“Stop complaining and get busy!” – Trotman tells GCCI

2017 National Budget

Government spokesperson Raphael Trotman on Thursday chastised the private sector and the nation for complaining about the introduction of Value Added Tax (VAT) on electricity and water as revealed in the 2017 National Budget presentation and invited them to “get busy”.

Trotman stated that Government would prefer to live in a country where there are no complaints since Guyana has a lot to be grateful for. He stated that Guyana can look at “the glass half empty and forget that VAT has been lowered by two per cent and that corporate taxes have been lowered or they can choose to complain and do nothing.”

“The government of Guyana would prefer that we live in a country of no complaints…however we invite you to get busy. We have things to be grateful for…” he remarked.

Trotman indicated that while he is not unmindful of the fact that the country’s economy is dipping, the nation needs to come to grip with this reality.

“I am not unmindful of the fact that our economy is performing below our expectations. There are two fundamental realities about this finding…firstly, it has to change and secondly, we are going to have be a part of this change,” he said, highlighting that it was predicted that countries in the Latin America and the Caribbean economy would drop to –0.6 percent and 1.6 in 2017, Guyana is doing better.

“The World has slowed down…Guyana has slowed down. This is an incontrovertible fact that we must accept whether we are in Government, whether we are in Opposition, whether we are in private sector or civil society, we can choose to find a scapegoat and to point fingers or we can look beyond the horizon for what is coming,” he said.

The population has expressed alarm that the same hand the Government extended to reduce VAT they have used to introduce VAT on electricity and water. Meanwhile the private sector has expressed concerns that the Government plans on eliminating all zero-rated items from taxes and make them exempt.

Finance Minister Winston Jordan during his Budget presentation announced an expansion on the list of exempt items and an elimination of all zero-rated items, excepting those relating to exports and manufacturing inputs. The exempt items include things like bread, flour, unprocessed wheat, toilet tissues in rolls, vegetable seeds, paddy, onions, garlic, potatoes and split peas, among other things.

However, Georgetown Chamber of Commerce and Industry President Vishnu Doerga called on Government to reconsider its proposal of the removal of zero-rated items. He stated that while the GCCI is still analysing the presentation, it is their opinion that Government has to avoid adding and increasing taxes that directly impact the cost of living in Guyana.

“One such example is the removal of the zero-rated items,” he said, noting that he is urging Government to reconsider this move.

“Small businesses can recover VAT and businesses will ensure that they still make a profit but the consumers cannot. Consumers will have to live with the higher prices of their products and services. We want for our people to afford commodities and services,” he said.