The PNCR says the Value Added Tax (VAT) has contributed immensely to the high cost of living, citing what is said was a higher correlation between the two, rather than the worldwide increase in food prices.

Party executive Aubrey Norton, at a press conference yesterday, said that on the eve of the tax’s introduction, government had argued that the 16% tax would be revenue neutral.

However, it had garnered more than $30 billion, which suggests that that argument had no basis.

He acknowledged though that there was an increase in food prices worldwide.

He said his party was not against the actual tax system but the way it was implemented and the percentage.

Norton said VAT had created a windfall for the government but has been a burden for the Guyanese people.

“It must be reduced to at least 8% so that the Guyanese people can enjoy a measure of relief,” Norton suggested.

He said while the increase in the income tax threshold and the special fund for single parents and pensioners were welcome, they were not sufficient to address the overall problems of ensuring that Guyanese could cope with the rapidly rising cost of living.

The party also presented a list of the basic food items and their cost.

According to that list, items like milk, garlic and onions have doubled in price after being subject to VAT.

Additional items like cheese, eschallot, and some vegetables had sky-rocketing prices, forcing the ordinary man to do without these commodities.

Norton said it was clear that the prices of most of the basic items were increasing rapidly and this was likely to put great pressure on the budgets of the average Guyanese. He said urgent measures were required to bring down the cost of living.

He suggested that the first step in this regard should be the reduction of VAT.