VAT-errant businesses face exposure - Sattaur
Stabroek News
January 3, 2007
GRA Commissioner-General Khurshid Sattaur (centre) speaking to officials of Fogarty's yesterday.
The Guyana Revenue Authority (GRA) says that the businesses that remain errant in relation to the Value Added Tax (VAT) will have their names published in the press so that consumers can shun them.
Yesterday, GRA Commis-sioner-General Khurshid Sattaur and a team went on an inspection of businesses, including supermarkets and variety stores in the city to monitor the implementation of VAT which became applicable on January 1 this year. The team also included persons from the Ministry of Tourism, Commerce and Industry's Consumer Affairs Division.
Sattaur expressed disappointment with illegitimate practices by some of the businesses, some of which included the imposition of VAT on items without adjusting for the Consumption Tax which has now been removed.
Speaking to reporters on the ground floor of Fogarty's, he said that it is illegal for business to tell customers that they can pay either of two prices and wouldn't get a receipt if they opt to pay the price that doesn't include VAT.
He said that if businesses do this, they are aiding and abetting a criminal activity and could face legal action.
"The idea is to ensure that all customers receive all the benefit from VAT." Sattaur said that the GRA will be using decoys to detect the perpetrators and a list will be published by the GRA in an effort to deter persons from supporting such entities.
According to Sattaur, some businesses were offering customers the option of evading the tax on the condition that they do not get a receipt for the transaction. Responding to some of these actions, Sattaur said that if the perpetrators are found the GRA will take condign action against them. He said that businesses must conspicuously display the VAT certificates and redesign their price tags to reflect the prices before and after VAT is applied.
The team went on to Singer's on Water Street and spoke to the managers of that business. At that home appliance store, this newspaper observed that there were no prices displayed on the items for sale as required by law. Asked about this, one of the managers said that the templates for the price tags had just been received.
Sattaur went on to laud businesses which have taken the decision to keep their prices down in spite of VAT. He said that this is a good lead for other businesses to follow.