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VAT is three times the burden

May 25, 2011 Letters

Dear Editor,
I read an article in your daily newspaper about TAX and VAT in Guyana and wish to commend you to firstly recognize the hard times which the PPP Government has created for Guyanese. It is a sad thing to know that the government has implemented a system it cannot control.
To date all Guyanese and foreigners complain of the heavy price which is due to excessive VAT charged for good, but the government continues to deny this and say that cost of goods has increased.
Even though the cost of goods increased the VAT charges are carrying up the price even further up and the government is happy with collection. It must be highlighted that the VAT collection is from poor hardworking Guyanese who earn a meager salary. This collection is seen as a savings to the bigger businesses who register for VAT and can claim back their VAT.
We, the poor people, have no way of claiming back the VAT, no benefits, no returns from the government, unless I can count Priya Manickchand’s Ministry giving $ 1,500 for parents to purchase uniform. The school boots is $1300; passage for me to go to the school for $1500 is $500.
Guyanese have been taking this for a long time because we are afraid to speak since we can become a prime target for victimization.
Our opposition is responsible for the Guyanese suffering like this. These are the issues of concern to the public and the opposition is supposed to deal with these matters that represent the comfort of the people.
I would like to recognize the efforts of Kaieteur News and Mr. Sharma to publicly air these concerns and hope that you too are not victimized for doing so.
Mr. Editor I would like to highlight that VAT was supposed to be charged once. The businesses are now enjoying this as savings. Also we the ordinary are being charged VAT three times;
IMPORTER
If an importer brings in an item at $100, he pays 16% which bring the cost to $116. He then put on 10% mark up so he sells for $128.
WHOLESALER
Buys for $128; Puts on 10% mark up $141; when he put on VAT, $157
SUPERMARKET
Supermarket buys from wholesaler for $157; it puts on 10% mark up, $172; Then puts on VAT, $200.
Therefore I pay VAT three times which is responsible for the item to cost $200. Ideally the wholesaler and the supermarket were supposed to put on 10% only since those prices included VAT already, but they charged VAT on VAT and the government is blaming increased price.
The importer sells the item for $128. When the wholesaler put on the mark up of 10 percent, he can sell for $140, then when the supermarket purchase from the wholesaler for $141 and he puts on mark up of 10% I can have the item for $155 rather than $200. Mr. Editor I am therefore paying $50 more for everyone of that same item which I buy. What about the other expensive items that cost more? This is the thing that is killing us.
Then there is my salary. I pay 33.33% on the taxable income. And I am not entitled to a refund.
Mr. Editor this government should stop killing us and victimize us when we talk but instead give us more for our children.
Plus we are paying all this tax to pay public servants even as the police and soldiers are killing and robbing innocent and hard working people.
Overtaxed and over-vatted

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