— GRA boss says prices remain the same despite VAT reduction

DESPITE the two per cent reduction in Value Added Tax (VAT), Commissioner- General of the Guyana Revenue Authority (GRA), Godfrey Statia, has observed that consumers are paying the same prices for many items as before.

While many Guyanese were expecting that a reduction in the rate of VAT from 16 per cent to 14 per cent, would result in the reduction in the cost of items, it has been reported to the GRA that businesses still charge the same prices.
“Even though rates have been reduced, prices remain the same,” the commissioner-general said, noting that the profit margins of the business entities are increasing at the expense of consumers.
“That is one way we know that consumers are being taken advantage of,” he said, while noting that many businesses are not registered and as a result do not pay taxes to the revenue authority.

Many importers, he said, also do not pay taxes.
Law-abiding businesses and members of the public have been engaging the revenue authority, assisting with information on the tax delinquents.
“That is the kind of communication we like,” Statia said, as he encouraged other persons to be forthcoming with information of businesses that are not registered with the GRA and do not pay taxes.
The head of the revenue authority said measures will be enforced to protect the interests of consumers who pay their taxes, to ensure they are not exploited.

Meanwhile, in an effort to clamp down on other unlawful activities, the GRA will be implementing their Digital Excise Stamp system. This system is aimed at reducing the smuggling of highly dutiable cigarettes and alcohol by affixing a type of revenue stamp on the products, which is readable by a barcode scanner.
It will become operational by August month-end.