GCCI’s members call for reduction in VAT

Apr 26, 2012 News

… believe 16 percent is inappropriate

The business community believes that the current Value Added Tax (VAT) rate of 16 percent is inappropriate and too high.
Many of the members of the Georgetown Chamber of Commerce and Industry (GCCI) have signaled the need for the reduction of VAT to a rate pegged between 10 and 12 percent.
But GCCI’s one-week-old Executive does not have an official position on the issue. Nonetheless, its members’ appeal will be taken into consideration, when the body discusses its strategic priorities and work plan next week.
This is according to GCCI’s President, Clinton Urling, who released the findings of an Attitudinal Survey during a press briefing yesterday at its headquarters.
The body conducted the survey to ascertain the business community’s optimism and difficulties for last year. He noted that GCCI found the overwhelming position of the business community on VAT striking.
The 88-membership organization only had 86 members in 2011 and of that amount only 66 percent responded to the survey. The survey sought opinions on VAT and it was discovered that many businesses do not approve the current rate.
He revealed, “A significant proportion of businesses believe that the current VAT rate of 16 percent was inappropriate with the majority indicating that the rate was too high and should be pegged between 10 and 12 percent…Only five percent of participants believed that the VAT rate should be higher than 13 percent.”
Urling stated that an Advocacy Committee would be created to examine all the issues addressed in the survey.
“We will invite experts, members of the private sector, and members of NGOs to assist us in sharing information and their opinions and we come up with positions on issues affecting the private sector such as VAT,” he said.

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