Government and opposition should work together to remove VAT on food items

Dear Editor,

The cost of living in Guyana has soared to unprecedented levels, leaving many citizens struggling to make ends meet. With prices of essential goods and services on the rise, families are feeling the squeeze every time they visit the supermarket or head out for a meal. Amid this economic strain, the government’s continuing taxing food with a 14% Value Added Tax (VAT) only compounds the suffering of the most vulnerable in our society. It is time for a change. It is time for the government, led by President Irfaan Ali and the PPP, to recognize that Guyanese people cannot afford this additional burden. VAT on food is a tax on survival, and it is pushing families to the brink. While there are promises of cash grants and other forms of assistance, these gestures fall short of addressing the real issue — the skyrocketing cost of living. These grants, though well-intentioned, are insufficient and often only serve as a temporary fix, a band-aid for a much deeper wound. They are, unfortunately, more about securing votes for the next general and regional election than providing genuine relief.

When the government imposes VAT on food, it forces every person, regardless of their income level, to pay more for the basic sustenance they need to survive. Whether it’s bread, rice, or vegetables, the prices of everyday food items have continued to climb, making it harder for working-class families to feed themselves. The poor, the elderly, and those living paycheck to paycheck are the hardest hit by these increases. The 14% VAT on food is essentially a tax on poverty, one that punishes people for their inability to afford expensive alternatives. Fast food restaurants, which provide an affordable option for many Guyanese, are also not exempt from VAT. For those who are unable to cook at home due to time constraints or limited resources, fast food becomes a necessary option. But when VAT is applied to this already expensive option, it further reduces the purchasing power of citizens. It is a simple fact: the poor cannot keep up with the rising cost of living in Guyana, and this tax on food only exacerbates the situation.

Under the PPP government, we have seen grand speeches, plans, and promises, but little to no substantial action when it comes to easing the financial burden on ordinary Guyanese. The cash grants provided by the government are an insufficient response to the escalating cost of living. While a cash grant may help a family buy groceries for a week or two, it does nothing to address the root causes of the crisis — namely, the unrelenting increase in prices due to inflation, economic mismanagement, and policies that favour the rich over the poor. The people of Guyana deserve better than these short-term fixes. They deserve a government that is truly committed to improving their quality of life, not just pandering to them during election seasons. It is time for the PPP-led administration to show they care about the everyday struggles of the Guyanese people by removing VAT from all food items — both basic groceries and those offered in fast food establishments.

The removal of VAT on food would be a meaningful step towards alleviating the financial strain on households across the country. It would directly reduce the cost of living and help people stretch their limited incomes further. By removing this tax, the government would send a clear message that it is serious about helping the people who are most in need. Additionally, by taking such a step, the government would demonstrate that it understands the struggles of everyday citizens and is committed to supporting their well-being. This is not an unrealistic demand — it is an essential one. Guyana is a country rich in resources, and its people, especially the working-class and the poor, deserve to benefit from these resources rather than suffer under the weight of burdensome taxes.

The PPP government has shown it is capable of making bold moves; now it must make the right one. Removing VAT from food is not just a matter of economic policy; it is a matter of justice. It is a matter of showing that the lives of everyday Guyanese truly matter. I call on both the government and the opposition to put aside political differences and work together to remove VAT on all food items. This is not a partisan issue — this is an issue of survival for the people of Guyana. It is time for the government to show real leadership, and it is time for the people to hold their leaders accountable. The Guyanese people deserve better. We deserve a government that prioritizes the needs of the many, not just the few. We deserve to live with dignity, to be able to afford the food that sustains us, and to not be crushed by taxes that make survival an even greater struggle. It’s time to end VAT on food. For the sake of our people, it’s time for action.

Sincerely,

Pt. Ubraj Narine, JP, COA

Former Staff Sgt. (GDF), Mayor

City of Georgetown