NDP to remove VAT from 140 items, if elected

Leader of the opposition Arnhim Eustace has reiterated that if elected to office, the New Democratic Party (NDP) will remove the 15 per cent Value Added Tax (VAT) from about 140 items that have impacted the cost of living.

Speaking at a political meeting at Murray’s Village in the East Kingstown constituency last Saturday, Eustace said the VAT had been “overdone” by the governing Unity Labour Party (ULP){{more}} and the NDP would remove it from several common food items, agricultural products, school supplies, sporting gear and basic medication, where it exists.

Among the food items from which VAT will be removed are: farine, eggs, fresh fish, tri tri, flour, blackfish oil, coconut oil, callaloo, figs, cabbage, passion fruit, limes, lemons, oranges, guavas, sweet potatoes, dry coconut, yam, dasheen, peas, eddoes, pumpkin, pawpaw, plumrose, banana, mango, sweet plantain, corn beef, lentil peas, pig tail, cheese and sausage.

“Things you have to use all the time…,” he said.

The Opposition Leader said placing VAT on locally produced agricultural products negatively affects farmers.

“So many agricultural items that are produced in St Vincent and the Grenadines on VAT… and the farmer will sell less when the price gets higher, so it’s hurting the local farmers also.”

Reading from a list, Eustace added that under his administration, VAT will be removed from school uniforms, socks, pants, overalls, skirts, school bags, pencils, pencil sharpeners, erasers, notebooks, text books, rulers, lunch kits and crayons.

“You talk about education revolution; there’s no need for these things to be on VAT.”

The NDP leader stated that he is not against the VAT, but thought should go into which items the tax is applied to.

“If you are implementing it, you think before you implement it and you think before where you’re putting it… those things could be 15 per cent or more cheaper if they were not on VAT,” he said, adding that people are struggling to get their children into schools and this year has been the worst.

Eustace stated that people have difficulty buying medication for ailments such as glaucoma, cataracts, diabetes, hypertension, kidney disease, asthma, heart disease and dialysis machines.

“… So, even in basic health requirements, they are carrying VAT also; that needs to be looked at again in a sensible way.

“…Those kinds of sensitive items that are so needed for the population should be removed and the New Democratic Party will remove them,” he declared.

The Leader of the Opposition also noted that included among the list of items from which VAT will be removed are certain sports items.

Eustace said the Government collected $75 million from VAT in 2014, which is more than $6 million dollars a month.

The Opposition Leader said it is because the list contains thousands of items that the Government can collect $75 million from VAT.

“So, we have to look at these things very carefully and come up with a VAT list that recognizes the state of people’s pocket, that recognizes the state of our economy and therefore… give more support to those who need it most.”

According to Eustace, the VAT is causing “very great heartache” to many people and it bothers him.

The Value Added Tax Act 2006 was passed in the House of Assembly on October 2, 2006 and was implemented on May 1, 2007.

In St Vincent and the Grenadines, once a drug is classified as a prescription drug, whether it is bought over the counter or by a doctor’s prescription, it is VAT exempt. Fruit and vegetables bought in the vegetable market also do not attract VAT, but those purchased in the supermarket do.(AS)