LETHEM, Rupununi in Region Nine (Upper Takutu/Upper Essequibo), where, up to six years ago, a significant amount of business was done by bartering of good and services without the exchange of money, his now seeing the emergence of a strong commercial sector.
Since 2005 and, more recently, with the opening of the Takutu River Bridge linking Guyana and Brazil, Lethem is becoming a growing hub of commerce with Brazil and the larger South America.
Where most of the employment was done by Government departments, the Private Sector is now dominant, trending to surpass other local townships in terms of  commercial activity and privately driven development.
Three prominent personalities, President of Rupununi Chamber of Commerce and Industry(RCCI), Mr. John Macedo; former President, Mr. Daniel Gajie and Regional Chairman, Mr. Clarindo Lucas, spoke, last week, about a great potential for transforming the quality of life of villagers and other residents in the environs.
Macedo talked about some tax issues which he feels are hurting business and need  to be reviewed.
He said, a few years ago,  the people of Lethem used to buy merchandise from Bon Fim in Brazil but, over the past six years, Brazilians are now buying from Lethem on a large scale and the income earned from the increase in business has helped businessmen to develop the local economy, also creating better jobs.
Macedo said Lethem receives between 500 and 1,000 visitors daily from Brazil and things are even cheaper there (in the VAT free zone) than in Georgetown.
He said the reason is that Guyanese mark-ups are much less than in Brazil and the local people are satisfied to make lower profit on items originating from the Guyana coastland.
Macedo pointed out that it takes a container between 14 and 21 days to get from Roraima  State to Bon Fim in Brazil while shipments to Lethem from Georgetown gets to the destination in 24 hours.
Brazil applies a lot of taxes, so, by the time the product reaches Bon Fim, the price is very high. One Brazilian real is equal to G$118 and, on Brazil holidays and weekends, a lot of shopping is done in Guyana for dry goods and clothing.
Right now, Lethem is the only location in this country that has a designated commercial area.

Duties

Macedo said he would like Government to review the methods of determining duties on goods being imported and the taxes imposed on alcohol imported from Brazil.
He said Guyana Customs, at the Takutu Bridge, previously used a fixed valuation but are now demanding bills and are valuing imports in accordance with them.
Macedo said the problem is that businessmen would secure different  prices as some shops in various areas have differing systems.
One man can get an item 60 per cent cheaper than the other, especially if he buys in volumes of more than a thousand items from a Brazilian businessman or directly from a factory.
He also said varying tariffs lead to unfair competition and RCCI will be pursuing the matter with Guyana Revenue Authority (GRA), in the quest to have  the old system of tariff fixing reintroduced to ensure a level playing field for those involved in trading with  Brazil through Lethem.
Macedo disputes taxes imposed on alcohol since the opening of the Takutu River Bridge last September 14, lamenting that the new duties has effectively killed the large scale importation of Brazilian beer into Lethem.
He said Brazilian beer used to be sold for G$200 but, under the new dispensation, the the price would go up G$525 per bottle.
Macedo said some businessmen agree they have to pay taxes but would prefer the Government to allow the duty free entry of alcoholic beverages.
Meantime, there has since been a marked increase in the sale of Banks beer and locally produced vodka.
Gajie noted that Lethem, which has, historically, been the administrative centre of Rupununi is now evolving into a larger player.
Given the Takutu River Bridge linkage, he forecast that the future of Lethem and Rupununi would be very bright.
It is the transit point for people going to Brazil and tour operators, hotels and other service providers benefit from that traffic, Gajie observed.
Gajie attributes the growth in commerce in Lethem with neighbours in Brazil to the strengthening of the real (Brazilian currency) in 2006.
Lucas said the Lethem business community has bloomed, with the support of Brazilians who find the environment good for business, comfortable and economical for shopping.
In his view: “People in Lethem may feel that prices are a little too high but, for the Brazilians, they are more competitive than in Brazil. Even the goods manufactured in Brazil are cheaper here than there.”
He said that is because, when they are finished making the product, taxes are slapped on it but when Guyanese buy in bulk, certain taxes are waived.

Cheap

Lucas alluded to Lethem being a tax free zone, except for the VAT on certain commodities and said, for most foodstuff and other home necessities, Brazilians find their own produce cheap in Lethem when compared to Brazil.
He said fuel dealers at Lethem are making a big impact as their prices are very competitive and Brazilians travel there to fill the tanks of their vehicles and drive back   over the b order. Some have even added additional capacity.
“The economy of the business community is improving and we are having an interaction that is very friendly and accommodating,” Lucas said.
He said the Regional Administration is happy about the developing situation while being alert to the possible dangers of such an accommodating environment.
Lucas said preparations for implementing the special border and transport regime between Bon Fim and Lethem are ongoing and matters being discussed by the stakeholders include an international insurance registration for such as taxis and buses; establishment of the Lethem Authority and Registration procedures like compulsory driver and vehicle documentation or international special driver’s licence; travel documents and visa extensions for purposes of business.
His concern is for drivers from Brazil to remain conscious of the need to switch from driving on the right hand side to the left hand side of the road while visiting Guyana.
“We want development but we prefer people to die from natural  causes rather than by accident,” he said.