Waive Vat, says consumer watchdog
Friday October 06, 2006

The consumer council has requested a waiver of VAT from FEA's fuel surcharge to provide some relief to consumers.

Chief executive officer, Premila Kumar said that the government should sympathize with people who are low income earners.

She said people at the grassroots level would be affected and government should provide some relief to waiver the tariff structure which is $0.22 cents per unit.

"For the government to conclude that it will lose much needed revenue if it grants a VAT waiver is not correct."

"The government is currently collecting revenue from the set tariff structure but with the introduction of the 30 percent fuel surcharge, the government will collect additional revenue through VAT."

She said the trickle-down effect of the 30 percent surcharge from commercial businesses and industries will make consumers pay twice.