Small “mummy and papa” shops will need to incur more expenses to install a Value Added Tax (VAT) Monitoring System and file VAT returns, said opposition member of parliament, Alvick Maharaj.
He made the comments while speaking in Parliament this morning.
“Now small and medium sized business are required to register for VAT and install VMS if income is above $50,000,” he said.
“Installation of VMS doesn’t come cheap. To install VMS, it will cost small to medium businesses close to around $10,000 to $15,000.”
Mr Maharaj said these businesses “don’t even make the type of profit” to install VMS or be registered in VAT.
“This will increase the burden of doing business. Most of this business are regarded as mummy and papa shops, whereby employer is the employee, him or herself.”
“Now even to lodge the VAT return, they will have to employ another person, which will come at a cost, so just imagine that what will happen?”
“Such lack of foresight coming from Minister of Finance is not acceptable. He is a professor. He doesn’t need a businessman to tell him all this, or a pharmacist to tell him this.”
