The Private Sector Commission (PSC) has endorsed the proposed $17.5 billion allocation and legislative plans for the security sector in the government’s budget blueprint and it says it is looking forward to a constructive parliamentary consideration that would yield consensus.
The PSC’s backing of the plans for the security sector comes days after main opposition APNU spokesman Carl Greenidge said the opposition, which has a one-seat majority in the National Assembly, would not be inclined to approve allocations under the Ministry of Home Affairs in the national budget while Minister Clement Rohee retains the portfolio.
Both APNU and AFC, which passed a motion of no confidence against Rohee last year, have been seeking his removal from office and withholding cooperation from him is among their moves to force him out. Recently, the parties voted down a bill brought by Rohee, in keeping with their stance.
In a statement yesterday, the PSC said it firmly supports proposed arrangements to implement the Anti-Money Laundering and Countering the Financing of Terrorism Act and appeals to the National Assembly to deal with these amendments as a matter of absolute urgency. “The PSC also fully supports the allocation of $17.5 billion for improvement to the vital security sector,” it added, while saying that it looks forward to “positive and constructive engagements” in the National Assembly that will result in “consensus on the way forward….” It also encouraged all parliamentary parties to engage it on any matter that can benefit from its expertise and intervention.
Meanwhile, the PSC described the budget as being particularly relevant given the less than favourable external climate and the need to guard against domestic downturn.
It also lauded the government for considering its submissions on taxation in the national budget and it said it believes that the proposed reductions will encourage young professionals to establish roots here.
In presenting the proposed $208.8 billion budget, Finance Minister Dr Ashni Singh announced a reduction in the personal income tax from 33.3% to 30% and an increase in the property tax threshold to $40 million for individuals.
Singh also said that first-time homeowners who are holders of mortgage loans from a commercial bank or the New Building Society of up to $30 million will be permitted to deduct the interest they pay on such mortgages from their taxable income for the purposes of personal income tax.
The proposals are seen as concessions to the PSC, which in its formal proposals to government specifically urged a cut in the personal income tax.
The PSC called the proposed tax initiatives “heartening” and suggested that it would assist young professionals to acquire property and establish roots here. “This, we believe, will encourage the retention of critical skills essential to economic development,” it added.
According to the PSC, its submissions on infrastructure were also recognised in the blueprint presented by the Finance Minister.
It noted that the proposed budget has recognised the need for a public/private partnership to develop the Georgetown harbour, the need for a new bridge across the Demerara River and a new Georgetown bypass to the East Coast to relieve the congestion of the East Bank corridor.
“Planned expenditure on the rehabilitation and maintenance of hinterland airstrips, which has long been advocated by the private sector, will provide swift and positive impact on the aviation sector.
It will result in lowered transport costs, improved opportunities for high value exports from the interior, enhanced nature tourism capabilities and mining support,” it noted.
The PSC added that it was also pleased that recognition was given to the need to market the country for high-end tourism and as a reliable supplier of goods and services.
