There is widespread opposition to the VAT resulting in the government taking a severe beating in popularity according to the findings of an opinion survey conducted by the North American Caribbean Teachers Association (NACTA) last week.
Throughout the country, people are criticising the VAT so much so that it is having a negative effect on the rating of the government and the popularity of President Bharrat Jagdeo. It is described as anti-working class and anti-poor.
Some PPP supporters say it is against the principles on which their party was founded. In general, people feel that the 16% VAT rate is too high and is directly responsible for inflation (increasing prices) and they want the government to take immediate action such as reducing or altogether eliminating VAT to cushion the population against rising prices for basic goods.
NACTA is a New York-based organization that has been conducting polls in the Caribbean for almost 20 years. Last week’s poll on current issues was coordinated by Vishnu Bisram. The survey interviewed 890 individuals to represent the diversity of the population.
Although the entire world is feeling the effects of the global food crisis and rising fuel costs, almost every person interviewed in Guyana blames the VAT for rising prices.
According to the findings of the survey, the overwhelming majority of the population disapproves of the VAT saying it has raised the cost of living.
People complained that they were told that the VAT would lower the cost of living but instead their bills have gone up while their salary has not increased to meet the rising cost of living.
Asked if they think VAT has raised the cost of living, 74% said yes with 12% saying no and 14% saying they are not sure.
People are angry about the VAT and feel government should take measures to curb food prices. Most of the respondents of the survey say they don’t want to hear that rising fuel prices and global food shortages are the main culprits behind rising prices worldwide. Many of them complain that they can barely make ends meet with their low salary and they say that VAT has increased the costs of their purchases.
Many respondents feel that the implementation of a relatively high VAT gives the impression of an uncaring government for the poorer class. They want economic relief so they can afford basic items with their stagnant salary.
They feel government should institute a programme of subsidies for basic items as well as to zero rate basic home construction materials.
Farmers are also among the complainants saying the government should offer subsidies for fertilizers and seeds to cut the costs of food production as well as to provide incentives to grow more food. People feel government should conduct an investigation on how VAT is affecting the population and take appropriate actions to alleviate its impact on the nation, especially the working class.
NACTA also interviewed the population on their preference for a potential successor to President Jagdeo when he demits office in three years. The findings will be presented in a subsequent report.
