Consumer Concerns

The poor are always with us. In Guyana we are very conscious of the fact that many of our consumers are living from hand to mouth. The poor have large families and being kindhearted are prone to assist others who may also be in need. Other consumers who may be in receipt of regular incomes find their take-home pay not enough to allow for savings. So there is no cushion to meet the cost of VAT.

Before VAT these consumers were not subject to direct taxes. I suggest that all receipts showing VAT payments should be kept safely and a note made of other VAT costs so that at the end of the month we may all have a good idea of the VAT cost.

There will be a problem in the Rupununi as no receipts are given when purchases are made. We saw in the Stabroek News of January 16 that VAT was moving slowly to Lethem. That was also the report that I received, Intraserv which provides a bus service to Lethem has added VAT to its fare. The fare has moved from $9,000 to $10,440. The cheaper bus service has not included VAT.

How will VAT ever be introduced in this district which is almost an island to itself with small communities spread for miles around the central town of Lethem? How will consumers be trained to ask for receipts? Everyone knows that the indigenous communities are the poorest of the poor, that essential items of food are already far more costly than in Georgetown because of the transportation costs. Surely this should be a special case!

The North West District is also an area that is marooned from the main business areas, but may be in a better position with food supplies because of its trade with Venezuela. Recently, a member of the indigenous community was attempting to spread an interest in farming but this is too late to give relief if VAT is demanded in that area. There is a limited telephone service to North West District.

On the Essequibo Coast VAT has been introduced, but the circulation of money is limited. A report was received that in the Pomeroon area business people are charging VAT on every sale. For instance, VAT was charged on gasoline and on Fernleaf milk. The Neighbourhood Development Councils were pleading for more information on VAT. Consumers are surely being robbed in many areas that are distant from Georgetown.

Consumers in New Amsterdam and Berbice are endeavouring to recover from the impact of VAT on their lives. The same applies to Georgetown, where they were led to believe that VAT would not increase food prices or the cost of living and that the only change expected was a downward drop in most prices. Now that it has been proved otherwise, we await the adjustments that the President has promised to introduce. Is there going to be consultation with women’s groups, such as Red Thread, or are the changes going to be recommended by those who are well off and are not disturbed by the extra cost in food prices?

It was disturbing to learn at Fogarty’s Supermarket that there is a VAT tax on margarine. Is margarine not a product that is widely used by the poor? It was also disturbing to me, as a senior citizen, to learn that supplements in pharmacies are subject to VAT. Vitamins are necessary for persons whose diet is not particularly varied. Vitamin B is also recommended for those with mental problems. Supplements and health foods should be zero-rated.

At Fogarty’s Supermarket, cashiers list all goods purchased and do not separate the zero-rated items from the others. We learn that the computers are programmed to exclude zero-rated goods when calculating the VAT tax to be paid. But there is no asterisk or other mark against the zero-rated items to inform the consumer that these are the items that are not included in VAT.

It is predicted that the revenue collection will escalate under VAT. It is hoped that provision will be made for relief to the poor and critically poor when the money rolls in. Some of the critically poor are survivors of former employees with the government and there is no indication that they will be provided with pensions large enough to save them from starvation, although there are millions of dollars kept in the Treasury for the fund. These pensioners must rely on family and friends for meals.

Computers are zero-rated and so are toners and cartridges for computers. VAT is payable to the Internet Service Provider (ISP); GT&T charges to the ISPs are colossal. It is hoped that they will absorb the VAT as a corporate social responsibility.