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FM
Former Member

Updated: Environmental tax reintroduced; VAT to be paid on water, electricity; Old Age Pension increaesed

 

by Derwayne Wills 

Guyanese will now have to pay Value Added Tax (VAT) on water and electricity consumption above a certain level, while the overall of Value Added Tax on businesses has been reduced to 14 percent on companies, Finance Minister Winston Jordan announced in the 2017 National Budget.

In a move that has left many puzzled, Finance Minister Winston Jordan in his Budget 2017 presentation has proposed the reduction of the Value Added Tax (VAT) from 16% to 14%. The Finance Minister has also proposed 14% VAT be added to electricity bills exceeding $10,000 monthly and water bills exceeding $1500 monthly.
 
Jordan’s announcement was met in the National Assembly by shouts of disagreement coming from the opposition benches, but the Minister maintained that the promise to alter the arrangements for VAT was “made in our Manifesto.”
 
“The hue and cry about VAT on electricity is just that,” Public Infrastructure Minister David Patterson told Demerara Waves Online.
 
Patterson anticipates that some 40% of persons within the lower income bracket would not be required to pay this increase, especially since “most of the vulnerable persons light bill does not reach $10,000 per month. Everybody knows that. It’s just a big hue and cry from the opposition.”
 
Minister Patterson, who has responsibility for the country’s energy sector, said there are initiatives to help persons from the lower income bracket whose light bill currently exceeds $10,000. Those include energy saver bulbes and assistance from the Guyana Energy Agency, he said.
 
Minister Patterson does not see this as an added financial burden for citizens since “VAT is being lowered to 14%. It is coming off of everything else. Alcohol beverages, food, and every other thing it is. The only thing it would be added to is electricity and water… All you have to do is conserve on electricity, conserve on water and that’s one of the greatest things. That’s not an imposition at all.”
 
Finance Minister Winston Jordan did propose “to expand the list of exempt items and eliminate all zero-rated items, with the exception of those pertaining to exports and manufacturing inputs.” That information will be provided in the estimates which will be released to the media tomorrow morning.
 
Opposition Leader Bharrat Jagdeo feels differently about the Finance Minister’s budget. Jagdeo, during a press conference after the budget, said removing the list of exempted items is not a decision that will help poorer people since food consumed on a daily basis could be VAT-able.
 
“If you are a lower income and 80 percent of the things I consume are zero rated,” Jagdeo explained, “now I have to pay on all those items 14% plus the electricity and the water, how does it help me? It affects poor people disproportionately.”

Jordan said local and foreign beverage companies would from January have to pay GYD$10 per unit (bottle or can). The law will be amended to create a level playing field for local and foreign companies in keeping with Caricom’s Treaty of Chaguaramas.

In the area of VAT on businesses, he said the threshold has been hike from GUY$10 million to GYD$15 million to reduce the burden on the Guyana Revenue Authority and target those that account for a large revenue earnings.

Meanwhile, Old Age Pensions have increased t0 GYD$19,000 and GYD$7,500 for monthly Public Assistance.

Replies sorted oldest to newest

Our Hero Bharat sums it up:

“If you are a lower income and 80 percent of the things I consume are zero rated,” Jagdeo explained, “now I have to pay on all those items 14% plus the electricity and the water, how does it help me? It affects poor people disproportionately.”

The AFC/PNC consists of a bunch of Ko Ko Beah Crab dawgs.

FM

VAT on drinking water? Well, Berbician Dr Ramayya can show people how to drink pee. Seriously, 14 percent tax on water and light bills will squeeze the poor and middle classes.

FM
Last edited by Former Member

In the old days I use to hear the phrase, smarter the government, wiser the population. I consider it a survival tool for the population to survive under different circumstances. Why people cannot improvised on water consumption and solar energy? Eco-toilet is cheap and convenient, and can save a regular family 90 gallons of water per week. The waste matter turns into manure and the urine converted into water for the plants. 

The toilet it totally odorless.

Conserve rain water and think solar and alternative energy. People can win the government if they wanted to. 

FM
Gilbakka posted:

VAT on drinking water? Well, Berbician Dr Ramayya can show people how to drink pee. Seriously, 14 percent tax on water and light bills will squeeze the poor and middle classes.

Lick your wounds Gil, this is the government that you supported and financially too. Ask them back for your hard earned donations.

FM
asj posted:

Updated: Environmental tax reintroduced; VAT to be paid on water, electricity; Old Age Pension increaesed

 

by Derwayne Wills 


Minister Patterson does not see this as an added financial burden for citizens since “VAT is being lowered to 14%. It is coming off of everything else. Alcohol beverages, food, and every other thing it is. The only thing it would be added to is electricity and water…”
 
Finance Minister Winston Jordan did propose “to expand the list of exempt items and eliminate all zero-rated items, with the exception of those pertaining to exports and manufacturing inputs.” .

What does he mean?  What is it coming off of and what remains?  What is exempted and what is zero-rated?

FM

Environmental taxes etc were discussed at the recent meeting on climate change in Morocco. People who have electricity consumption above a certain amount should pay more, or cut down. We do not have infinite resources.

Mr.T
Mr.T posted:

Environmental taxes etc were discussed at the recent meeting on climate change in Morocco. People who have electricity consumption above a certain amount should pay more, or cut down. We do not have infinite resources.

It is effectively an increase in electricity and water rates above a certain level of consumption!

FM
Prashad posted:

This would be a perfect law for the East Indian people of Guyana not to pay. Anti-koolie taxation without representation will never hold my people in invisible racist shakles.

How would they not pay?  It will be part of the bill I assume.  Don't pay and lose the service!  I can see the case for solar panels on many people's rooves!

FM
Last edited by Former Member
Mr.T posted:

 People who have electricity consumption above a certain amount should pay more, or cut down. We do not have infinite resources.

Listen joker, Guyanese, even at high levels, do not consume electricity like we do in the developed world.  So, I don't think the Morocco accord intended to target small 3rd world nations and their citizens!

FM

Someone using a meger 175 kWh a month will have a bill of G$10,000.

But the ministers, president and past presidents don't pay these bills.  Talk about the nincompoops talking care of themselves while the people have to suffer!

FM
Mr.T posted:

Environmental taxes etc were discussed at the recent meeting on climate change in Morocco. People who have electricity consumption above a certain amount should pay more, or cut down. We do not have infinite resources.

The taxes on electricity could have been avoided if Linden pays for their electricity. They use the most electricity in Guyana and they pay the least. The government cannot do anything or else they set fire to everything.

FM
Mr.T posted:

Environmental taxes etc were discussed at the recent meeting on climate change in Morocco. People who have electricity consumption above a certain amount should pay more, or cut down. We do not have infinite resources.

Dummy, this is not targeted at "people" using electricity but rather businesses. These batty wipes in power are giving with one hand with the reduction in VAT and squeezing the business community to make up the deficit. 

FM
Gilbakka posted:

VAT on drinking water? Well, Berbician Dr Ramayya can show people how to drink pee. Seriously, 14 percent tax on water and light bills will squeeze the poor and middle classes.

It refers to VAT on bills above a certain level.

What folks should do is to furnish to the goodly Minister of Finance the light and water bills paid by teachers, who are scarcely on overpaid bunch.

If their bills will become taxable then this should be said, as he is implying that its only the oligarchs who will be impacted.

The PPP, the party of the oligarchs, has no credibility on this issue.

FM
skeldon_man posted:
.

The taxes on electricity could have been avoided if Linden pays for their electricity. They use the most electricity in Guyana and they pay the least. The government cannot do anything or else they set fire to everything.

Taxes can be avoided when GuySICKO hands back the US$600 million that it has received in bail outs.

FM
Prashad posted:

. Anti-koolie taxation without representation will never hold my people in invisible racist shakles.

Ok your wife just reduced you to being a hen pecked man, who is petrified of her. I can tell when this happens as you begin to post stupidness.

Are you claiming that only Indians consume water and electricity?  In fact consumption of such is usually higher in urban areas.

FM
caribny posted:
skeldon_man posted:
.

The taxes on electricity could have been avoided if Linden pays for their electricity. They use the most electricity in Guyana and they pay the least. The government cannot do anything or else they set fire to everything.

Taxes can be avoided when GuySICKO hands back the US$600 million that it has received in bail outs.

PNC supporters and your brothers also benefit from Guysuco. It's called trickle down. Go to Skeldon and see how many blacks work in the sugar industry. Go to Corriverton Market and see how many black folks peddle their stuff there.

FM

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