Ahead of a meeting today between the government and opposition to discuss this year’s budget, the AFC says that it will once again be lobbying for citizens to get relief from the country’s high taxes.
AFC’s leader Khemraj Ramjattan on Wednesday also lamented the state of the affairs of the Tax Review Committee set up over a year ago to research, review and report on reforms of the tax system. He stated that from the “scanty and sketchy” information given to his party, the three member committee has not been meeting nor is it functioning.
President Donald Ramotar had in December of 2011 identified economist Cryil Solomon, chartered accountant Ronald Alli and Chairman of Banks DIH Limited Clifford Reis to constitute the panel to review the tax system. The move was based on a commitment he made prior to last elections, where taxation became one of the main issues raised by the opposition during the campaign period.
Opposition leaders had raised concerns that the President put together the committee without consulting them. Further, the government had in February undertaken to facilitate a request by APNU and AFC to meet and make presentations to the committee but this never happened.
Solomon had taken sick shortly after the launch of the committee and back in July of last year government had said that they were working to have a replacement. That replacement has not been identified.
“It does appear that it has hit a dead-end and, thus there will be no reform of tax levels which are so draconian and oppressive…. We feel the government does not want to ease the tax burden of Guyanese, which is the highest in the Caribbean. This oppressiveness is even doubled when account is taken of the fact that Guyana salaries and wages levels are lowest in the Caribbean,” Ramjattan told a press conference.
He said that his party holds firm to the view that with tighter enforcement of the tax laws to catch the evaders, there can be lower taxes for individuals and corporate Guyana as well as even more tax revenues.
He made reference to a study undertaken by the AFC which illustrated that when compared to three other English-speaking Caribbean countries, Guyana’s taxation system was the highest.
“We have done a comparison with Guyana, Barbados, Trinidad and Tobago and Jamaica. It is outrageously higher here. This 2013 budget must reflect measures to ease this oppression in some direct reaction of rates,” Ramjattan said.
Meanwhile, other AFC suggestions for inclusion in the 2013 budget are based on the party’s position that fundamental to Guyana’s development is the “growth of a diversified economy capable of creating significantly better employment opportunities for our younger citizens than currently exist.” The reduction of the Value-Added Tax (VAT), lowering of the Berbice River Bridge toll and reduction of vehicle duties and taxes, while advocating for increases in old age pensions and the wages and salaries of public servants are proposals the AFC will give to Dr. Singh.
On that list will also be the issue of school cleaners’ salaries and the party is lobbying for it to be upped to at least $40,000 per month. Ramjattan has told this newspaper that he has not given up on the plight of the school cleaners and vowed to also tie the issue to the proposed national minimum wage when it comes up.
“We are lobbying for them to be paid at least minimum wage. The Finance Minister and the Minister of Education [have] said they are going to do something and we are going to be behind them… those cleaners ought to get a minimum wage. Their work is tough although menial,” he had said.
