Opposition Leader Joseph Harmon has taken umbrage to the reimposition of 40% Common External Tariff (CET) on various soaps, including hand soaps. CET is the rate of tax forced on products imported from outside nations into Partner states.
Harmon said that the move is unconscionable given that Guyana remains in the throes of a global pandemic and a central feature of the measures to prevent the spread of COVID-19 is for persons to regularly and thoroughly wash their hands with soap. The citizenry is more dependent on soap now than ever before, he said.
He added that it was his government that removed the CET on soaps after the pandemic hit last year. This was intended to increase the availability of soaps and reduce the prices to make them more affordable to ordinary people.
“This re-imposition of 40% tax on soap by the installed PPP regime is unconscionable and will imperil the health of our people as many people will now not be able to afford to buy soap and others will have to economize and use soap less given the inevitable astronomical price increases which will follow. This 40% price increase is in addition to skyrocketing price increases for basic food items – rice, sugar, flour, oil, milk, meats, and vegetables,” Harmon stressed.
He added, “This PPP does not care about the health and safety of Guyanese nor do they care about taking every action to help curb the spread of COVID-19. Their actions and policies are helping to spread COVID which is already out of control. We call for both an explanation for this rash re-imposition and the immediate suspension of this 40% hardship tax which is not necessary nor is it humane at this time as we continue to battle the COVID-19 pandemic.”
Guyana Standard understands the reimposition was in keeping with Guyana’s obligations under the Revised Treaty of Chaguaramas, and a decision of the Forty-Ninth Council for Trade and Economic Development (COTED). Soaps that will attract this CET are Medicated soaps, others in the form of bars, cakes, molded pieces or shapes, others for toilet use, and hand soaps. Guyana Standard was informed that these products will attract the 40% CET with effect from June 01, 2021.
