Flour now VAT free; NGOs to be granted duty free concessions

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vintage rolling pin

By Jomo Paul

Minister of Finance, Winston Jordan  [iNews' Photo]
Minister of Finance, Winston Jordan [iNews’ Photo]
[www.inewsguyana.com] – Finance Minister, Winston Jordan has cleared the air on some concerns regarding items that were recently listed to be free from the Value Added Tax (VAT).

At a post cabinet media briefing, he revealed that after careful consideration, some of the items that were announced will no longer be eligible, but some other items will be added to that list.

During his Budget speech, the Finance Minister had listed the new items on the VAT exempt list, which includes yogurt, cereals, fresh carrots, Milo and Ovaltine, Nestum, Mustard and Mayonnaise, locally-produced fruit juice, locally-made Chowmein, Vinegar, locally-made uncooked Pasta, Ketchup, Chicken Sausages in packets, locally-produced Chinese Sauce, Baking Powder, Liquid Detergent, household cleaning agents, rolls of paper towels, liquid detergent, household cleaning agent, and computer printers for non-commercial use.

He noted that pursuant to advice given, locally made fruit juices have been scratched off the list since the act would constitute discrimination and a breach of the Treaty of Chaguaramas while also being arbitrary to the regulations of the World Trade Organisation.

However, with fruit juice being taken off the list, flour has been added and now instead of wheatened flour alone being zero-rated, all flour will be VAT free. This, along with a supply of biscuits, has been added to the VAT exempt list.

Further, he announced that duly recognized charities and Non-Governmental Organisations (NGOs) will now be eligible for duty free concessions.

5 COMMENTS

  1. The contention of APNU-AFC before the elections was that 16% VAT was too high. They promised a significant reduction of VAT to 12%. We are still waiting for this significant reduction of VAT to 12%.

  2. With wheat flour prices reduced, it’s more roti for all! What happened to the rice flour on the shelves that the PPP promised would happen under this new Govt?

  3. ”……some other items will be added to that list”.
    That list of items which now attract zero VAT, could be hardly be considered EVERYDAY items used by the vast majority of Guyanese. Flour and other products derived from flour also rated zero VAT is good news. However, while some other items now attract zero VAT, others have been added. Could the Honourable Minister publish those items which now attract VAT? It’s no use giving with one and and taking back with the other. It’s trickery. Guyanese would not be fooled.It’s just like raising the amount of money pensioners receive monthly and then withdraw the subsidies that were given for electricity and water. They are now worse off.

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