and Industry (GCCI) and the Private Sector Commission (PSC), was held at the GCCI headquarters yesterday.
“GRA wishes to put on record that the VAT implementation process has encountered glitches that are preventing its successful implementation. Until [these glitches can be overcome], the public will not benefit entirely from lower prices which will accompany the VAT. There are some items that are also likely to be more expensive since VAT, at the rate of 16%, replaces taxes that were charged previously at the rate of 10%,” the GRA said in its statement. Consumers are now faced with higher prices for items such as meat, matches, salt, table napkins, flavoured milk, margarine, paper towels and soaps and detergent all of which previously attracted no c-tax and sardines which attracted 10% c-tax.
Household items like carpets, electrical appliances, furniture, wigs and cosmetics attracted 30% c-tax and are expected to be cheaper. Imported mixed vegetables, tomato paste and imported vegetables like broccoli will be cheaper as well.
According to the GRA: “Members of the private sector bodies reiterated their commitment to the introduction of the VAT but expressed concern over their ability to reduce the price of products which were imported prior to December and items previously attracting 10% and less consumption tax.”
However, as consumers face increased prices at the shops and supermarkets the GRA reiterated that the government’s stock relief for December stock was intended to relieve the impact on consumers. “The government’s decision
