VAT increase on electricity means an increased cost of living

Dear Editor,

In the area of electricity charges, the apparent attempt of the budget to assist the poor seems to have been undermined by the attachment of 14% VAT to electricity charges that exceed $10,000. (A similar observation is applicable to water charges.)

I hold the view that an increase in cost of either electricity, water or transportation may precipitate an increase in the cost of living.

Take a manufacturer ‒ let’s say, of furniture. Each use of the saw or other electrically driven tool sees a 14% increase in the cost of the electricity needed to produce that piece of furniture. How does the manufacturer compensate for this?

Increase the price of the completed furniture!

Yours faithfully,

Gavin A L Houston