PSC commends VAT relief steps
Guyana Chronicle
February 6, 2007
THE Private Sector Commission (PSC) yesterday commended the government for the steps it has taken to bring immediate and tangible relief to consumers who were severely affected by the impact on the cost of living from the introduction of the Value Added Tax (VAT).
The PSC in a statement, said Minister of Finance Dr. Ashni Singh should continue to monitor the impact of the tax on the average consumer and on the business community to ensure that the introduction of the tax serves its purpose of widening the tax base, while avoiding hurting the consumer and discouraging investment.
The body said the initial introduction of the tax had resulted in the unforeseen and undesirable dislocation of a considerable cross section of the manufacturing and commercial community, as well as appreciable hardship to consumers faced with the sudden rise in the cost of everyday consumables and services.
The PSC said several retail and service businesses, in particular, have suffered losses caused by unfair competition resulting from some businesses not having registered.
At the same time, it urged members of the business community to ensure that they are properly registered and are conforming to the requirements of the law.
“It is important that consumers are allowed to fully benefit from the extended list of those products and services which have either been zero rated or exempted by the amendments to the VAT Act by the Minister of Finance,” the PSC stated.
The association, however, said “the continuing, unrelenting and unsubstantiated attacks being made on the business community by the Commissioner General of the Guyana Revenue Authority (GRA) are unwarranted and unproductive and serve no useful purpose.”
The PSC said it is satisfied that the successful implementation of the VAT and Excise Tax would be much better served by the GRA concentrating its efforts on assisting businesses, especially smaller businesses, in properly and lawfully applying the provisions of the VAT Act and in fully educating the consumer.
It said it looks forward to continuing to work closely with the Minister of Finance and in cooperating with the GRA to facilitate the successful implementation of the VAT and Excise Tax.