Some businesses ripping off customers in name of VAT -GRA Commissioner
Stabroek News
May 18, 2007
A senior Guyana Revenue Authority (GRA) official has said that some business persons are making huge profits at the expense of their consumers in applying the Value-Added Tax (VAT) system while claiming to have their interests at heart.
"Some consumers are being ripped off in the name of VAT," Commissioner of the Value-Added Tax (VAT) and Excise Department, Hema Khan said on Tuesday in a press release.
However, she has reiterated that the VAT structure will be continually reviewed to the benefit of the consuming public in light of the shadow being cast upon the VAT system through the media and unethical business practices.
Khan noted that much of the negative statements about VAT and the negative effects being felt by consumers are due to the unconscionable practices of some businesses, the release added.
She said further that the situation is an unfortunate one since some 95 categories of items have been zero-rated, including basic food items.
Moreover, registered businesses can reclaim VAT paid on inputs directly related to the furtherance of the business such as stationery, telephone, transportation and VAT paid on taxable supplies, and these benefits should be passed on to consumers.
The Commissioner also called on businesses to preserve their corporate integrity by demonstrating good business practices and respect for their customers. She urged too that customers be aware of their rights and to ensure that businesses give them their due. All registered businesses, the release added, are required to issue a receipt for each sale.
Failure of the customer to collect a receipt can contribute to businesses not paying over the VAT collected to the GRA.