Guyana's Finance Minister, Dr Ashni Singh

Prior to the implementation of the new tax regime, the government had estimated varying effects on prices, with some rising, but the majority of prices expected to decline.

But, Finance Minister Dr Ashni Singh reported that, in monitoring the implementation process, several complaints were received that businesses were not complying with the expectations of the general public, as well as the VAT regulations. He conceded that there were hardly any reductions in the prices of some commodities, which he said was largely caused by businesses adding the 16 percent VAT rate to items that would have already been taxed.

Authorities have threatened to publish the names of persistent defaulters and to take legal action against businesses who fail to heed subsequent warnings.

On December 28, President Bharrat Jagdeo warned against unscrupulous businesses that may seek to drive up the prices of commodities unnecessarily when VAT would have been implemented.

"I am worried that some businesses out there will use this opportunity, especially with people not knowing the system to drive up prices," Jagdeo stated.