Let’s hurry and iron out the kinks
The controversy continues over the implementation of VAT.
Editorial
Guyana Chronicle
January 11, 2007
And while efforts are being made by the Guyana Revenue Authority (GRA) to resolve the stinging problems that have arisen, consumers have been at the mercy of businesses, forking out extra dollars to pay for various commodities, especially after coming out of a holiday season which leaves most persons “broke.’
From all that has been happening over the past few days, it is clear that the education and sensitisation programme carried out by the GRA was not as effective as it could have been, and did not fully prepare the business community for the implementation of the new tax.
This should be another lesson for Guyanese: in order to successfully implement anything new, the necessary groundwork has to be done.
One prominent businessman who is very supportive of VAT observed that Guyanese are sceptical about the introduction of anything new.
President of the Georgetown Chamber of Commerce and Industry Gerry Gouveia made a pertinent point that nothing was in place to deal with goods imported before December 2006 which attracted a 30% consumption tax and was not sold before the end of last year.
In fact, this seems to be at the heart of the furore brought about by the implementation of VAT.
In fairness to the business community, it is unfair to have them paying a 30% consumption tax without a rebate, and in addition, pay a 16% VAT.
However, Gouveia has reiterated the business community’s commitment to VAT and a willingness to cooperate with the GRA in seeing VAT successfully implemented.
This is indeed an encouraging sign, and a refreshing change from the traditional antagonism which plagues our society whenever there is a difference of opinion on a particular issue.
Indeed, it is an indication that we are maturing as a nation, and this augurs well for the future of this dear land of ours.
However, all Guyanese would hope that the hiccups will be ironed out as soon as possible. For in the meantime, the working class and the poorer sections of the society are facing the brunt of the anomalies that have surfaced as a result of the implementation of VAT.
The Guyanese public, nevertheless, must be commended for the patience and generally calm response to having to dig deeper into their purses over the past few days, as this is contrary to the impression that was given when VAT was being legislated.
This experience shows clearly that if a wise and good-intentioned principle is wrongly implemented, it leads to a situation where it could be termed unwise and ill-intentioned.
We would all hope that this matter is expeditiously resolved in the interest of the consumer.
The poor people of this country have enough burdens to face every day.
Adding more to this is grossly unfair.