Four days after the 16% Value Added Tax (VAT) was introduced a range of questionable practices continued amid widespread uncertainty and frustration among consumers and the head of the Georgetown Chamber acknowledged that there was confusion.
Many businesses continue to simply add 16% to their original prices without any adjusting for repealed taxes or the credit on stock for those who registered on time. One practice that was particularly disturbing, sources said, was the charging of VAT to unsuspecting consumers and the non-provision of receipts by the businesses. The VAT charged would then be pocketed by the businesses instead of remitted.
Stabroek News also put the question of manufacturers applying VAT to their old prices without adjustments to the President of the Guyana Manufacturers’ Services Association (GMSA), George Robinson.
Robinson, who is also a director at DDL told Stabroek News that senior level GMSA officials were out yesterday making checks at various members in relation to VAT-related issues. Robinson said that the findings by these senior officials will be discussed this morning and a further comment will be made on the issue.
Gerry Gouveia, President of the Georgetown Chamber of Commerce and Industry told Stabroek News that he is planning a walkabout on Monday to survey the VAT implementation process. He was also asked about businesses just applying VAT to their old prices and he said that there is a lot of concern about VAT and it is “causing a lot of confusion,” adding that it “certainly (has) proven to be a challenge.” A meeting was planned on Wednesday with GCCI members to discuss VAT but this was cancelled.
Though the GRA had said on Wednesday that charges would be pressed against three VAT-errant businesses there was no sign of this yesterday.
Yesterday, Stabroek News obtained a beverage price list from Banks DIH, detailing its old prices, the VAT and the price inclusive of VAT, and all the prices showed an increase.
For example, a case of 10 oz Coca Cola before VAT was $965.52 and with VAT this price is now $1,120; a case of Coca Cola
