MPs should vote their conscience and against the 14% VAT on education

Dear Editor,

According to the media there will be an attempt by the PPP/C to debate in Parliament on May 8th the rescinding of the 14% VAT on private education. This is an appeal to all the Members of Parliament in Guyana, representing all parties, to vote against the VAT on private education.

Last week I contacted a number of leaders re their views on this question.

Minister Ramjattan stated that he supports the VAT saying “the government has to raise money” as they have a significant deficit.

Marlon Williams, the General Secretary of AFC?, stated that he was completely opposed to the 14% VAT, saying, that “there should be no VAT on education…. Guyana has fought for free education for almost 50 years and we simply cannot turn our back on it now”.

The Deputy Mayor of Georgetown, Lionel Jaikarran said, “I sincerely think that the 14% VAT on private education should be rescinded.”

Roy Beepat, was clear,  “On behalf of the Giftland Group of companies we urge the Government to repeal this tax on our students, …..  this single tax can and may be the difference between being re-elected and not, as when the 15,000 petitioners go to the poll they will surely remember this.”

Christopher Ram stated, “I find the imposition on VAT on education to be disappointing, depressing and distressing … and most of all disappointed at President Granger who before this fiasco, could properly lay claim to be Guyana’s first Education President.”

Peter Bouchard, shared, there is a danger that “ …. our future so-called ”good life” should prove to be empty electioneering words, words which will never again be believed when it comes time to vote”.

There were about 20 others that I invited to comment, including a number of Cabinet Ministers. It could be that the contact information for them was incorrect or they were simply too busy, but there was no response. Interestingly, the only one to respond was the President.

In preparing this letter I re-read all 1,500 comments that have been published on our petition (see: www.ipetitions.com/petition/education-vat-free). On February 24th the petition, with more than 14,000 signatures, was delivered to the President & Ministers Jordan and Roopnaraine.  There was no response.

Some of the comments on the ipetition include;

Keith Gordon, Guyana, “.. find another way to raise revenue … please speak out Minister of Education.”

Charlotte Francis, Guyana, “..there must be at least one person with a heart in this decision.”

Yashoda, Guyana, “don’t raise an ignorant nations please.”

Christopher Williams, Guyana, “education is the only way out of poverty.”

Keshawn McAllister, Linden, “how do you know that I am not paying a loan to afford private education?”

Oswin Lynch, Guyana, “where is the study which validates this measure?”

Maria, Guyana, “this is discriminating against private school children.”

Renee Chester, Guyana, “this is not what I voted for.”

Annika Narine, Guyana, “can I ask the persons responsible for this to highlight the benefits of this to us?”

Gordon Britton, Grand Bend, Canada, education is a human right not a good or service to be taxed like a luxury car.”

Merle Huntley, Cape Town, South Africa, “the benefit to the state of an educated population is way more valuable than any amount of tax revenue.”

Janet Joseph, USA, “President Burnham promised free education from the womb to the tomb.”

Alicia Isaacs, Guyana, “for better future leaders let’s say VAT free education.”

Hemchand Balli, Guyana, “the government should show that they care for the people.”

Azad Khan, Guyana, “..terrible …retrograde move.”

Vaidehi Narine, Guyana, “the future depends on us, don’t try to make it even harder.”

Vera Zhigalova, Czech Republic, “education is not a thing by which we should build a country’s finances.”

Rajeev, Guyana, “so much for free education.”

Anil Balli, Guyana, “show that you really care for the people of Guyana.”

Somava Stout, USA, “ a tax on education risks the future.”

Kevin McKenzie, Guyana, “people expect the government to be compassionate towards its people.”

Andrew Budhram, Arima Trinidad, “draconian at best.”

Rondecia Wallace, Guyana, “this move by government is heartless.”

Imran Bacchus, Guyana, “adding VAT just makes the future of many Guyanese more difficult.”

Amanda B, Guyana, “Yes I have a choice … 2020.”

Jason Joseph, Guyana, “ it demonstrates backward thinking.”

Peter Bouchard, Guyana, “this is one of the most backward steps ever taken by any government in the world.”

Jaime Singh, Guyana, “I am presently studying at a private school …VAT means I may have to drop out.”

Eudo Singh, Guyana, “by destroying the buds you will see no flowers.”

Yonette Gordon, Guyana, “APNU/AFC said education should be free for all.”

Members of Parliament are our elected representatives and we earnestly hope they will vote based on their conscience and not simply follow the party line. Before you vote we urge you to reflect on the following questions;

#1:  How does a coalition government, with a majority of one, manage to ignore a petition signed by more than 14,000 persons?

#2: ?How can there be a “huge budget deficit”  and yet none of the leaders suggest other possible sources of revenue?

#3:  Others have said, ‘so many of the private schools are not paying their taxes’.

Why is it so difficult for a government, with all its powers, to resolve this  flagrant injustice?

#4: Some Ministers have suggested, that certain schools have been granted tax free status as a “religious school” why is the same concession not given to schools run by persons of other Faiths?

#5: Senior Cabinet Ministers have stated simply, “they have a choice.”  Has the public education system, which is presently the target of a Commission of Inquiry, the capacity to re-integrate the thousands of persons who may be forced to leave public schools?

#6: Some claim there is no need for private education as the results from public schools are more than adequate. Have any of those statements been supported by research?  The overwhelming body of evidence from national primary examination results is that private schools are significantly over represented in terms of “success”.  Another commentator talks about CSEC success at the top public schools – did he forget the role of the lessons juggernaut here? Moreover, are lessons teachers asked for the 14% or even for any tax?

#7: Within a few weeks of the 14% imposition more than 10% of the 800 ABE students at Nations have dropped out and joined the ever-swelling ranks of the unemployed and unemployable in Guyana. The public system has no equivalent course to the ABE programme offered at a small handful of private centres.  Furthermore, if the thousands of students at the eight  Off-Shore Medical schools cannot find the additional 14% where will they go? The Aeronautical School attracts students from Guyana and the wider Caribbean – the government makes no attempt to provide them with state sponsored training.  What will happen to the Jamaican law school, will the Jamaican Consortium simply look for a more conducive country to do business?

#8: Do we care about the international image that has been created by this tax? We cannot find a single example anywhere in the world that has imposed a similar tax on private education.

#9: Is it true that “private schools are making significant sums of money?” Yes, some are making “significant” money.  Is that wrong?  A more pertinent question is “do those schools  pay their fair share of tax?” – the ones that are tax compliant pay millions of dollars in Income Tax and Corporation Tax.    We need to be careful that we are not developing an anti-private enterprise culture in Guyana – with a huge oil flow around the corner that will not send the right message to the international developers who will be essential to develop those prized riches and who are, no doubt, watching this VAT saga.

#10: Why don’t the private schools simply pay the 14% themselves?  Yes, that can be done – once all the other businesses in Guyana do the same then the private schools can follow suit.

#11: Minister Ramjattan supported his Yes vote by saying simply that there is a significant deficit in the budget.  If this happened before elections, rather than after, would they not have been obliged to sincerely listen to and respect the views of the people?

#12: In conclusion, where does that leave us?  By abandoning any decision for almost a year the government has succeeded in exhausting and frustrating thousands of persons.   A significant number of the youth of this country, already disenchanted by politics are now totally disillusioned. They look for their leaders and can’t seem to find them under any political banner.

#13: Are the dollars taken worth the pain, suffering and disenchantment of thousands and thousands of persons?

We surely deserve answers to each of the above questions from our political leaders. Is that too much to ask for?  Should the ‘leaders’ of the country be accountable to the views of the people?

Yours faithfully,

Dr Brian O’Toole

Director

School of the Nations