Latest update May 28th, 2026 12:17 AM
Aug 20, 2023 News
Kaieteur News – Ramsay Ali, the President of the Guyana Manufacturers Services Association (GMSA), is advocating for the elimination of value-added tax (VAT) on locally manufactured and agro-processed products, as well as data services throughout the nation.
In a recent interview, Ali emphasized that numerous locally agro-processed items are still subject to VAT, despite their local origin. He cited examples such as guava cheese that continues to attract VAT and stressed the importance of zero-rating all locally agro-processed products, asserting that while there are currently zero-rated products, this practice should extend to all agro-processed goods.
He said, “There are still a lot of locally agro-processed products that are attracting VAT. If you go to the Guyana shop you would see things like guava-cheese (attracting vat).”
Ali contextualized his stance, highlighting that a broader range of locally produced goods exempt from VAT would yield benefits for both the business community and the general public. Lower VAT would translate to more affordable products, prompting businesses to adjust their prices accordingly. Ali noted that businesses often resort to price hikes when essential items they require start incurring VAT, resulting in greater financial burden for consumers.
The call for VAT removal on locally produced goods was initially raised by Ali at the GMSA’s mid-year dinner. During the event, he spotlighted instances of locally produced items like guava jam and chowmein from Beharry Limited being subjected to considerable VAT. Ali pressed for the exclusion of VAT on data services as well. He concurred with the idea of using data for calls, reflecting the modernization of communication methods. “We have to zero-rated data and we’re gonna keep pushing until we get it. There is one company in Guyana that is saying we should not be making calls using minutes anymore we should be using data,” he noted, referring to E-Networks which recently rolled out its mobile services that attracted a large customer base across the country.
Furthermore, Ali underscored the significance of data services for business operations and the switch from minutes to data for calls. This transition, he explained, would enhance convenience and cost-effectiveness for enterprises utilizing data services.
Ali reiterated GMSA’s unwavering support for the “support local” initiative. At the dinner, he urged the government to prioritize local producers for procurement of goods made within Guyana’s borders.
Ali also illuminated GMSA’s aspiration to attain international recognition for local agro-processors. Acknowledging the costliness of participating in expos abroad he noted that more assistance is needed from the government. He even suggested an allocation from the government to agro-processors in the annual national budget as it would bolster its efforts to improve and expand the local agro-processor community.
The GMSA President also previously underscored plans to expand the UncappeD Marketplace, an exposition organized by the association, on an international scale. Ali revealed intentions to host UncappeD in countries with a significant Guyanese diaspora, aiming to spotlight the products and services of the nation’s small agro-processors.
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