The Opposition UNC’s executive meeting tomorrow will consider calls by UNC groups and civil society organisations to boycott businesses which haven’t reduced VAT from 15 per cent to 12.5 or who may be abusing the new VAT regime, UNC chairman Khadijah Ameen says.
She said no decision has yet been taken and the meeting would examine perspectives of both consumers and businesses.
Ameen said the party had received expressions of concern from groups in the party and civil society organisations about businesses violating the VAT system prescribed by Government. She noted calls for a “boycott” of sorts. She said complaints have come from consumers in the East- West Corridor, South and Central.
A post on UNC’s Facebook page has called for consumers to “Shop Local” — supporting small family run businesses — which would help families rather than shopping otherwise, which could help a “CEO buy a third holiday home.” The post generated a number of “likes”.
Also, one restaurant patron on checking her receipt found that VAT of 15 per cent was added. The person queried it on Facebook but got no explanation. Government’s Communication Minister Maxie Cuffie said last week fast food businesses should have dropped the VAT on products from 15 per cent to 12.5 per cent.
Ameen said: “Not only have people complained VAT is being placed on some items which still remain on the list of zero-rated items, we have also received reports that people’s bills from eating places are generating VAT of the previous 15 per cent level rather than 12.5 per cent.
“Those particular complaints have come mainly from Port-of- Spain and some from Central,”
Ameen said complaints have also been received of VAT placed on electronic items, though this is supposed to be 12.5 per cent,
She added: “We have called on Government to ensure proper pricing, not only at supermarkets but at every place of commerce, and that pertains to items on which VAT is reduced from 15 per cent to 12.5 per cent plus items on which VAT has now been implemented.
“The other side the argument we have to consider is that some business people and vendors are telling us that while VAT on some products have been reduced, the price of the ingredients now have VAT and it’s difficult to keep the price of a product down.
“We saw bread merchants rasing certain prices resulting from this. So the situation is exactly what we had warned about, when Government made the VAT announcement, that everything would increase with this measure.
“Some merchants are also telling us their delay in implementing the proper VAT rate is due to an electronic hitch since they have to recalibrate their cash registers to reflect the new VAT regime.”
Ameen said her personal position ewas that the consumer had the ultimate power whether to buy or not,
“However, Government’s position on the VAT regime implementation has so far been reactionary. They only implemented a VAT hotline for complaints and published the list of VAT-rated and non-rated items after complaints began pouring in.
“We call on them to establish proper regulator and monitoring mechanisms to ensure compliance and consumer protection and that all businesses will be in line with the law.
“As a result of all of what’s been occurring, we are also calling on Government, in its mid-year review soon, to reconsider their position on VAT on basic items as well as food.”
Trade Minister Paula Gopee-Scoon was not available for comment yesterday.