VAT Act amendment to be tabled
- President announces
Guyana Chronicle
January 17, 2007
THE government will table an amendment to the Valued Added Tax (VAT) Act in the National Assembly Friday that will ensure it is “a fair and effective tax and definitely not punitive to consumers”, the Government Information Agency said last evening.
The agency said President Bharrat Jagdeo made the announcement after meeting several stakeholders in the domestic travel industry.
“On Friday, the Minister of Finance will seek an amendment to the Act that will allow us flexibility, should we want to change the rate on certain items. We will be able to do it immediately rather than to have to wait on Parliament to meet, which takes a long time sometimes, to give effect to the changes we want to make,” GINA quoted the President as saying.
“We met with the aircraft owners and we want to reduce the tax on domestic air travel as well as remove the toll on the hinterland roads, so that will hopefully facilitate cheaper fares to the hinterland areas and therefore reduce the cost of living,” President Jagdeo said.
According to GINA, Public Relations Officer for the Ogle Airport Expansion project, Mr. Kit Nascimento said the discussions surrounded ensuring that the prices to interior residents, especially, of which the aircraft industry clearly plays a major part in terms of flying goods and services into the interior, could be managed in a way that VAT will not hurt.
Nascimento said the discussions will continue.
GINA noted that Mr. Jagdeo Saturday promised that the administration will be seeking to make adjustments, especially in areas impacting on local manufacturing, selected food items and local air travel.
“I had mentioned before there are several items that we are looking at that were increased and we want to make adjustments, probably zero-rate those items,” he said then.
President Jagdeo, the agency said, maintained his position that segments of the business community are utilising VAT as a vehicle for increased profits.
“My concern is still very valid and very justified,” President Jagdeo said adding, “a lot of people are still unconscionable in the business community.”
“They have raised the prices beyond the taxes in some cases and where there should have been significant reduction in prices people have not seen any changes there as yet,” he added.
He reiterated that the government will continue to work through the relevant agencies to monitor the implementation of the new taxation system until it becomes functional, GINA said.
The government began implementing VAT on January 1.