Ax the VAT Tax
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The Peoples Democratic Party has already stated on their website
http://www.guyanapdp.org
That the Vat in Guyana will be removed 100%, not lowered.
PDP Admin
Peter, IF you go into the next election with VAT costing taxpayers you are going to get left behind when someone sits down and work out the prices that were charged before VAT @ 16% and show that the actual VAT @ 16% is not really responsible for the increasing cost of living. Prices should have fall with the introduction of VAT @ 16%. It is just BIG businesses putting up prices. A small business, that have revenues below G$10m does not charge VAT. So the price rises are due to BIG businesses.
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YOU NEED to distance yourself from the argument that VAT @ 16% is what is leading to higher prices as you may find that a reduction in VAT does not lead to a similar reduction in prices (REF: flour prices, price of diesel and price of gasoline).
Peter while I think this shows an important picture it should also use the correct figures so that you come across as objective not sensationalist :
1) VAT is paid out of NET income not Gross income
2) Not all goods and services attract VAT (in particular light bill and the majority of food items)
If someone spent ALL of their take home taxable income on supplies attracting VAT they would spend 16%*(100-33.3-5.20) of every dollar on VAT or 16% of 61.5 which is 9.84 not 16.
Say they spend half of their taxable income on supplies attracting VAT then they are paying 43.45 of every 100 on taxes.
Patrick Thanks for the Update. Peter
My neice living in Guyana said that something costing $100 dollars will cost $200 dollars in tax. I saw on Stabroek’s website where fuel has a 50% vat. This is insane!!!!
TAX IN GUYANA IS OUTRAGEOUS. I HAVE VISITED MANY COUNTRIES AND HAVE NEVER SEEN A 16% TAX. WE SHOULD NOT TOTALLY ELIMINATE TAX BUT INSTEAD. FOODSTUFF SHOULD CARRY NO TAX, MARGINAL TAX ON NECESSITIES AND CAN BE 16% ON LUXURIOUS ITEMS. IF YOU HAVE A LOT OF MONEY AND LIVE A LUXURIOUS LIFE YOU SHOULD ABLE TO PAY TAX ON THOSE ITEMS. THE TAX ON LUXURIOUS ITEMS CAN BE BENEFICIAL FOR THE POOR BETTER HEALTHCARE, SCHOOLS, A FEW MORE AMBULANCES IN THE COUNTRY AND IMPROVE THE WATER SYSTEM.