What happened to VAT reduction?

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Former Member

What happened to VAT reduction?

February 29, 2016 By GuyanaTimes, http://www.guyanatimesgy.com/2...ed-to-vat-reduction/

An object lesson for Guyanese citizens on the tendency for Opposition politicians to exploit irresponsible populism to garner votes has been the volte-face on the A Partnership for National Unity (APNU) and the Alliance For Change (AFC) on their promise to reduce the Value Added Tax (VAT). From the moment the People’s Progressive Party/Civic (PPP/Civic) introduced the 16 per cent VAT in 2007, the mantra of the then Opposition was it was just another mechanism to “punish poor people”.
The reduction of VAT became one of the major issues during the 2011 and 2015 elections, with the Opposition parties calling for slashing the rate by half and later settling for a three per cent reduction. The PPP/C Government balked and insisted in light of globalisation and liberalisation, the VAT was the most equitable method of collecting revenues to compensate for the reduced revenues precipitated by lowered tariffs under the new international trading regimes. The World Bank and International Monetary Fund (IMF) had consistently recommended VAT as a more efficient method of collecting taxes on consumption rather than the old Consumption Tax it replaced. By the time Guyana adopted VAT, Jamaica, T&T and Barbados were already on board. Today, more than 140 countries collect VAT.
However, while VAT is a fiscal measure concerned with generating revenues for the State to function, it obviously has a social impact which Governments have to take into consideration. This is frequently dealt with by exempting basic food and other items that form a larger part of the shopping basket of the poor. In Guyana, the PPP/C exempted a large number of foods such as rice, etc, from VAT. Obviously another route would be reducing the overall rate which would have to be calibrated, so that the State still collected enough revenue to perform the functions demanded by citizens.
One of the 21 promises made by the new APNU/AFC Government – to be completed in its first 100 days in office – was to: “Immediately implement a phased reduction of VAT and the removal of VAT from food and other essential items”. But as with so many of the promises, there was no change. What the Government did was to follow the old British tactic of establishing a Committee in June to re-examine the tax regime and within that context, reduce VAT as it has been promising for seven years. When the Budget was presented in August; however, there was no reduction in VAT but only some inconsequential extension of zero-rated items.
The Committee submitted its recommendations on January 18, 2016, but without revealing its specifics, Finance Minister Winston Jordan confessed that “reducing VAT was not straightforward”. Repeating the PPP/C’s arguments since 2007 against APNU and AFC, Jordan stated that if the VAT were reduced, some zero rated items would have to attract VAT and this would be regressive from a social perspective. He alluded to the situation in Trinidad and Tobago, where the Government had just reduced VAT from 15 per cent to 12.5 per cent, but simultaneously taxed some previously zero-rated items.
In his presentation two weeks later when he presented Budget 2016, Jordan still did not reveal the proposals of the Tax Reform Committee on VAT, only saying they were “submitted too late”. It is now revealed that the Committee had recommended a reduction of two per cent bringing the VAT rate to 14 per cent. During the Budget debate, the now-Opposition PPP/C reminded the Government of its Manifesto promise on VAT and promised to support any reduction that would be proposed. Another suggestion, which had been proffered for years by now Minister of Tourism Cathy Hughes, was to lower VAT in tourism – a practice followed in several tourism locales. For instance, the Bahamas has a 15 per cent VAT but 10 per cent for tourism, while Barbados reduced their 17.5 per cent VAT even more steeply for tourism – 7.5 per cent. Unfortunately, there has been no change on tourism VAT also.
We await this Government’s action on VAT.

Replies sorted oldest to newest

NehruBig Mouth Member

HAHAHAHA REmember how Uncle Tom used to halla like a Bitch about that!!!!!!!!!!!!!!!!!!!!!!!!!!!

2/29/162:37 PM

Former Member

Interesting times ahead, Nehru ... as the PNC/AFC continues to babble endlessly without effective progress.

2/29/162:48 PM

NehruBig Mouth Member

Dem DUMMIES can only talk. Poor Guyana, we were about to get to the Mountain Top, NOW we in the trenches!!!

2/29/162:56 PM

Billy Ram BalgobinBilly

In one of his weekly articles, Ralph Ramkarran, branded the AFC as hoodwinkers. The propaganda war camouflaged many important facts and confused as much it fooled many people.

2/29/163:21 PM

Former Member

I believe the reality has kicked in, they can't deliver on campaign promises after giving themselves 50% raises, bailing out Green by cleaning up GT and rebuilding Kitty Market, throwing 50th anniversary bash and giving out freeness to their supporters to jump and wine down.

2/29/166:27 PM

Former Member

Drugb posted:
I believe the reality has kicked in, they can't deliver on campaign promises after giving themselves 50% raises, bailing out Green by cleaning up GT and rebuilding Kitty Market, throwing 50th anniversary bash and giving out freeness to their supporters to jump and wine down.

important things the racist PPP gangsters couldn't/wouldn't do

progress!! no?

2/29/167:22 PM

Former Member

redux posted:
Drugb posted:
I believe the reality has kicked in, they can't deliver on campaign promises after giving themselves 50% raises, bailing out Green by cleaning up GT and rebuilding Kitty Market, throwing 50th anniversary bash and giving out freeness to their supporters to jump and wine down.
important things the racist PPP gangsters couldn't/wouldn't do
progress!! no?

Progress, rebuilding a dilapidated structure. Ok, I get it, preserve it for posterity. However to be fair, go visit all the shopping malls and electronic and specialty and new departmant stores in Guyana, not only GT, but all over!!

THIS IS WHAT THE PPP HANDED OVER. Commerce based on a robust economy!!

2/29/168:01 PM

Former Member

baseman posted:
redux posted:
Drugb posted:
I believe the reality has kicked in, they can't deliver on campaign promises after giving themselves 50% raises, bailing out Green by cleaning up GT and rebuilding Kitty Market, throwing 50th anniversary bash and giving out freeness to their supporters to jump and wine down.
important things the racist PPP gangsters couldn't/wouldn't do
progress!! no?
Progress, rebuilding a dilapidated structure. Ok, I get it, preserve it for posterity. However to be fair, go visit all the shopping malls and electronic and specialty and new departmant stores in Guyana, not only GT, but all over!!
THIS IS WHAT THE PPP HANDED OVER. Commerce based on a robust economy!!

oh, so you "get it" eh?

do you also get that jagdeo minista killaman lall was starving the municipality . . . calculating that a resulting "health crisis" over piled up garbage would "remove the city council" and allow the PPP to take over, huh?

idiot! . . . kvelling over some narco-funded retail outlets in a [Central Gov't planned] stink & diseased city . . . what are you, a child?

imagine, days after they lost the elections, the PPP announced that Guyana's biggest employer, GUYSUCO, is bankrupt and can't make payroll

rice . . .the industry's fortunes mortaged to the whims and fancies of a crude, revanchist neo-communist regime to our West

this is the "robust" economy bequeathed to the new gov't by those larcenous, race-nasty, low thinking, unpatriotic skunks in Freedom House

idiot!!³

2/29/168:36 PM

Former Member

redux posted:
baseman posted:
redux posted:
Drugb posted:
I believe the reality has kicked in, they can't deliver on campaign promises after giving themselves 50% raises, bailing out Green by cleaning up GT and rebuilding Kitty Market, throwing 50th anniversary bash and giving out freeness to their supporters to jump and wine down.
important things the racist PPP gangsters couldn't/wouldn't do
progress!! no?
Progress, rebuilding a dilapidated structure. Ok, I get it, preserve it for posterity. However to be fair, go visit all the shopping malls and electronic and specialty and new departmant stores in Guyana, not only GT, but all over!!
THIS IS WHAT THE PPP HANDED OVER. Commerce based on a robust economy!!
oh, so you "get it" eh?
do you also get that jagdeo minista killaman lall was starving the municipality . . . calculating that a resulting "health crisis" over piled up garbage would "remove the city council" and allow the PPP to take over, huh?
idiot! . . . kvelling over some narco-funded retail outlets in a [Central Gov't planned] stink & diseased city . . . what are you, a child?
imagine, days after they lost the elections, the PPP announced that Guyana's biggest employer, GUYSUCO, is bankrupt and can't make payroll
rice . . .the industry's fortunes mortaged to the whims and fancies of a crude, revanchist neo-communist regime to our West
this is the "robust" economy bequeathed to the new gov't by those larcenous, race-nasty, low thinking, unpatriotic skunks in Freedom House
idiot!!³

Now, the rant of the pompously stupid!

Are you building case for the eventual economic failure of this PNC regime? No need to, they doing it all by themselves. You are a useless punk, they should save their money!!

Your PNC left Guyana mortgaged to almost every nation with an embassy in Guyana. I believe even Gadaffi and his Govt had to accept PNC beggar bowl days [paying GDF salaries] and gave up trying to collect. By 1992, they realize it was a dead horse!!

The only Govts not owed by the PNC were the poorest of the poor, poorer than PNC Guyana, and there were very few, those who had little to nothing to lend!!

Furthermore, you rass leff Guyana in the 70's as a lil boy, what the hell's your connection to/interest in Kitty Market anyway!! And who the hell are you to talk Guyana Patriotism fool. You and yours ran off and lived off the struggling taxpayers of Guyana and never looked back, and you talking patriotism. Give me a break fool!!

2/29/169:19 PM

NehruBig Mouth Member

Stupid as Stupid gets!!!!!!!

2/29/169:57 PM

Former Member

baseman posted:
redux posted:
baseman posted:
redux posted:
Drugb posted:
I believe the reality has kicked in, they can't deliver on campaign promises after giving themselves 50% raises, bailing out Green by cleaning up GT and rebuilding Kitty Market, throwing 50th anniversary bash and giving out freeness to their supporters to jump and wine down.
important things the racist PPP gangsters couldn't/wouldn't do
progress!! no?
Progress, rebuilding a dilapidated structure. Ok, I get it, preserve it for posterity. However to be fair, go visit all the shopping malls and electronic and specialty and new departmant stores in Guyana, not only GT, but all over!!
THIS IS WHAT THE PPP HANDED OVER. Commerce based on a robust economy!!
oh, so you "get it" eh?
do you also get that jagdeo minista killaman lall was starving the municipality . . . calculating that a resulting "health crisis" over piled up garbage would "remove the city council" and allow the PPP to take over, huh?
idiot! . . . kvelling over some narco-funded retail outlets in a [Central Gov't planned] stink & diseased city . . . what are you, a child?
imagine, days after they lost the elections, the PPP announced that Guyana's biggest employer, GUYSUCO, is bankrupt and can't make payroll
rice . . .the industry's fortunes mortaged to the whims and fancies of a crude, revanchist neo-communist regime to our West
this is the "robust" economy bequeathed to the new gov't by those larcenous, race-nasty, low thinking, unpatriotic skunks in Freedom House
idiot!!³
Now, the rant of the pompously stupid!
Are you building case for the eventual economic failure of this PNC regime? No need to, they doing it all by themselves. You are a useless punk, they should save their money!!
Your PNC left Guyana mortgaged to almost every nation with an embassy in Guyana. I believe even Gadaffi and his Govt had to accept PNC beggar bowl days [paying GDF salaries] and gave up trying to collect. By 1992, they realize it was a dead horse!!
The only Govts not owed by the PNC were the poorest of the poor, poorer than PNC Guyana, and there were very few, those who had little to nothing to lend!!
Furthermore, you rass leff Guyana in the 70's as a lil boy, what the hell's your connection to/interest in Kitty Market anyway!! And who the hell are you to talk Guyana Patriotism fool. You and yours ran off and lived off the struggling taxpayers of Guyana and never looked back, and you talking patriotism. Give me a break fool!!

baseman, you really ought to pay attention to how i do it and learn

when u call someone a "fool" . . . you should show why

otherwise you are simply sharing idiot space with nehru

now, i made 4 points . . . you rebut NONE!

instead, u choose to throw some violent and scary blows at some hastily constructed straw man dressed up in a 'Burnham' fright mask

klown sir, where exactly did i make the case that Burnham/PNC did NOT leave Guyana poor?

what i did do with a flick of my wrist was dispatch your klown story that jagdeo left the new gov't with a "robust" economy

focus

2/29/1610:11 PM

Former Member

redux posted:
baseman posted:
redux posted:
oh, so you "get it" eh?
do you also get that jagdeo minista killaman lall was starving the municipality . . . calculating that a resulting "health crisis" over piled up garbage would "remove the city council" and allow the PPP to take over, huh?
idiot! . . . kvelling over some narco-funded retail outlets in a [Central Gov't planned] stink & diseased city . . . what are you, a child?
imagine, days after they lost the elections, the PPP announced that Guyana's biggest employer, GUYSUCO, is bankrupt and can't make payroll
rice . . .the industry's fortunes mortaged to the whims and fancies of a crude, revanchist neo-communist regime to our West
this is the "robust" economy bequeathed to the new gov't by those larcenous, race-nasty, low thinking, unpatriotic skunks in Freedom House
idiot!!³
Now, the rant of the pompously stupid!
Are you building case for the eventual economic failure of this PNC regime? No need to, they doing it all by themselves. You are a useless punk, they should save their money!!
Your PNC left Guyana mortgaged to almost every nation with an embassy in Guyana. I believe even Gadaffi and his Govt had to accept PNC beggar bowl days [paying GDF salaries] and gave up trying to collect. By 1992, they realize it was a dead horse!!
The only Govts not owed by the PNC were the poorest of the poor, poorer than PNC Guyana, and there were very few, those who had little to nothing to lend!!
Furthermore, you rass leff Guyana in the 70's as a lil boy, what the hell's your connection to/interest in Kitty Market anyway!! And who the hell are you to talk Guyana Patriotism fool. You and yours ran off and lived off the struggling taxpayers of Guyana and never looked back, and you talking patriotism. Give me a break fool!!
baseman, you really ought to pay attention to how i do it and learn
when u call someone a "fool" . . . you should show why
otherwise you are simply sharing idiot space with nehru
now, i made 4 points . . . you rebut NONE!
instead, u choose to throw some violent and scary blows at some hastily constructed straw man dressed up in a 'Burnham' fright mask
klown sir, where exactly did i make the case that Burnham/PNC did NOT leave Guyana poor?
what i did do with a flick of my wrist was dispatch your klown story that jagdeo left the new gov't with a "robust" economy
focus

Listen, when last did you even visit Guyana? Furthermore, you all dismiss the economic progress as a "drug" money economy. You ignore everything else. So, you get what you deserve!!! Get it. Now stop being a clown!!

3/1/166:07 AM

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