Increases in the price of meat due to VAT have seen consumers cutting back on purchases and producers are worried as sales fall.
Chairman of John Fernandes Ltd, Christopher Fernandes said sales of locally produced meat – fish, chicken, pork and beef – at that company’s subsidiary Bounty Meat Centre have plummeted.
The cost of production has remained the same, Fernandes explained to Stabroek News, but the application of the 16% VAT has increased the cost of chicken to the consumer. This 16% tax doesn’t go to the retailer but has to be remitted to the Guyana Revenue Authority. Many consumers have apparently not understood this and have berated retailers over the fact that they have to pay the 16%. Previously, chicken was not subject to consumption tax (c-tax). While the government has zero rated poultry feed, previously there was no tax on poultry feed either.
Fernandes contended that the focus on locally produced items “is really something that is missing
