Donald Ramotar will deliver on a campaign promise. The government will lower Value Added Tax from its 16% to a workable percentage and will use the 2012 budget to announce it to its supporters.
The slashing of the VAT is not necessarily what the government wants, since it was one of the taxes vigorously defending by its Former leader Bharrat Jagdeo and whom VAT was implemented under.
Among the reasons the government never wanted to lower vat was the extensive revenue it brought into the coffers. in 2007 alone it raked in $24 billion, but by mid year the following year it had raked in close to $17 billion !
But the PPP administration found itself in a tough position following the last elections. It wants the money, it want to please its supporters who have been complaining about VAT and it wants to get out of this tight hole called minority.
It will play into the Opposition hands, lower VAT, its one of the few Aces in its hands and it will want to play it very well, to secure that one seat that eluded it, putting it back into the driver's seat.
The question is now how LOW is LOW?!