Dear Editor,
The recent statement in the press by the current ambassador of Guyana to the USA was very disturbing and not helpful in enhancing the image of the current administration. Has the ambassador switched sides and joined the opposition? His statement does strengthen public opinion of the opposition’s position on this matter.
All Guyanese are very aware that the taxes not being paid by ExxonMobil are depletive of the potential earnings from the sector. It is clearly not a matter of one or the other as a source of income. Both the royalty payment and the taxes should be added to the NRF. Suriname and other astute countries made sure of this. If the Civic is supporting the PPP then their party should put forward a comprehensive plan to secure an increase in the earnings from the sector. The recent comments by the leader of the Civic has only added to the anger that already exists in the population concerning the current structure of the agreement with ExxonMobil. If our citizens and their businesses are required to pay taxes then all foreign investors and foreign companies should be required to do the same.
The new wells should have an amended clause in their respective PSAs that requires the payment of taxes as part of the EPA’s approval process. The taxes obtained can be used to help supplement the poor insurance coverage being provided by the parent company in the case of an oil spill. ExxonMobil should also view the opportunity to pay taxes as a means to mitigate the risks associated with drilling beyond the recommended rate. Hopefully, the political partners of the government will eventually propose a solution that is in line with the sentiments of the Guyanese people.
Sincerely,
Jamil Changlee
Chairman
The Cooperative Republicans of
Guyana