What the people say about… VAT on utilities
‘As citizens we are already taxed with so many things even our basic necessities. Food, clothing etc. Now think about low income families living in the rural areas, these families are often times very large families for a father or mother to provide, giving them the best they can is hard work. Salary is already taxed big time. Light bill and electricity bills are already enough and to put added tax on these bills means added pressure for the breadwinner of the home. Think about those persons who don’t have a stable job (carpenters, masons, etc.) this is more pressure for them. How about the pensioners who have to provide for their grandchildren. I’m saying to implement tax on water and light is just not a smart idea especially not when Guyana is known as the land of many waters. Use the water to provide electricity, put systems in place so that this can be implemented. They have to think about the poor ones in their midst and not only themselves if they the government want to see progress in their country.’
‘To answer the question they are trying to obtain revenue for the development of our country. However, adding water to VAT I don’t think that is fair. There are many people who don’t have access to water and depend upon their neighbours to supply them. Now with the VAT on water they might be limited to how much they can get or might not get at all. I would have been happy if the threshold for the water had been higher I think it is too low. With the electricity I don’t really have a problem with that.’
Rosean Playter ‘Putting VAT on the water is really something because you already charging them for how they use the water. For those who have meters they pay for how much they use why VAT them now when they already paying an excessive amount. If they had a fixed rate and they want to VAT them is a whole different thing altogether. The same goes for the electricity. They’re not getting an increase for their salary, all of them aren’t even public servants and many don’t work. How then do they expect them to pay on this VAT?’
‘I believe the government has all the right intentions to grant every Guyanese the right to a good life and this is being done through major investments into social services and infrastructural development - we understand the money has to come from somewhere but too much is being done too fast and unfortunately on big unnecessary projects like the Jubilee Park (which has little accountability) or a drastic raise in Ministerial salaries; a complete disregard thus far for public servants, nurses and teachers. Implementing a tax on Guyana’s named- for natural resource is shocking and paying more for an unstable, poor energy service is ghastly. People would not mind paying more for better quality but the government has given no assurance that these services will improve. People are angered that they will be paying more for less than deserved. Businesses will off-set these bills on customers, spending power will be reduced, investments lessened. The only beneficiaries of this budget is the income the government will earn. We will soon see the middle class, as small as they are crippled and the working class shrink; the budget is not one with the people or social investments in mind but on increasing government income for more lavishness we do not need.’
‘I have to say I’m against it. I’m hard pressed to see how exactly the proposal is supposed to help citizens. Water and electricity are basic utilities. Why tax them further? Especially when we consider the fact that the service by GPL already leaves so much to be desired as far as reliability. Okay, so you’re going to add VAT to the bill, fine. But my question is will this increase have a correlating improvement in the service offered?’
Shemuel Lewis ‘I believe the news regarding placing VAT on water and light has come at a difficult time for most Guyanese. Change is difficult and hard. If it is in the best interest for the country at large, if it will help build a better Guyana for future generations, then I believe it is worth the sacrifice, worth the hardships. This government has done a lot. The Guyanese people have placed their trust in this parliament, and I believe we should continue to trust their leadership. If it is not in the best interest of the people, time will tell, and we will fight for the necessary changes as one people and one nation.’
‘I think this proposal for VAT on water and light is ridiculous. They took it away from some food items and persons thought it was all smooth sailing because the cost of living was made a little lighter for them but now it’s going to put pressure on the poor man’s pocket. If they want to do that I think it should start at 1% and increase gradually as the years go by. Not forgetting you can’t place VAT on those things without raising salaries and I know of some pensioners who still have to pay water and light bill what will happen with them because the fact is they only getting approximately $ 18,000 a month. How will they survive? Why do they have to punish because they are unable to deal with the hassle of going to get those things free? There are many facts to consider here but it will be unfair to the poor people if such a bill is passed. We can’t always think about the top of the food chain we should consider those at the bottom too. The crime wave will be likely to increase because people will have to get more money to meet these requirements to live.’
Giovanna Hodge ‘On one hand I believe this decision was made without due consideration to the impact it will have on the country’s middle class, single parent families and homes with a single bread winner. On the other hand I do understand the state’s need to generate revenue to help meet its expenses and the citizens’ need to conserve while making use of these valuable resources. The Government should have placed tax on something else rather than light and water. This is not the change I looked forward to seeing when I voted. If it’s a way for the country to gain income they would still have to inform persons as to why they are doing it. Besides that most person’s water bill is usually more than $1,500.’
`The country’s national utility suppliers do not currently possess the capacity to provide water and electricity at a level that meets the needs of the entire populous. Therefore any wastage of these already inadequate resources is detrimental to the progress of this nation. The decision to tax high usage levels of these utilities is therefore a good means of encouraging the conservative use of these valuable resources.’