Rising food prices saga: wheat to be zero-rated, legislation to be drafted to deal with unscrupulous businesses-Dr. Luncheon tells media  

Georgetown, GINA, April 24, 2008

As Government continues to monitor and consult with communities on rising food prices worldwide and its effects on Guyanese countrywide, Head of the Presidential Secretariat and Cabinet Secretary, Dr, Roger Luncheon told the media that a number of measures will be put in place by the Administration to deal with the issue.
            “The Cabinet at its most recent meeting followed up on its regular review of the impact of price increases in Guyana. Importantly, the meeting examined the reactions from the rural, the urban, the riverain and hinterland communities that were being consulted during the ongoing public consultations,” he related.
            Dr. Luncheon said that Cabinet Ministers have advised that the reality of world commodity price increases providing the main cause for the increases in Guyana was readily acknowledged during the consultations and the consultations all stressed that coping mechanisms were necessary, principal among which were the Agriculture “Grow More Food” drive; calls for more direct interventions to stabilise food prices and calls for more direct interventions to cushion the impact on vulnerable communities and populations.
            He noted that Cabinet has been continuing its own examination of additional steps to address food price increases and has decided that, further to the more recent zero-rating of flour to also zero-rate wheat.
            “Attention to problems in the distribution system, and particularly trading in the retail sector, led to a decision to draft legislation to deal with unscrupulous behaviour by middlemen and retailers,” the HPS emphasised.
            He contended that hoarding was the prime example of behaviour leading to artificially introduced shortages and consequential price increases.
            The Cabinet Secretary posited though that Cabinet resolved to finalise the discussions on additional measures to cushion the impact of price increases on the Guyanese population.
            In the meantime, Government over the past few months has been taking a number measures to cushion the impact of the rising prices including taking away the excise tax from diesel and reducing tax on gasoline.. The Administration has also zero rated additional food items which once attracted the Value Added Tax (VAT).  

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