Mobile unit aims to lower food prices blamed on VAT
Stabroek News
January 29, 2007
The Ministry of Agriculture in collaboration with the New Guyana Marketing Corporation (NGMC) will be sending mobile trucks with supplies of basic commodities to Berbice and Linden, offering zero-rated and exempt items for sale at competitive prices to residents.
This initiative follows complaints that the prices on VAT exempted items had escalated without justification, a press release from the Ministry of Agriculture stated on Saturday. President Bharrat Jagdeo had disclosed this plan at a press conference on Thursday.
One truck was to head to Tain on the Corentyne yesterday while another was to be in Bath Settlement on the West Coast Berbice from 9 am. The truck with supplies for Linden will be in that community tomorrow, the release said. Among the items that will be on sale are rice, flour, sugar, oil, split peas and margarine.
The NGMC is sending these trucks after conducting surveys in those areas where it was found that businesses had taken the prices for zero-rated and exempt items up when there was no reason to do so.
It is expected that the operation of this mobile service will offer a competitive alternative for consumers, with a drop in the price of food items.
The ministry will also be considering a similar exercise for the Essequibo Coast, the release added.
And regarding hinterland locations, adjustments to the VAT regime are expected to cause a further drop in food prices in these areas.