Minister of Labour Manzoor Nadir says consumers have the power to influence market prices and can ensure that the unscrupulous actions of some businesses do not affect the cost-of-living due to the implementation of the value-added tax (VAT).
Nadir made this comment to residents at Canal Number Two Polder, West Bank Demerara during a Cabinet outreach exercise on Friday, a Government Information Agency (GINA) press release said. GINA said Nadir and Minister of Housing and Water Harry Narine Nawbatt participated in an outreach exercise to the region which was geared towards educating and sensitising the residents on the mechanics of the VAT.
GINA said since the implementation of VAT the cost of some items have increased, “mainly as a result of some businesses calculating 16 percent VAT on prices which already include the Consumption Tax (C-Tax).” The Private Sector Commission (PSC) has argued that this practice is the only way that businesses can recoup the C-Tax paid on goods acquired prior to December 2006. Additionally, reports have indicated that some businesses were charging VAT on zero-rated items while others were unfairly inflating their prices and charging VAT although they were not registered to do so.
On Saturday, President Bharrat Jagdeo said that this issue will be addressed and that government “will review the situation and next week we probably will be making some adjustments.” Jagdeo said from the beginning that government had planned to “monitor its implementation until we have a functioning system that does not bring too much burden on the consuming public.” These adjustments are likely to be signalled in an amendment bill to be presented in Parliament today. Also, on Saturday, Commissioner General at the Guyana Revenue Authority Khurshid Sattaur, in a statement, urged the PSC to take time to study “not only the system of taxation pertaining to VAT, but also
