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adanna
New Peeper
Registered:: July 14, 2008
Posts: 154
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The Guyana Government intervened to cushion the rising food and fuel prices that have gripped the world. No CARICOM Government has made the kinds of intervention that Guyana presented. Here is a sample:
• Increase in old age pension from $3,675 to $6,000 monthly
• Public assistance to vulnerable persons from $2,470 to $4,500
• 5% across-the-board wage/salary increase as of January 1, 2008
• Persons earning up to $50,000 per month will receive $4000 per month until the end of 2008.
• Additional zero-rated VAT items- nearly all food items are now zero-rated.
• Subsidies on flour to bakers to cushion the price of bread.
Eric's_Revenge
Knows the ropes Member
Location: "Somewhere in Iraq"
Registered:: January 13, 2003
Posts: 8868
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I can soon see a mad rush of Caricom nationals fleeing to the shores of Guyana. Wink

Jamaican beggers will become kings on earth in GT's streets.

Trini coolies will abandon black ruled Trinidad forcing T&T to create a new "Berlin wall" in the caribbean sea out of shame and outrage. Big Grin
Communicator
Member
Registered:: April 04, 2008
Posts: 2076
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quote:
Originally posted by adanna:
The Guyana Government intervened to cushion the rising food and fuel prices that have gripped the world. No CARICOM Government has made the kinds of intervention that Guyana presented. Here is a sample:
• Increase in old age pension from $3,675 to $6,000 monthly
• Public assistance to vulnerable persons from $2,470 to $4,500

(B]$6000 a month is about $30US a month. A two bedroom back cottage goes for $25,000 a month. In-town transpie is how much if you have to go to Bourda or Stabroek to buy greens and groceries? Based on this, let us not even talk about public assistance to vulnerable persons.[/B]

• 5% across-the-board wage/salary increase as of January 1, 2008

What is the minimum wage? How much is one required to have, at a minimum, to live decently in Guyana?

• Persons earning up to $50,000 per month will receive $4000 per month until the end of 2008.
• Additional zero-rated VAT items- nearly all food items are now zero-rated.
• Subsidies on flour to bakers to cushion the price of bread.

Didn't the government state that revenues accrued from VAT exceeded expectations? That's the people's money they paid to government on VAT that the government is giving back the people and you want to pass this off as credit to the government?

If the government stops receiving loans and grants, overseas Guyanese stop sending remittances and barrels, and drug barons and money launderers are shut down, what do you think would be the actual state of the economy?
adanna
New Peeper
Registered:: July 14, 2008
Posts: 154
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quote:
Originally posted by Communicator:
quote:
Originally posted by adanna:
The Guyana Government intervened to cushion the rising food and fuel prices that have gripped the world. No CARICOM Government has made the kinds of intervention that Guyana presented. Here is a sample:
• Increase in old age pension from $3,675 to $6,000 monthly
• Public assistance to vulnerable persons from $2,470 to $4,500

(B]$6000 a month is about $30US a month. A two bedroom back cottage goes for $25,000 a month. In-town transpie is how much if you have to go to Bourda or Stabroek to buy greens and groceries? Based on this, let us not even talk about public assistance to vulnerable persons.[/B]

• 5% across-the-board wage/salary increase as of January 1, 2008

What is the minimum wage? How much is one required to have, at a minimum, to live decently in Guyana?

• Persons earning up to $50,000 per month will receive $4000 per month until the end of 2008.
• Additional zero-rated VAT items- nearly all food items are now zero-rated.
• Subsidies on flour to bakers to cushion the price of bread.

Didn't the government state that revenues accrued from VAT exceeded expectations? That's the people's money they paid to government on VAT that the government is giving back the people and you want to pass this off as credit to the government?

If the government stops receiving loans and grants, overseas Guyanese stop sending remittances and barrels, and drug barons and money launderers are shut down, what do you think would be the actual state of the economy?





The Government's relief package is just a cushion; it is not absolute in terms of it being a panacea to relieve all the difficulties emanating from rising world prices of food and fuel. I am sure many people would feel that the relief package is of some help. You have to remember that before VAT, there was a 30% consumption tax which was removed with advent of VAT. Businesses, prior to the removal of the consumption tax, did not have to declare publicly on an invoice what the amount of the consumption tax was on the price of an item to the final consumer. The amount of VAT by law, however, is declared on an invoice. And so a consumer did not know how much of the price was related to cost, tax, and profit; the price formation for a commodity was not transparent.

The point of all of this is that people were paying more on consumption tax than what they are paying today on VAT in the consumer market. and so if there were no VAT and no VAT revenues, and you still had the consumption tax, with rising world food and fuel prices, Guyanese consumers would have been experiencing astronomical difficulties than what we may perceive as difficulties today.
Communicator
Member
Registered:: April 04, 2008
Posts: 2076
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Look, the only people who have cushions to soften the impact of a rocky economy are those with connections to the PP and government, or those fortunate to have overseas relatives send them reasonable remittances each month.

For a socialist government, is VAT the government's way to generate wealth in order to distribute it? OVERTAX THE PEOPLE AND THEN TAKE CREDIT FOR GIVING THEM BACK SOME OF WHAT YOU TAKE FROM THEM! It's called voodoo economics.
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Guyana.org    Guyana News and Information Discussion Forums  Hop To Forum Categories  Political Discussions    The Guyana Government intervention to cushion the rising food and fuel prices

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