Dear Mr President,
I would like to start by letting you know that we as an Internet Service Provider do support VAT and that we understand the benefits of VAT to our country. However, after altering our prices for Internet services to reflect 16% VAT (which was previously non-taxed), we have now been faced with some serious implications.
The majority of our clients see dial-up services as an educational tool which now they cannot afford. Unlimited dial-up service which was previously sold for $6000 is now priced with 16% VAT at $6960.
Internet bandwidth in Guyana already carries a ridiculously heavy price from GT&T (compared to other countries and providers) and now to have tax placed on this commodity is only making it harder for both the Internet users and the resellers.
We are beginning to lose clients because of higher prices and as a result we feel that VAT will severely cripple the industry and affect ICT development in Guyana.
We ask, based on the current trend in this sector, that Internet services be zero-rated. This is in the direct effort to see growth and development in this industry and a closer reality of seeing the majority of Guyanese having Internet at their disposal.
Yours faithfully,
Girendra Persaud
TelsNet Inc
