IT was interesting to learn that lowering the Value Added Tax [VAT], would not help the average wage earners. This was brought to my attention in an article I read in local newsprint. The Guyana Government is under serious flak for not lowering the VAT, but the experts, in this case, the Commissioner of the Guyana Revenue Authority, disagree with those opposing.
As I understand it, a reduction would not benefit those people with incomes below the tax threshold, now raised to $50,000, because the regular stuff these folks would buy on a daily basis, are non-taxable.
According to the commissioner’s view, with the increase of the tax threshold, more direct spending power is given to the consumer, earning a salary of over $40,000 per month.
But now to another interesting point, that places the VAT situation ‘under a different microscope’ – What about these businessmen who collect VAT from unsuspecting customers that receive no bills of sale?
The businessman or woman themselves, not only under-report their sales, but purposely fail to pay the GRA any of the VAT they have received. The VAT officers must find this rather frustrating, trying to catch these unscrupulous so-called businesses people.
It is illegal and unfair, these acts committed by business folks, so it is very important that consumers continue to educate themselves.
I was also impressed with comments made by the Private Sector Commission Chairman, who alluded to the fact that there is no need for unnecessary “gridlock’ rhetoric, but encouraged the opposition instead to get involved in making technical agreements, and objective criticisms, which will bring a good democratic parliament to work, for the good of the people in the country.
He made these remarks Re: the 2012 budget of $192.8 B, presented in to the House, by Minister of Finance, Dr. Ashni Singh. He was reminding many that the worst will not necessarily be in Parliament, which begins its normal Debate on April 10.
We are on the right development path and should encourage and accelerate our new and existing industries, and we need to bear in mind, that any sort of ‘gridlock’ in Parliament over the budget, will only stymie the way forward.
I would hope that commonsense will prevail over personal or political ambitions, especially if government takes a stand against any opposition “grid locking’.
Minister within the Ministry of Finance, also mentioned he does not anticipate a gridlock over the budget.