The Vendors Association is asserting that the Castries Constituencies Council (CCC) is in breach of regulations relating to the collection of taxes.
Association President, Peter ‘Ras Ipa’ Isaac, told the Times that the matter has been verified with the Inland Revenue Department (IRD).
“They are saying to us what the CCC has done so far is a beach of the rules of persons who are responsible for collecting taxes, especially VAT,” Isaac said.
“Council has a right to collect VAT, but they are collecting it and they have not prepared the receipt properly to reflect the breakdown,” he explained.
Isaac told the Times that instead, the CCC was putting arrears on the receipts issued to vendors without indicating the reason for the arrears.
He said that invoices did not have any signatures from CCC officials.
“If vendors have not paid tax for four years, it means that they have to sensitize vendors on the whole issue of VAT before they try to impose it on them,” the Vendors Association President told the Times.
He disclosed that the IRD indicated that it would be writing the CCC on the matter of the ‘breach’ of the rules of tax collection.
Isaac said most vendors have not been paying the 15 percent VAT which the CCC has applied retroactively to December, 2016.
He recalled that the government has indicated that from next month, the rate of VAT will be reduced from 15 to 12.5 percent.