Tue | Feb 7, 2023

GCT exemption on basic foods welcome news

Published:Friday | May 25, 2012 | 12:00 AM


I am happy that the subcommittee set up by the Government made the recommendation that no general consumption tax (GCT) should be charged on basic food items.

If GCT were to be imposed, the poor would have difficulty finding the extra money to purchase these products. This would prevent them, especially young children and the elderly, from getting the adequate nutrition necessary for their growth and development.

Historically, whenever GCT is added to a product, it results in a decrease in sales of between 15 and 20 per cent.

If GCT is added to basic food items, a struggling family with $1,000 to spend will not be able to find the additional $125 to accommodate the increase. Any further increase would affect their ability to buy these products. They just don't have it.

I agree with the Private Sector Working Group that taxes should be increased to plug the loophole and increase revenue for the Government. However, I do not agree with charging GCT on basic food items.


Chairman, LASCO