Dear Editor,
The recent actions by the Government of Guyana in and out of Parliament definitely endorses my long stated contention that essentially we, the Guyanese people, are in the clutches of a communist regime. In Parliament we see clear indications of communist manipulation when such bills as the casino issue, the medical/health issue and the budget itself are shoved down the people’s throat and that includes the VAT and its aftermath. Outside of Parliament, the true nature of this Government can be seen in their treatment of Stabroek News (by stopping all ads) and just as importantly, the decision to openly attack business enterprises in Berbice and then undermine their businesses by openly selling food items from Government trucks; not to mention the confusion inherent in the implementation of VAT.
With the implementation of VAT without tax reform, the Guyanese consumer is already faced with higher prices and this budget will result in further devaluation of our dollar which will lead ultimately to even higher prices to the consumer. Tax reform was essential to a successful VAT but after fifteen years, the communists in Freedom House led by the Gang of 8, are no reformers as we all can see if we look at any other aspect of life in Guyana. Where is the reform in education? Where is the reform in health? Where is the reform in labour relations or in the constitution or the legal system? The answer is that reform is not on Freedom House’s agenda since President Cheddi died almost ten years ago and I can give you one small example of what I’m talking about.When President Cheddi was alive tax amnesties were allowed in 1993 by his Finance Minister, Mr.Asgar Ally and results were superb as figures proved when collections at customs went from 9 billion(GYD) to 30 something billion(GYD) and this tax amnesty was the beginning of a tax reform system President Cheddi would have cultivated.
Is there any indication in our new budget for tax amnesty and hence tax reform, in order to widen the tax net and bring many people in who are presently not paying any taxes? No! All this government is concerned about is “casting stones” and we all know what the Holy Books have to say about that. Isn’t tax reform predicated on lowering the high 33% on the working poor; on lowering the extremely high corporate(35-45%) taxes so as to free up the businessman(woman)’s money for further investment by expanding to create more jobs? Yes!-like in Trinidad where corporate taxes are a lot less. Isn’t tax reform predicated on attracting new big investments into our country and bringing new capital(money) into play to stimulate the local economy instead setting up a draconian VAT and a hazy budget which will lead to a flight of capital and more suffering by the regular person? Yes!-check Singapore and see that because of serious foreign investments and a pro-business attitude by their government the country is continually prospering. Isn’t tax reform predicated on a VAT which is reasonable and sound and which coincides with the Government lowering the CET (Common External Tariff) on many items which they refuse to but which would actually lower prices on many items.? Yes!-Trinidad and Barbados, especially Jamaica, lowered the CET on many items when they brought in the VAT which relieved the pressures on the consumer. Isn’t tax reform predicated on the freedom of an individual who works hard and develops a business and is dedicated to seeing Guyana progress while playing a part and enjoying the fruits of his labour while seeing his tax money well spent instead of the communist way of tax, tax, tax and spend, spend, spend? Yes! We, the citizens of Guyana demand an accounting-explain to me how we can spend $20million(US) on a stadium and we have crummy water and crummy electricity and then the government tells us they are promoting Guyana tourism abroad and only spending$300,000-500,000 (US) to advertise Guyana-what is really going on?
That is why I have proposed over and over that what we need is not a VAT tax but a Flat tax which Ireland, Estonia,Suriname and other countries have moved to and which have galvanized their economies to create more jobs, stamp out corruption and attract capital to generate a private sector dominance in the economy. The beauty of a flat tax is its simplicity and it’s an exciting alternative to the vileness of a progressive tax which penalizes consumption in the marketplace. Guyana ,with its small population, relative open and non-secure borders, corrupt institutions and a dumping ground for manufacturers abroad needs a flat tax to create a marketplace where the consumer becomes number one. The VAT and the budget and the high CET and the huge bureaucracy(25 ministers) and the endemic corruption and the largely undemocratic constitution are all elements in the big equation which results in a Guyana run by lackeys of a decadent socialism/communism dedicated to stymie the growth of the private sector while delivering unto us ,the Guyanese people, the same old government domination of our economy and resources and thus our very future well being.
But economic matters are secondary to prevalent political concerns and in a country such as ours, the essential betterment of our society demands urgent political reform and that is why Mr Jagdeo should make space for Mr Corbin and the PNC in his government in order to promote national unity and a sense of togetherness. This would create the correct political directive to all economic activity, from the smallest local investor to the foreign companies. Unfortunately, the communists who inhabit Freedom House today have forgotten the years of good governance under President Cheddi who was always a reformer, from the start of his political career to the last day he lived; he often told me of his dreams of a coalition to unite the country and pursue a local and global agenda where Guyana and all Guyanese could attain a good standard of life. For example, he always believed that we should go back to the constituency system for electing representatives to Parliament and he would have brought reform to change the corrupting “party list” system. Since his death, there has been no reform in that direction and that is why Mr. Sam Hinds sits in Parliament because in a constituency system Mr.Hinds could never win a seat out of where he’s from(Linden). Where is reform in the health and education sectors ,not to mention the economic viability, when we train teachers and nurses here and then they leave for better “pastures” because we have no reforming process in place to keep them? Where is reform when tolerance, an important aspect of the reforming process is abrogated as is the case of the cancellation of government ads to Stabroek News just because government officials can’t handle journalistic independence?
Yes sir! We need reform in all aspects of our society to make us truly one nation- always under God.
Yours faithfully,
Cheddi(Joey) Jagan (Jr.)
