Govt. restores 40 percent import tariff on soaps

May 28, 2021 News

– Harmon says move unconscionable

Opposition Leader, Joseph Harmon.

Kaieteur News – The Guyana Revenue (GRA) has advertised its decision to restore the 40 percent Common Eternal Tariff (CET) on soaps. According to the tax body, all licenced custom brokers and importers should be notified that the tariff would be in effect as of June 1, 2021 and apply to all soaps including medicated soaps, liquid and hand soaps.
The GRA stated in the advertisement that the decision is in keeping with the Government of Guyana’s obligations under the Revised Treaty of Chaguaramas and determination made at CARICOM’s 49th Council for Trade and Economic Development (COTED) meeting.
The reinstatement of 40 percent CET on soaps comes about a year after it was suspended to accommodate the importation of the commodity in wake of the COVID-19 pandemic. Citing the statement from GRA, Opposition Leader, Joseph Harmon, issued a statement calling the re-imposition of 40% tax on soap by the Government as ‘unconscionable.’
Harmon noted that it was the APNU+AFC Coalition, which removed the CET on soaps after the pandemic hit last year. He explained that the suspension was intended to increase the availability of soaps and reduce the prices to make it more affordable to ordinary people.
“We remain in the throes of a global pandemic and a central feature of the measures to prevent the spread of COVID-19 is for persons to regularly and thoroughly wash their hands with soap. The citizenry it more dependent on soap now than ever before,” Harmon outlined in the statement. He noted that the re-imposition of the tariff would imperil the health of the people as many will not be able to afford to buy soap.
Harmon noted that the 40% price increase is in addition to skyrocketing price increases for basic food items – rice, sugar, flour, oil, milk, meats and vegetables. He asserted that the PPP Government does not care about the health and safety of Guyanese, nor do they care about taking every action to help curb the spread of COVID-19.
“In fact, their actions and policies are helping to spread COVID which is already out of control. We call for both an explanation for this rash re-imposition and the immediate suspension of this 40% hardship tax which is not necessary nor is it humane at this time as we continue to battle the COVID-19 pandemic,” Harmon added.
While there has been no official explanation of the re-imposition of the CET, Kaieteur News has leant that the tariff was restored because Dominica, the Region’s largest producer of soap made representation at COTED for a return of the CET. A source close to the issue noted that “the reinstatement of the tariff will have a negligible increase in price of extra-regional soap but it will help Dominica workers keep their jobs.”
Further, the source explained that despite the rate being suspended from last year, it never resulted in a likewise reduction in the cost of extra-regional soap sold on the Guyanese market.
“Rather the importers made super profits from the reduction in tariffs,” the source added.