Lindeners protest VAT charges on electricity

Feb 17, 2009 News

Residents of Wismar, Linden are refusing to accept Government’s proposal to make them the only community in Guyana to be subject to VAT payments on their supply of electricity.

Yesterday, they proceeded on a protest march from the Linden Utility Services Cooperative Society Limited (LUSCSL) office on Burnham Drive, Wismar, across the river to the GRA office on Casaurina Drive, thence to the Regional Democratic Council Office on Coop Crescent and Republic Avenue, Mackenzie.

Throughout the protest, there were such chants as, ‘Father forgive them, they only know to punish poor people.’

At the RDC office, the residents were addressed briefly by Secretary of the Board of Directors of LUSCSL, Charles Sampson, who told them to come out in greater numbers tomorrow morning to continue the protest action.

Sampson told them not to send their children to school tomorrow, when all the transportation services will be shut down, including the ferry boat service.
He pointed out, “Over the years, we’ve been able to run the Electricity Coop (LUSCSL) better than GPL; and now they want to take it away!”

Regional Chairman Mortimer Mingo, who is also a member of the LUSCSL Board of Directors, told the gathering that their cause was a just one, which the RDC is prepared to stand firmly behind.
Mingo added that the residents of Wismar must be treated fairly, and not be singled out for discriminatory treatment.
“We must remain organised and vigilant,” Mingo exhorted residents. He advised them to return to their homes and offices and recommence the protest action tomorrow.

The protest action was planned after LUSCSL was served with a letter from the GRA informing its management that they owed $11.9 million in taxes, which was for the period April to December 2008. The Board and Management of LUSCSL subsequently held a meeting with their membership, who mandated that a march be organised to indicate their rejection of  GRA’s proposal.

Manager of LUSCSL, Ms Esme Yangapatty, in an invited comment, said that LUSCSL is not in a position to pay the exorbitant amount of money that the GRA is currently claiming, and as such increases would have to be made on electricity bills, which consumers can ill afford at this time.
LUSCSL currently purchases electricity from the Linden Electricity Company Inc. at a rate that does not attract VAT payments.

Wismar residents are concerned that VAT is not levied on electricity in any other part of Guyana.
It was pointed out that this situation is being attributed to LUSCSL not being registered under the Electricity Sector Reform Act of 2005.
It was, however, further pointed out that LUSCSL had applied several times for a distribution license, even as late as last year; but, to date, approval has not been granted.

Residents and the LUSCSL are calling on the GRA and the Government to revisit this unilateral decision to impose this increase on the membership of the electricity cooperative (LUSCSL), and are calling on their Parliamentary representative, Ms Vanessa Kissoon, and Prime Minister Samuel Hinds, who has responsibility for the electricity sector, to address this issue urgently.