APNU leader, David Granger says that the coalition would prefer to see action from the government rather than just talk about setting up a Depressed Community Fund.
Granger said that APNU is in support of such a Fund but wants to see action. Granger, in a televised statement on Saturday had said that government had made no firm commitment on this. President Donald Ramotar said in an address to the nation on Friday that his administration and APNU had agreed to the creation of a Depressed Community Fund and proposed its funding of over $2 billion for 2012 through an allocation of 1% of VAT revenue collections in 2011.
AFC Chairman, Khemraj Ramjattan said that the AFC has heard about this fund but believes that the population would be better served by a cut in the 16% Value Added Tax (VAT) rate.
He said that such a fund would create another level of bureaucracy and he believes that the government would staff the Fund with its supporters and only select people would be able to benefit. The entire population would be better served by a cut in VAT, he said.
On the issue of reducing the VAT, Ramotar had said that the government believes that a study was needed before any action is taken but the administration is open to extending the list of zero-rated items. “This we believe is a more targeted way to assist persons considered to be low income earners,” he said.
