-local business owners say in letter to President
A group of over 60 business owners across the country have written to President Irfaan Ali, complaining about the proliferation of non-naturalised Chinese-owned businesses that engage in unfair competition and their seeming of lack of regulatory certificates and licences.
“We are a consortium of Guyanese business owners and concerned citizens, comprising of about sixty-five (65) entities and individuals. We wish to express our serious apprehensions regarding the proliferation of non-naturalized Chinese owned businesses, predominantly supermarkets and hardware stores, throughout communities in Guyana,” stated a letter dated April 22, 2024 and signed by 49 business owners.
“These establishments often emerge in close proximity to our own businesses, and sometimes multiple similar Chinese stores are established on the same street. While we recognize and embrace healthy competition for the benefit of consumers, our primary concern pertains to the perceived lack of adherence by Chinese businesses to the same laws and regulations governing Guyanese enterprises,” the letter seen by Stabroek News, added.
Highlighted too was the fact that the Chinese businesses open beyond specified business hours.
Among the list of business owners were Parshu-ram and Govardhan Arjune of the Survival Supermar-ket and Survival Shopping Complex, Rajin Ganga of Bakewell, Dexter John of Home Everything, John Lewis Styles, Parmanand Persaud of Crown Mining Supplies, and Andrew’s Supermarket.
Concerned about the rapid proliferation of Chi-nese businesses, the letter posited that these, “Sug-gests significant capital investments” and they questioned if those entities are complying with Guy-ana’s anti-money laundering laws overseen by the Bank of Guyana regarding the influx of substantial funds.
It also asserted that many of the Chinese stores “fail to provide tax invoices automatically with purchases, and when requested, such invoices are begrudgingly provided.”
“Additionally, they neglect to display TIN on invoices, omit charging VAT on applicable items and abstain from listing product descriptions on invoices. Furthermore, there have been instances where consumers unknowingly purchased expired food items from these establishments, only to find no recourse for product support.”
The local business persons expressed the belief that these are flagrant breaches which have raised questions about accountability and concerns about oversight by the relevant authorities.
“While we refrain from premature conclusions, we cannot help speculate whether these non-naturalized Chinese business receive preferential treatment or special concessions. Thus, we seek clarification on this matter,” the letter said.
“The rapid expansion of these Chinese stores, fuelled by their ability to invest and develop at an accelerated pace compared to local businesses, coupled with their non-compliance with established norms and their capacity to offer products at significantly lower prices, poses an existential threat to the Guyanese business community,” the missive added.
The consortium is requesting a meeting with the President and if he is unavailable, they hope someone from his office could stand-in for him, so that the issue could be addressed promptly.
The list of concerns also questioned if the Chinese businesses are “complying with Guyana’s Anti-Money Laundering laws overseen by the Bank of Guyana regarding the influx of substantial funds.”
“What factors are driving the sudden surge of Chinese businesses across Guyana? Why is the regulatory environment allowing multiple similar Chinese stores to operate on the same street or within close proximity in communities? Many Chinese businesses accommodate a considerable number of Chinese employees within their premises. Are these businesses mandated to hire Guyanese workers, and if so, what percentage is required? Why are Chinese businesses not displaying their Taxpayers Identification Number (TIN) Certificates or printing their TIN on invoices as required by the Guyana Revenue Authority?” are some of the questions posed.
“Do all Chinese businesses possess the necessary licences and operate within Guyana’s legal framework, including adherence to building codes and permits, taxation and VAT regulations, labor laws, National Insurance Scheme (NIS) and Pay As You Earn (PAYE) requirements? Are Chinese businesses subjected to the same taxes and import duties as local businesses, or do they receive preferential treatment such as duty-free concession for their imports? … Are the zoning controls by the Central Housing and Planning strictly enforced to maintain orderly development within communities?” are other questions asked.
The business owners also asserted that “the rapid expansion of Chinese businesses may not reflect normal market competition but rather a strategy to undermine Guyanese businesses by diminishing their market share, potentially impacting those with financial obligations to lending institutions (e.g. loans and mortgages).”
The group hopes to have their concerns promptly addressed and resolved, adding that they consider it essential to safeguard the interests of the local business community and the livelihoods of all citizens.
“We expect immediate intervention to halt the rapid expansion of Chinese businesses and implement comprehensive government monitoring and regulation. This is essential to safeguard the interests of the local business community and the livelihoods of its citizens. It is imperative that Chinese businesses are held to the same laws and regulations as local businesses, ensuring a level playing field for all stakeholders”, the letter added.
The letter was issued under the rubric `Guyanese Businesses Owners Association’.
