Dear Editor,
Over the years I have read many letters in the Guyanese newspapers in which Mr Sattaur, the Commissioner General (CG) of the Guyana Revenue Authority, has made reference to government policies, either praising or defending them. The latest appeared in the December 3 edition of the Stabroek News in a letter headed ‘The income tax threshold takes into account allowances granted under the previous system.’
I find it very disturbing that this practice has continued unabated. Mr Sattaur has been the Head of the GRA under three different Ministers. The CG mentioned in his letter that the mandate of the GRA was to administer the various tax statutes on behalf of the Government of Guyana.
It is the Minister of Finance who should be defending and praising government policies, not the CG. Were all these Ministers not aware of their responsibilities? This was the reason the implementation of the VAT was a fiasco. The Millennium Development Corporation was assisting with strengthening the tax policy of the Ministry of Finance. One would hope that in the future, the CG would refrain from commenting on government policies and stick to his mandate; he should not be encouraged to behave like a politician. It does not promote good governance and is not professional.
Mr Sattaur stated that the basic expenses of a family were considered and catered for when the fixed income tax threshold replaced the allowances system. My understanding is that presently there is a fixed threshold amount for all individual taxpayers regardless of the number of dependants. Therefore, a family with one income-earner and no children with an annual income of $1,000,000 and a family with four children and the same income will pay the same tax. I think this was the point the Region 4 Councillor was making.
The CG mentioned that the government commitment to alleviate economic hardship has resulted in the loss of billions of dollars in revenue. The CG should also know that billions of dollars are being lost each year through tax evasion/avoidance and lack of adequate enforcement. This is where his energy and effort should be focused. This is where he can have more impact. The flowery rhetoric should be left for the politicians.
Yours faithfully,
D. Deonarine
