Sunday Stabroek, August 6, 2006: ‘Not govt’s intention to have food prices increase because of VAT – Jagdeo.’ What happened between August 2006 and January 2007? Did someone forget what had been announced?
Here are a few of the price increases:
1 gallon rice $280-$320 $400
1 lb plantain 70 100-116
1 lb cassava 60 80
1 lb sweet potato 60-80 100
1 lb English potato 80 100-110
1 lb eddo 60 80
1 lb flour 65-70 70-80
So, let’s look at the zero-rated foods.
A supply of plain bread made with white or whole wheat flour, but not including all other bread such as French bread, Swiss bread and sweet bread;
raw white or brown rice, but not including all other rice such as basmati rice, converted rice, exotic species of rice, rice packaged with flavourings, or rice processed to allow quick cooking;
raw brown sugar; coconut, palm, corn, soy bean and peanut oil; cow’s milk and milk powder, but not including other milk such as flavoured milk; baby formula, but not including baby foods; fresh fruits, but not including apples, grapes, dates, prunes, peaches, plums, strawberries; fresh vegetables, including onions, garlic, potatoes, but not including olives, carrots radishes, broccoli, cauliflower; dried split peas, but not including other dried leguminous vegetables such as black eye peas, pigeon peas, chick peas (garbanzos).
A supply of fertilizers and a supply of pesticides are also zero-rated.
There is no mention of paddy or cargo rice, which is the most nutritious rice. Peanut oil is zero-rated but not peanut butter which is widely used.
In the above list of food items we search for proteins and see no meat products. Split peas are mentioned but black eye peas, pigeon peas and chick peas are excluded.
Consumers will be happy to note that meat, eggs and chick peas are now to be zero rated. But the demand persists for all food and health supplements to be zero rated. Consumers should note that the popular split peas lose some of their nutrients when split.
They should endeavour to include some of the protein foods in the daily diet. A cookbook explains the value of proteins.
“Proteins are the main constituents of flesh and blood and contain nitrogen which builds and repairs muscles and skin. Protein from animal sources is the best and most easily utilized by the body.
The second source, vegetable protein, though not as efficient, is less expensive and can be used more often. Sources of protein:
meat, fish, poultry, milk, milk products, eggs whole cereals, peas, beans, lentils, nuts.”
Other than food, care was taken to zero-rate computer parts, including ink cartridges. Only the UPS and stabilizer pay VAT.
A report was received that many items that were zero rated for Consumption Tax and were subject to a 10 per cent tax are now subject to 16 per cent VAT.
Here are some of the items which are in frequent demand – brush cutters, chainsaws, mist blowers, solar-powered items, woodworking equipment, planing machines. All items that were zero rated for Consumption Tax should be zero rated for VAT.
Consumers are requesting that all food items be zero rated.
Now that the VAT (Amendment) Bill has been passed, it is the hope of consumers that a careful study be made so that the number of severely undernourished consumers is not drastically increased.
Finally, consumers are puzzled at Fogarty’s Supermarket when they cash their purchases because zero-rated items are not separated from others. There may be problems at other supermarkets. Is it not possible to separate these items?
