Government must protect its citizens from Inflation Storm

Mar 12, 2022 Letters

Dear Editor

With the war in Ukraine and other severe pressures driving prices on commodities such as oil and wheat to record highs, the government must move immediately to address what is looking like a period of severe hardship on Guyana’s working poor.
However I hope that this does not involve another round of envelope handouts. These simply take up too much time and labour and are open to abuse.

Instead there are far more efficient and fairer ways to put money in people’s pockets. Credits on GPL up to $10,000 per month, similarly with GWI, can be done with a stroke of a pen. This will benefit poorer households more as the credit would be a larger proportion of their bill. Secondly it would reward those households who are not stealing electricity or water.

The government must also reduce the excise tax on fuel to zero with immediate effect and ensure GuyOil keeps its price at $200 per litre. This will help commuters and businesses to contain spiralling expenses. Other measures could include a reduction in VAT to 10%. This is not a time for timidity. This is a time for proactive policies directed at consumers. There will be more than enough money to pay for these measures with oil prices so high. Let it be remembered that the Natural Resource Fund was always intended to be a savings account for rainy days. There’s a massive storm blowing in and now is the time to shelter our people from it.

Yours sincerely
Lynn Nicholas