There is a lot of uncertainty in society regarding value added tax (VAT). This form of taxation came into effect on Sunday 1 January 2023. The Consumer Circle is not against it, but is in favor of proper implementation. The ambiguities that play a role do not go unnoticed by the organization.
President Albert Alleyne shares the Consumer Circle’s view regarding VAT in a conversation with the Communication Service Suriname (CDS).
The Consumer Circle sees VAT as a good thing, but preparations for its introduction should have been better. “What you’re getting now is consumers footing the bill,” notes President Alleyne. He believes that in addition to the 12% turnover tax, consumers now have to pay 10% more for goods. “Even though the government has said that no VAT should be collected during the first three months, we note that there are still retailers who collect VAT,” the president points out.
According to him, what is even more confusing is that there are products on which VAT cannot be levied. However, it turned out that 5% VAT is still charged by retailers on these goods. “As a result, the prices of all products have gone up, so that consumers can no longer follow this situation,” says Alleyne.
He also believes that the VAT levy existed before the introduction. “Retailers raised the prices of their goods ahead of the effective date,” the president clarified.
The Consumer Circle receives complaints every day from consumers who have all kinds of questions. President Alleyne is proposing to suspend VAT for the next six months to properly explain things. He believes it is important that consumers are protected and well prepared, but also know how VAT is charged and to which products it applies. In relation to the above, the chairman hopes that more information will be provided to the company.
