SAYING the country is on the brink of a food crisis, the Opposition is calling for the removal of VAT on all 7,000 food items it previously zero-rated and for agricultural buildings and lands to be excluded from property tax.
Couva North MP Ravi Ratiram said food security is being compromised by Government’s uncaring policies. He pointed to the what he called the sharp escalation of food prices at both the supermarket and farmers' markets.
He said Agriculture Minister Clarence Rambharat has failed farmers to the extent food prices may become unrealistic.
At the United National Congress (UNC) Monday night Virtual Report, Ratiram said, “The cost of basic foodstuff has become unrealistic, even with Finance Minister Colm Imbert’s mamaguy pigtail budget, where he zero-rated a few (12 or so) food items.”
Recalling the removal of value-added tax (VAT) on 7,000 food items under Kamla Persad-Bissessar when she was Prime Minister, he said the removal of VAT on some 12 food items by this administration is not a grand event.
“Government is simply trying to undo some of the damage and suffering that they had placed on the pockets of our poor and vulnerable citizens.”
Persad-Bissessar, who spoke on the same platform, said, “People cannot afford food. Farmers are not encouraged and facilitated to grow food. Importers cannot import food and shelves are empty, items are no longer available.
“The Government has been making much ado about nothing, celebrating the removal of VAT from some basic food items starting November 1. To come now and give people biscuit and pigtail to eat – it is all a pappyshow. They gave with one hand and took away with the next...and they want you all to be grateful.
“Look, Rowley, I say remove VAT from all 7,000 items now. Then you would have done something.”
Ratiram said the prices of some agriculture inputs had already increased and suppliers have already signalled to agricultural shops an increase in the price of certain chemicals from as early as next week. He said this means the cost of production will rise again and when this happens, consumers would feel the effects, because of Government’s mismanagement and incompetence.
“My colleague the MP for Mayaro, Rushton Paray, spoke to the savings that could be seen, if the Government uses pre-covid cost, insurance and freight (CIF) values to levy customs duty and VAT, so that importers can get an ease-up and thus pass on these savings to customers."
He said while Guyana has adopted this approach, the TT Government has ignored it, so farmers, wholesalers and retailers cannot afford to absorb these rising costs.
Apart from a shortage of inputs like animal feed, praedial larceny, locust infestation and flooding which have both a direct and indirect impact on supply, he said the imposition of property tax on agricultural properties would have dire consequences.
“Do you know what would happen to the price of locally grown food in this country when our farmers have to pay property tax on their gardens, on their chicken pen, their duck
