Yesterday, even as some city businesses were complying fully with the new list of Value Added Tax (VAT) zero-rated items, others lagged behind.
At Survival Supermarket on Vlissengen Road yesterday, the old list of zero-rated items was still posted, but one of the cashiers assured this newspaper that credit was being given for all of the new zero-rated items. And this was indeed the case.
Stabroek News inspected the shopping bill of a customer which included toilet paper, sanitary napkins, black-eye peas, toothpaste and meats, and they were zero rated. This shopper said she decided to shop at Survival because the place where she previously did her shopping did not show the VAT being charged per item.
At Guyana Stores Supermarket, one cashier said VAT was still being charged on items like toilet paper, toothpaste, black-eye peas and sanitary napkins. When advised that a new list of zero-rated items had been unveiled, the employee said she had not been informed and pulled out a book showing the previously zero rated items.
At N & S Mattai & Co, Water Street, there were signs posted all over with the new list of zero-rated items as well as the old one.
Bounty Meat Centre on Regent Street did its best to notify the public that local meats are now zero rated by posting same on its glass doors as well as around the store. It also displayed the prices of the items being charged VAT at the standard rate of 16% – by showing the VAT calculations and the VAT inclusive and exclusive prices. This reporter inquired if VAT was being charged on toothpaste and upon checking, the cashier said the computer was not yet configured to show that VAT was removed from this item.
Meat producers like Bounty Farm Ltd, Didco Trading Company and C&F Supermarket had all experienced declining sales since the implementation of VAT.
Bounty Farm Ltd Manager Patrick DeGroot told Stabroek News last week, after the government announced its intention to remove VAT from all uncooked local meats, that the decision would revive sales significantly.
Finance Minister Dr Ashni Singh on Friday evening announced the new zero-rated items, based on new powers given to him under the VAT (Amendment ) Act 2007 passed last week. This Act repealed Section 98 of the Principal Act and re-enacted it thus: “The minister may by order, subject to negative resolution of the National Assembly, amend Schedules 1 and 11,” of the VAT Act that deals with zero-rated and exempt items respectively.
The amendment also states that the minister may by order, subject to affirmative resolution of the National Assembly – (a) increase or decrease any monetary amount set out in this Act and (b) amend Schedules 111, 1V and V. The order for the additional 40 zero-rated items was gazetted on Saturday and became effective from yesterday.
New zero-rated items include cooking oil, margarine, cooking salt, unflavoured crackers, matches, soap power, dish washing liquid and locally produced garments. Persons can see the full list of the new zero rated items on page 16 of the January 27 edition of Stabroek News. Previously zero-rated items include, rice, sugar, potatoes, milk, onion, garlic, split peas and bread. (Nicosia Smith)
