PARAMARIBO, Suriname, CMC – Several trade unions Tuesday announced plans to stage protest action if the government goes ahead and increases the value-added tax (VAT) by 100 percent from November 1 this year.
The government intends to increase the VAT on fuel from five to 10 percent, and the unions say that will lead to an increase in the cost of living and significantly reduce the purchasing power of workers.
“The joint unions will not accept that the increases are being implemented stealthily and are now preparing to take action if there are indications that this will happen,” said the trade union C-47, the Confederation for Civil Servants’ Organizations (COL), the security unions and the association of health unions in a letter sent to President Chandrikapersad Santokhi.
In the October 26 letter, the unions gave Santokhi until Tuesday to indicate whether or not his administration would go ahead with the increase in the VAT from Wednesday.
The unions say every effort should be made to make the necessary legislative changes and that the ‘VAT Act Evaluation’ committee has sent a draft amendment proposal to Parliament and the government that could form the basis for the discussions on reducing the tax.
The unions say that the position had been developed in collaboration with them and that they “fully support” the initiative.
Santokhi and Finance and Planning Minister Stanley Raghoebarsing have yet to respond to the initiative.
“In the meantime, it’s short notice. Despite this, the joint trade unions have no insight into the stage at which the agreed legislative change has reached,” the unions said.
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