Dear Editor,
When analyzing any situation it is best for one to step back and look at the big picture. Looking at the big picture and considering the items facing VAT, it is easy to realize that VAT is introduced in order to influence the spending habits of Guyanese. It is a fact that Guyanese spend too much on items they have little or no need for. One example is the recent cell-phone boom, nowadays you will even find a beggar with a cell phone. Guyanese need to consider the benefits of spending wisely – not only as individuals but as a country.
It is simple economics – if one spends more than he earns he will become bankrupt, he needs to spend wisely and to save for hard times. In the same way if a country spends more than it earns that country will become bankrupt. This was one of the primary reasons why Mr. Forbes Burnham placed controls on imported items, he wanted the country to become self-sufficient and to spend less and save more. At that time the majority of the people did not understand the reason behind what he did, but if they did understand, and had made the sacrifices and supported and maintained his move Guyana would have been on top today.
Nothing happens over-night, it will take time and a lot of sacrifices. We need to carefully consider our needs and our wants and to have a clear priority between the two. I do feel that the Government can do more for the country. Two immediate recommendations would be for the government to take care of the leaks in their administration and for them to reform tax policies for local businesses and private individuals. I do find the 45% tax on local commercial businesses to be too high.
Yours faithfully,
Girendra Persaud
