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2nd FEBRUARY 2007
MEDIA RELEASE
“PSC COMMENDS GOVERNMENT ON BRINGING RELIEF TO THE CONSUMER”

The Private Sector Commission (PSC) commends the Government for the steps which it has taken to bring immediate and tangible relief to consumers who were severely affected by the impact on the cost of living from the introduction of the Value Added and Excise Tax.

The PSC would like to encourage the Minister of Finance to continue monitoring the impact of the tax on the average consumer and on the business community in order to ensure that the introduction of the tax serves its purpose of widening the tax base while avoiding hurting the consumer and discouraging investment.

The PSC has observed that the initial introduction of the tax had resulted in the unforeseen and undesirable dislocation of a considerable cross section of the manufacturing and commercial community as well as appreciable hardship to consumers faced with the sudden rise in cost of everyday consumables and services.

The PSC notes that a number of retail and service businesses, in particular, have suffered losses caused by unfair competition resulting from some businesses not having registered.

The PSC, at the same time, urges members of the business community to ensure that they are properly registered and are conforming to the requirements of the law. It is important that consumers are allowed to fully benefit from the extended list of those products and services which have either been zero rated or exempted by the amendments to the VAT Act by the Minister of Finance.

The PSC, however, believes that the continuing, unrelenting and unsubstantiated attacks being made on the business community by the Commissioner General of the Guyana Revenue Authority (GRA) are unwarranted and unproductive and serve no useful purpose.

The PSC is satisfied that the successful implementation of the VAT and Excise Tax would be much better served by the GRA concentrating its efforts on assisting businesses, especially smaller businesses, in properly and lawfully applying the provisions of the VAT Act and in fully educating the consumer.

The PSC looks forward to continuing to work closely with the Minister of Finance and in cooperating with the GRA to facilitate the successful implementation of the VAT and Excise Tax.