Dear Editor,
A lot seems to be going wrong with the implementation of VAT. Hopefully this is just initial teething problems. I remembered in the early part of last year at the Georgetown Chamber of Commerce and Industry where there was a workshop with the VAT team I asked the important question “How will the end of year stock be treated”, recognizing that this stock would have already attracted consumption taxes and duty. The answer given is that they are looking into it.
Subsequently prior to elections I remembered reading several letters to the editor from particularly females asking the question about zero rated food items. These persons inclusive of the masses were given the assurance that with VAT coming on stream the prices on food items would go down. I still need to peruse the old Customs Tariff and Consumption Tax Act to see what are the items that attracted 16% consumption tax and over and what attracted less than 16% to be clearly guided on what items should go down with the new systems of taxation. We must keep in mind that a percentage on a lower cost will always be smaller against the one on a higher cost.
I would like to commend publicly Mr Ovid Holder and Mr Lloyd Austin for their proactive approach on appealing for zero rated items on books. To you two gentlemen I extend on behalf of the people of Guyana our sincere gratitude for your lobbying efforts to bring relief to persons who would like to develop their children and their own literacy levels. I was deeply disappointed with the publicity campaign stating that educational materials are zero rated. I was shocked when I bought a copy of the Tax Act (Amendment) to see in bold stark letters that the zero rating is only applied to books, colouring books, drawing books, pencils, sharpeners and a few other miscellaneous items that generally are low in cost and probably attracted low consumption or nil consumption taxes in the past. The information disseminated re: educational materials being zero rated led to widespread confusion as persons deem these materials as any item related to schools and school supplies. The bold heading was really nice but the fine writing below listed just a few items which other than books are negligible in cost to consumers.
I really do hope that the initial VAT implementation problems will be resolved and there would be continuous dialogue between the Guyana Revenue Authority and the business community. That the consumers are given information that is clear. That the GRA/Vat team works along with the registered businesses as in this process of collection of government taxes business people are now the unpaid workers of the Guyana Revenue Authority and the Government of Guyana. There is always need to treat our workers with respect and appreciation. We can get a lot out of them when this is done.
I do hope that the IMF is now satisfied that what they were pressuring our government to do over five years ago “The Implementation of VAT” has finally been achieved. I hope that whatever was promised to our government they will now release same. I read their Matrix on Guyana a few years ago and recognized most relevant economic decisions that were made by our government were based on their subtle bullyism. Do what I want or I will not give you what you want. I encourage every Guyanese who has access to the internet to visit the IMF website. I really do hope that we will in future do a review of all that has been done due to their recommendation and see whether it really did make sense.
Yours faithfully,
Karen Bacchus
