Minister of Finance Winston Jordan met on Wednesday with the executive of the Private Sector Commission (PSC) on the upcoming national budget and committed to consider a proposal for a stimulus to boost the economy.
According to a PSC statement, discussions at the meeting centred on, among other things, infrastructure, energy, the environment and taxation, the sugar and rice industries, the economy and information and communication technology. On the latter issue, the PSC spoke of the urgent need for the liberalisation of the sector.
During talks on the dredging of the Demerara Harbour, the minister suggested that the PSC assemble a team through the Ministry of Business to look at a public-private partnership to fund the dredging. The meeting also discussed the development of road linkages, such as the Timehri/ Georgetown/ East Dem-erara link; the Linden/ Lethem road; and the East Bank Essequibo/Bartica road.
The private sector group also highlighted the need for renewable energy, especially hydroelectric and solar power projects. Jordan informed the commission that government does not intend to proceed with the Amaila Falls project in its current form and advised them to consider other renewable energy sources.
The meeting also discussed the country’s solid waste problem, including the challenges with the Haags Bosch facility and the commission recommended that government considers using waste to produce energy as Guyana now generates enough solid waste to make this feasible. The PSC also suggested that a solid waste management authority be established.
On the issue of taxation, the PSC recommended that the system be reformed and asked the minister to consider reducing the rate of corporate taxation as it could increase government revenues. In response, Jordan advised the group that government is about to commission a tax study which would be utilised, along with a study conducted by Duke University, to develop a comprehensive taxation system for Guyana. He also informed them that government intends to examine the value-added tax rate with a view to its amendment and it is of the opinion that property taxes need to be revisited.
The minister also pledged to consider a stimulus to boost the economy since business has slowed down, and to ensuring stability of the currency through the appropriate monetary policies. He further assured the PSC that its proposals would be given consideration for either the 2015 or 2016 budget as government is focused on implementing its 100-day plan with an attendant focus on increasing pensions and salaries.
