What has been your experience with the Value Added Tax (VAT) so far? We asked the man/woman in the street this question and this is what they had to say:
Tina McNeil, housewife – ‘I find that all the prices have gone up. I recently bought a washing basin for $1,500 and this same basin was $500 last year. The cost of pastries have also gone up, things like cherry brandy have increased. I use to purchase this particular product for $240 last year now I have to pay $440 at the supermarket for it. I don’t have a choice where buying things are concerned but I don’t have a lot of money.’
Flint, miner – ‘I have not experienced a lot with VAT so far. I work in the interior and I came out and I only recently purchased toothpaste and I was amazed that I had to pay $1,500 instead of the regular $900 that I would normally pay. This was Sensodyne toothpaste. I realized also that the tickets for a flight into the interior have increased because I use to spend $15,000 now I have to pay $17,400. I prefer the original price but I have to pay it since to travel by boat is out of the question for me because the boat only travels every two weeks.’
J. Daniels, housewife – ‘Some things have gone up. I see VAT as good and bad. For the everyday person it is bad. I have grandchildren in nursery school and they have to get snacks to take to school. What you find is that the price of potatoes has gone up. First I use to pay $90 per pound now it is $100. The price for onions too has increased. I have to buy the potatoes because sometimes I make French fries for the young ones. I don’t really understand how the VAT really works. The prices are the same plus 16% added to it. Simple things like perfume has an increased price, it’s so confusing. I find that only a few places are not charging VAT.’
Leslie Greaves, vendor – ‘VAT has not really affected me because I try to follow whatever has been set out by those in authority. I find that the price for channa has risen, but I don’t like to take on stress I try to go with the flow of things. I am always contented with whatever comes my way.’
Angeline Dyer-McCartney, teacher – ‘Well I find that sellers in the market are overpricing their items because they don’t fully understand what is VAT. I’m already paying tax on my salary and in the market I have to pay VAT and that is strenuous on my family. Persons in the market are not doing accurate calculations and it’s causing the poor to get poorer. I suggest that the 16% drop to 5% and that the threshold for workers be raised. Drop the VAT and raise the threshold that’s what I believe should be done. This I believe will assist with the cost of living. I find that the businesses are benefiting and they are the ones who will find a way around the system and will be robbing the ordinary man on the street.’
Quincy Hammond, self-employed – ‘I find that certain items have gone up. Things are hard right now with the price increases. Last year, milk powder could have been bought at $13,300 a bag but by December last year persons raised it to $16,000. This did not change and it has not gone down. This year with the VAT still the prices have not dropped and it’s the poor people who are feeling it. Only one set of persons are benefiting from it right now. I recommend that VAT go because it has not had a good start but I’m hearing people say to give it a few months.’
Trisha Singh, student – ‘I went to buy pampers for my son and I find that the price has risen. Last year I paid $600 for the large pampers and this year it has increased to $800. I don’t mind paying the difference but it does put a strain on the pockets. I do believe that businesses have a misconception about VAT and they need to be enlightened.
Andre Culbard, writer – ‘I don’t have a problem with VAT. But this is a poor country and it may not work here because the people are not aware. I find that certain prices in the small shops have jumped on certain things that are zero rated. Some places do not have a display for you to see what has VAT. The government needs to sensitise people a little more because it’s the consumers who will feel it and we should have been given more time to get acquainted.’
Philomena Joseph, public servant – ‘I find that the prices have not really changed. Some places are not showing the different prices where they add VAT. Some places you find will just give you a new price for an item and you have to pay. I believe that in three months we will understand what is going to happen. If the businesses do not drop their prices by then I think the Guyana Revenue Authority (GRA) should send more people to see what’s going on.’
Anand Persaud, sales representative – ‘I think that most prices are going up and it will benefit the businesses but it’s not good for the consumers. I’m concerned about the people who work with the government and have to pay 33 1/3% and when they come out on the road to shop they have to pay an additional 16%. This would be a lot of money coming out of their salary and going back to the government. It’s unfair. Some companies have dropped their prices but others have not. I believe the prices will be high for the next three months.