President Jagdeo’s relief package announced on Wednesday will be welcomed by many Guyanese who have been groaning under the weight of the rising cost of living, VAT and other impositions. But is it enough and are there structural weaknesses in the manner in which this ameliorative effort has been presented? The major benefit to the general public will be the plan to keep the price of baked goods at current levels not withstanding the flour price increases that have been announced by Namilco. In this respect the government says it has pursued discussions with 22 pre-approved bakeries which account for 95% of the country’s bakery products for the prices to remain the same and for the government to absorb the increased cost. Whether indeed those statistics will hold up is another matter. In the remote parts of this country and in which areas the indigent are too distant for their voices to be heard can the government be assured that its relief will also be felt there? Moreover, is the government in a position to rigidly monitor the pre-approved bakeries up and down the coast to ensure there is no profiteering or is this task the sole purview of the harried consumers?
In the launching of VAT in 2007, it had been argued that the government had badly missed the opportunity to assist consumers by having the stats bureau or the GRA do intensive data gathering to ensure that in the application of the 16% tax consumers were not being ripped off wittingly or unwittingly by businesses. In many cases initially, sixteen percent was simply added on to prices and this helped to pump up the inflation rate. Monitoring of the market is something that consumer organizations should do but unfortunately it is not the case here.
The government is also commendably making available 200,000 1-kg sacks of flour available at the old price. The flour relief measures will cost $200M and it is hoped that in time that wheat prices will retreat though there can be no certainty about this.
