`The reality is that poor consumers can’t cope’

The Clerical and Commercial Workers’ Union (CCWU) and the Union of Agricultural and Allied Workers (UAAW) recently brought a number of concerns regarding the Value Added Tax (VAT) to the attention of the VAT Commissioner.

The CCWU in press release said that the unions had requested separate meetings with the Finance Minister to discuss problems facing their members and consumers in relation to VAT, but they were referred to the VAT Commissioner.

Both unions, said the release, had a joint meeting on September 20 with the VAT Commissioner and a team of officials from the VAT Unit.

“The unions pointed out that their recent delegates’ conferences passed motions calling for a review of VAT in order to relieve the burden of its members and consumers generally,” said CCWU in the release.

“Since the implementation of VAT,” the union said, “prices of goods and services have skyrocketed thereby making it extremely difficult for the poor consumers to make ends meet.

The VAT officials explained, according to the release, that it was some members of the business community who chose to exploit the implementation of VAT and prices of goods and services should either be stabilized or considerably reduced. VAT officials gave examples to support their contention.

“However, the unionists contended that the reality is that the poor consumers can’t cope with what is going on, and further, that the VAT Commissioner must impress upon the policy makers the urgent need to put things in place to ensure a return to normalcy in prices.”

The union also called for the reduction of VAT citing the intake of revenue from the tax being way above government’s projection.

But the VAT Commissioner called on the unions to help educate consumers on how the VAT should work to their benefit and promised to convey the unions’ suggestions to the government.