Tourism and Commerce Minister Manniram Prashad is unsure whether increased taxes on alcoholic beverages would lead to a reduction in local consumption thereby reducing the high rates of suicide and domestic violence in the country.
“I don’t know, I don’t know if it would work. Right now, I think, basically, the tax that they have on the alcohol products, I think… it’s not a matter if you put too much tax it would stop people from drinking,” Prashad said, while adding that he could not comment on the financial aspect of it.
He was at the time responding to questions during an informal press conference on Monday at the International Conference Centre.
“There has to be a balance, because the industry provides a lot of employment also. So you have to make sure it is taxed fairly and it is consistent in keeping with the government initiative,” Prashad added.
He said too that Guyana’s rum is of a high quality and that many persons coming to the country look forward to consuming this. “Guyana is known for its rum, we’ve got the best rum in the world and we want to maintain that standard and quality. So I would support the rum industry,” the minister said.
He, however, declined to pronounce definitively on the connection between alcohol consumption and the high rates of domestic violence and suicide.
Recently Health Minister Dr Leslie Ramsammy said that there is need for higher taxation on alcohol products given the debilitating effects that abuse had on the country’s economy, health and social services.
“…I would forever want to be on record as asking for even more taxes [on alcohol products] and this is the balance we make between looking at health and looking at economic concerns,” the minister said.
Ramsammy described higher taxation on alcohol products as a “trouble area” since high taxes are already being paid on such products. He said while companies which produce alcoholic beverages would always argue that their products are already heavily taxed, it was up to the Ministry of Finance to balance such concerns with health concerns.
