Dear Editor,
In light of the recent 2017 Budget announcement by Finance Minister Winston Jordan, of the 14% Value Added Tax which will be imposed on water and electricity (two basic human needs), the Bartica Chamber of Commerce and Industry (BCCI) urges the government to rethink the decision and review the 2017 Budget with haste.
The Finance Minister must be commended for an early budget and a promise to have the 16% VAT reduced to 14%; however, more questions than answers remain. BCCI views the 2017 Budget as a ‘monster’ budget and believes that a fully loaded cart was put before the horse. BCCI would like to have justification from the government for the poor decision of the proposed implementation of 14% VAT on water and electricity.
Bartica’s economy remains in a coma due to falling gold prices, and presently residents and businesses alike are experiencing financial hardships as Barticians depend solely on mining. The business community is experiencing a slowdown. No economic activity is taking place now and with the recent announcement of 14% VAT on water and electricity this will be seen as the government and the merchants attending the funeral of the poor. The measures outlined in the budget will affect the ordinary man and businesses here, as the merchants will pass on the increases to the poor.
The hospitality and food industry in Bartica will be greatly affected by the proposed 14% VAT.
The living standards of residents of Bartica will be greatly affected as most of the 15000 population pays more than $10000 and $1500 per month on electricity and water respectively, and will now be forced to make ornaments of the electrical appliances in their homes. For example, if one has a microwave, iron or fan they will avoid using these household appliances out of fear of a monstrous light bill exceeding $10,000 per month. On the other hand, for those residents who do not yet own a microwave, iron or fan they will now think twice about purchasing same.
The BCCI also urges the government to consider exempting miners from the ban on used tyres as we view the requirement of only new tyres to apply to new, well maintained and standard roads. Miners using ATVs, cruisers and trucks will no doubt feel the squeeze of maintaining their vehicles. With new tyres on vehicles and bad and unacceptable conditions on the roads leading into the interior, the cost of transporting goods and services there will skyrocket. Not forgetting too that taxi fares and public transportation costs will also increase. Where does that leave the poor?
The hopes of the poor and entrepreneurs of elevating their economic status and standards of living have been shattered by the announcement of the proposed 14% VAT on water and electricity.
Yours faithfully,
Sherwyn Delano Downer
Spokesman
BCCI
