VAT Corner

Dear Editor,

Whatever the motivation for zero rating split peas while retaining a consumer tariff on black-eye peas, the implicit associations with the ethnic usage of those products and their post VAT consumer costs should not be ignored or even discarded.

My understanding, and I might be wrong, is that VAT made the transition to black-eye peas because that product already attracted a consumption tax of 30%, while split peas did not. My question is, and I confess to being an ignoramus in these sorts of things, why was black-eye peas taxed in the first instance while split peas was not? I would have thought that since there is some degree of local cultivation of an agricultural product like black-eye peas, any administration dedicated to the goal of national self sufficiency would remove all impediments that might affect such endeavors. As a matter of fact I am amazed that this indefensible double standard in terms of priority given to dietary preferences that are clearly ethnic related, passes muster in a society ever ready to point fingers at imbalances of the past and present occurring in other areas. But then again, what else is new.

I read a piece posted in the Guyana Gazette online journal credited to PNC MP Tony Vieira in which he is alleged to have said: “Then we came to the black-eye peas and split peas story, ladies and gentlemen you have to understand that black-eyed peas cook-up is a black people thing, and split peas is an Indian thing, during the debate it became obvious that black-eyed peas would be subject to VAT but not split peas, so when Winston Murray spoke as lengthily and eloquently as he did on the matter and pointed out the racial dangers of zero rating one and not the other, the new Minister of Finance, who had my goodwill up to that point, informed the honorable house that all along black-eye peas was attracting a 30% consumption tax, whilst split peas was not subject to consumption taxes, and that we should celebrate since now we were only getting shafted with a 16 foot wood instead of the 30 ft wood we were getting all along”. If the facts as alleged here can be sustained, then the arrogance and sense of triumphalism emanating from the ruling elite is unprecedented and indeed frightening.

Look, black people make and eat roti, dholl, and other foods associated with our Indian cultural roots and vice versa. But if under the PNC these kinds of decision were taken they would not be seen or regarded as being race or ethnically neutral. And therein lies the hypocrisy that has become the order of the day for things political in Guyana. The PNC’s domination of media during their tenure in power, and when it consisted mainly of radio and newspapers, came under attack by opposition forces ranging from the PPP to the Catholic Church. The PPP’s increased dominance due to the additional development of State controlled video media does not attract a fraction of the kind of indignation then purported to be challenges to the undemocratic character resident in state control of media apparatus. Sure, there are private newspapers and television stations today. But when a town like Linden that voted overwhelmingly against the party in power is restricted to a source of information controlled by the said party they did not believe could serve their best interest, the existence of private media is symbolic, an illusion that substantive changes have occurred in the freeing up of access to information. Think about the claims of forcing Indians or Hindus away from their cultural traditions, if Linden was Port Mourant and the PNC was the Government of the day. Ya you ya me certainly is not the standard in vogue in our nation today.

Yours faithfully,

Robin Williams

Ram and

McRae

response:

The only VAT question raised is of a policy nature. The distinction between the two actually existed under the Consumption Tax Act (C/Tax) whereby split peas was zero-rated but black-eye peas was at 30%. Split peas is zero-rated for VAT while black-eye peas is standard rated.

The national statistics do not indicate the revenue derived from black-eye peas but it is not likely to be significant. The debate on VAT offered a review of the distinction.

Members of the public can submit questions on VAT in writing to Stabroek News at 46-47 Robb Street, Georgetown or by email at stabroeknews@stabroeknews.com.