Dear Editor,
I shopped at a supermarket (name given) and bought a similar basket of items that I buy there every week. I compared my bill with that of December’s weekly bills and not to my surprise found that I had paid $1,757.44 in VAT on exactly the same priced goods that I had bought in December 2006. For example, one tub of butter that I had paid $350 for in December cost me $406 today! I rang the supermarket and spoke with a man (who asked me not to publish his name) who explained that despite various attempts by the staff at the supermarket to enlist the support of the VAT office to come and discuss their inventory position and agree an adjustment on it, they had been unable to do so. It was also explained to me that the supermarket had paid consumption tax of 30% on the current items in stock prior to 1st January 2007 but had no choice but to pass on to the consumer the burden of 16% VAT until their consumption taxed stocks were exhausted. That would take about 1-2 months.
It occurred to me that a simple method of assessing all of the stock on hand (which is inventoried in any event with a supermarket database) could have been arranged by the VAT office prior to 1st January 2007 with the supermarket and a discount by government of 16% allowed in the first two months of the trading year. I am quite certain that their stock was assessed at year end for accounting purposes, in any event.
However, despite government assurances that the consumer would not be affected pricewise with the introduction of VAT in Guyana, my shopping bill increased by 16% today!
I shall avoid shopping at this supermarket until their prices are adjusted to the previous position in December or I am assured that the VAT paid by me would be refunded by the VAT office.
Yours faithfully,
Heather Martins