Opposition Leader urges VINLEC to provide relief by removing VAT for domestic consumers

VINLEC, the lone electricity provider in the country, is being called upon to give its domestic consumers a “little break.”

The call came from Leader of the Opposition Dr Godwin Friday when he spoke on the New Times programme on Nice Radio on Monday August 21.

Speaking about rising prices and the difficulty many persons are having to make end meet, Friday suggested that St Vincent Electricity Services Ltd (VINLEC) takes “the VAT off, until the New year at least, and give consumers a little break.”

Friday argued that when VAT was first added to domestic electricity consumption, it used to be for consumers using 200 units and over, but this was later changed to customers using 150 units or more of electricity.

As a result, more domestic consumers are now paying 16 per cent VAT for their use of electricity.

Friday said the removal of VAT from domestic consumers will not hurt VINLEC, as the VAT revenue is paid to the Government.

“Why should government profit from the hardship that people are feeling now?” Dr Friday asked, as he suggested the VAT removal.

In addition, the NDP continues its call for a general reduction in VAT rate in SVG from 16 per cent to 13 per cent.

He said the rate reduction will be “to give some relief to the people.”

Claiming that the NDP will be the government for all the people, the Opposition Leader said “we cannot go forward with one side rowing in one direction, and the other side rowing in the other direction.”

On Monday, Friday said the real cry of the people “is the high cost of living.”

“You go to the grocery store one day and you pay a certain price for something; you go back two weeks later and the price has increased.”

He also wondered about the ability of small retailers to pass all these increases on to their customers.

“The price of goods in the grocery store, is what is upsetting the people of this country.”

Friday added that government is getting a “windfall” from rising prices due to the war in Ukraine.

The NDP leader suggested that “it is only fair if they pass that back on to the people.”

Relating the hardships some people complain about, the NDP president said “You know how many people come to me now with those basic things; water, gas and VINLEC? Things you used to be able to meet, you can’t anymore.”

He expressed the opinion that with the rising cost of food stuff, some people have less money to pay their bills.

“Nobody wants to see their children looking at them and they can’t provide food on the table.”

As he called on government to provide relief to the people in the country, Friday said “we have to look after our most vulnerable.”