President says VAT on water, electricity not punitive

President David Granger has thrown his support behind the implementation of VAT on water and electricity, contending that the purpose of taxation is to get money to execute Government services.

Speaking to journalists on his weekly programme “The Public Interest” on Thursday, the President said the measures being implemented by Government should be seen as beneficial and not as a punishment.

“Where does the money come from to provide services? Through taxation, and VAT is part of the taxation system of the country. It is not just to earn revenue; this is also intended to guide people’s choices. In the case of water and electricity, it is not punitive, it is curative in the sense that persons who waste water would now be more careful in their use of water, so it’s not just a tax on water, it’s a tax on excessive use of water,” the Head of State explained.

He said the tax must be interpreted through the measures and policies the Government intends to achieve and implement.

“It’s not taxes for the sake of taxes; it’s a tax to modify public behaviour,” the President said.

When questioned if a monthly bill of over $1,500 is excessive use of water, the President said the majority of persons who are poor or earning a low income do not use that amount of water.

“I would consider it average and persons who use excessive amount of water should pay the full VAT, but then again the VAT has been reduced to 14 per cent.”

these fools are worse than PPP