High prices by businesses continuing to affect consumers: February 5, 2007
Commissioner–General of the Guyana Revenue Authority (GRA) Mr. Khurshid Sattaur and Minister of Agriculture Robert Persaud today met sugar workers of the Uitvlugt Estate and other residents of the Uitvlugt community to discuss the Value Added Tax (VAT) implementation.

Workers complained about the indiscriminate prices by most businesses in the region, pointing out that even the prices of items that are zero-rated under the VAT law have increased. 

Mr. Sattaur pointed out that the introduction of VAT was never intended to bring hardship on consumers. He noted that the indiscriminate prices by some businesses are clearly intended to exploit consumers by taking advantage of this period to make greater profits.

Consumers complained that many businesses on the West Coast of Demerara are not issuing receipts for purchases.

Persons complained that they were often given the option of a receipt and paying VAT or no receipt and not paying VAT. They said too that many times when they asked too many questions the shop keepers refused to sell them.

Responding to increased prices by small businesses also on zero-rated items, Minister Persaud said that from this weekend trucks from the New Guyana Marketing Corporation (NGMC) will visit the Region with essential food items.

He said with this persistence, it is expected that businesses will be forced to lower their prices since businesses cannot take all of their goods for their personal use and since, food products especially, have a limited shelf-life. 

This is reflective of acts by some prominent businesses in the city as well. The GRA is advising businesses that are involved in such unscrupulous acts to take the necessary corrective actions within the earliest possible time.

The GRA states categorically that it will enforce the law to its fullest capacity since it believes that this is the only way to ensure justice is meted out to consumers.

Notwithstanding those malicious practices by some businesses, the GRA is heartened by the adjustments made by some businesses reflected in lower prices and in some cases, stable prices.

He commends those businesses that “have begun to make the change to those items that were previously taxed at a 30 percent rate under the Consumption tax and are now taxed at 16 percent under the VAT.”

“These businesses have certainly seen the benefits of VAT and as a result have begun to pass on the benefits to their customers,” Sattaur said.

The GRA encourages other businesses to emulate such practices so that consumers on the whole will begin to benefit from the VAT shortly. The GRA maintains that the VAT will contribute to a modern tax system and improvement in the lives of Guyanese.

Meanwhile the GRA continues its training for VAT registrants, targeting businesses on the Essequibo Coast tomorrow, February 6, 2007. There will also be discussions with the general public during the three-day outreach to the region.