Rising cost of living due to external factors -Vice President

Vice President, Hon. Dr. Bharrat Jagdeo says the Government is paying attention to the increase in the cost of living which is due to external factors. He said the Administration is concerned about the situation, and is examining ways to help the people.

During a press briefing on Friday at the Arthur Chung Conference Centre, Dr. Jagdeo noted that the Government reversed over 200 taxes imposed by the Coalition when it took office in August. Those tax breaks meant that some $40 billion has been returning to the economy.

Despite the tax relief, the Vice President said the Government has noted the rising cost of commodities and construction material.

“We are very concerned about this… It is a big struggle, but since we have removed the taxes already, there’s a limit to what you can do.

But I want people to be conscious that we’re looking at the cost of living issues carefully. We are engaging the attention of the policy makers.”

The Vice President linked the increases to international manufacturers operating at limited capacity. Added to this, he said there have been significant increases in freight/ shipping costs, which in some cases have “doubled and tripled.”

He said the Government is seeking to increase its construction production capacity. To this end, the Guyana Geology and Mines Commission has been given the green light to grant quarrying licenses. 

“But in the meantime, we have to import,” Dr. Jagdeo noted.

Notwithstanding this, the Vice President believes that once the COVID-19 pandemic ends, production levels will increase, thereby reducing costs.

Meanwhile, the Ministry of Tourism, Industry and Commerce said recently that it is monitoring the increase in the cost of vegetables across the country.

Back in February, several consumers had complained of an almost 100 per cent increase in the cost of most vegetables at both markets and supermarkets. Research conducted by the Department of Commerce, within the Ministry confirmed the price increases.

Stakeholders in the construction sector have also complained about an increase in cost of steel, which skyrocketed due to increasing product and freight costs.

Minister Hon. Oneidge Walrond, and Senior Minister in the Office of the President with responsibilities for Finance, Dr. Ashni Singh met with stakeholders in January to discuss the increase.  

Minister Singh had noted that the Government has moved away from fixed prices and a regulated market to a more open and competitive environment.

The Finance Minister had also promised to examine the legal and administrative implications of adjusting taxes associated with shipping costs.

Minister Walrond had committed to engaging agencies under her supervision, such as the Competition and Consumer Affairs Commission and the Guyana National Bureau of Standards to safeguard against unscrupulous business practices and to ensure quality.