Minister Stanley Raghoebarsing of Finance and Planning announced that the state of Suriname has achieved its goal of collecting SRD 5.5 billion in VAT revenue. This was stated during a press conference following a government council meeting. The minister emphasized that this represents a positive development and a success in the implementation of the VAT legislation, which has been in effect since January 1, 2023.
The VAT increase on fuel, from 5 to 10 percent, was implemented on November 1, 2023. Additionally, a 5 percent VAT on utilities was introduced starting in July 2023. However, the government has faced criticism from labor unions, which see the reduction of subsidies on utilities as a significant burden on citizens. The unions have raised objections to the rising costs for the population. Discussions between the government and the unions are still ongoing to reach a resolution.
There is also some ambiguity regarding VAT requirements for certain sectors. For instance, casinos and currency exchange operators are exempt from VAT, which has caused some confusion among the public. Furthermore, the minister acknowledged that not all businesses are currently remitting the required VAT to the government, though he could not provide precise figures on how many businesses this affects.
While the VAT legislation is now operational and progress has been made, challenges remain. These include ensuring full compliance with the law and addressing the social impact of the measure, particularly on lower-income groups.
