Dear Editor,
The letter columns of the Guyana Chronicle are usually infested with letters defending the Government and in the edition of 18/3/2008 there were two in relation to VAT which show how little the defenders really know.
Both Alicia Griffith and the Concerned Consumer have sought to blindly endorse the sentiments of other even more prominent persons in relation to an increase in bread prices by Bakewell. Let me get straight to the point – when flour was standard rated (and let’s assume the price was $100 + VAT of $16), the bakery would have received a $16 refund from the GRA so its price of flour would have been $100. Despite the fact that flour has been zero-rated, the price of the commodity has increased and in our example is now $116 (Alicia Griffith wants to boycott Namilco too so she knows there has been a price increase). The GRA is not going to refund anything to the bakery and therefore its cost of flour has increased by 16%. Is it not common sense that the price of bread will increase.
Yours faithfully,
(name and address supplied)
