Economist Tarron Khemraj is in favour of enforcing a Common External Tariff (CET) on refined sugar imported into the Caribbean Community (CARICOM) and has rubbished arguments against the tax by local manufacturers.
“…the perceived negative impact of a CET is non-existent or very minor in the worst case…” he wrote in his column in the Sunday Stabroek yesterday. He also highlighted that the two local companies that utilise a significant amount of sweetener make “supernormal profits that no CET on processed sugar can shake.”
Last month, the Guyana Manufacturing and Services Association (GMSA) rejected a proposal floated to apply a 40 per cent CET to refined sugar entering CARICOM. In rejecting the proposal, the GMSA had warned that refined sugar-dependent companies could be forced to close and jobs could be lost. Among other things, the local manufacturers have also claimed that white sugar produced here could negatively impact the quality of their products.