Dear Editor,
In spite of the ongoing protests, the government is going full speed ahead with its plan to collect VAT on utilities and on private education. One can understand the position of the government to raise revenues to plug a large fiscal deficit due to over budgeting and that has been caused by a shrinking economy and the fall in revenues from sugar, rice, gold, timber, etc. The government claims that the revenues collected from the several taxes and fees could not meet projected expenditures. What extra value, if any, will the nation get in paying extra taxes in utility usage and on education it was not getting before the new taxes were conceived? And why budget to spend more than you earn? Government tells people to spend what you have, but government is spending more than what is in the coffers. Instead of taxing the people for more revenues, why hasn’t the government considered reducing spending and eliminating waste and inefficiencies to make up for the shortfall to have a balanced budget? Why couldn’t the gov’t officials roll back the 50% increase in their salaries and cut costs in personal benefits like AC vehicles, entertainment, and home attendants, etc.? When one looks at the enormous wastage and inefficiency and inertia that this and the preceding government has facilitated (or turned a blind eye to), a lot of money could be saved eliminating the need to raise or institute new taxes on the middle class and poor working people.
The problem with any government is that the more it gets, the more it spends. And generally, government tends to make do with whatever it has. There is no need for more taxes. The tax on private education and indeed all the newly implemented taxes are giving the government more money to spend and a lot is wasted.
While people agree with a tax that discourages use of alcohol or cigarettes (so called sin tax), and on utilities to discourage wastage of (or to conserve scarce) electricity and water, the infliction of tax on private education and health care is an unnecessarily punitive tax and an attack on the freedom and enjoyment of people to seek the best health care and education. It is punishing those who want the best for themselves and families.
This government needs to be reminded that people have sacrificed a great deal to save to send their children to a private school that offers superior education than public schools. And now they are burdened with the payment of increased taxes. Because of rising taxes, people will simply go to the state schools which will be so burdened as to become more rundown than they currently are and short of supplies. Everyone loses in the end. And while the current generation is being brutalized via taxation, the future generation is robbed of skills offered at private institutions.
In terms of wastage, as an example, look at the number of individuals who will be guiding the AG – are all those advisors really needed? They could cost an additional $12 million a year in salary plus related expenses that could easily take it to $20M. Can the country afford such expenses? There are also individuals in government offices that are clearly not qualified for the positions (as Ministers and Advisors) and who have many aides – if the unqualified personnel are replaced, this will obviate the need for many assistants (square pegs in round holes) and wasteful expenditures.
There is no question, reduction in the government’s wanton spending, curtailing of waste, and replacing unqualified people to do a job will reduce costs of governance and obviate the need for more taxes to plug any shortfall in revenues.
Yours faithfully,
Vishnu Bisram
