Dear Editor,
Many writers, including myself, have written in the past about Value Added Tax (VAT) and attributed rising prices of food commodities to VAT.
The interview on “Close-up” given by Minister of Finance, Dr Ashni Singh and Minister of Agriculture, Mr Robert Persaud, has shed some new light on VAT. Both Dr Singh and Mr Persaud have made a convincing argument that the high cost of living is not caused by the government’s implementation of VAT but rather by the rising cost of fuel and other factors. Additionally, Dr Singh stated that a number of basic items such as food, agricultural products, inputs to certain critical sectors such as health and education, have been zero-rated.
While Dr Singh and Mr Persaud’s comments are well intended and received, the reality of the situation is that the wages of the average Guyanese are such that even a basic standard of living cannot be maintained given PAYE and NIS commitments.
Guyana is moving ahead and much progress has been made in terms of infrastructure and overall development that makes Guyanese proud. While we cannot expect government to solve all the problems, the wages of the average Guyanese need to be addressed and plans implemented to reduce the financial pressures.
Yours faithfully,
Anand Persaud
