[www.inewsguyana.com] – The Private Sector Commission (PSC) is pushing for the APNU+AFC government to slash a slew of taxes as the government pushes ahead with consultations on the 2015 fiscal budget which is expected to be presented shortly.
This was confirmed in a PSC release after the Executive met with Minister of Finance Winston Jordan to discuss private sector proposals for the upcoming budget.
According to the release, the discussion centred on a number of issues of concern to the private sector as these relate to infrastructure, energy, the environment and taxation, the sugar and rice industries, the economy and information and communication technology.
“The Private Sector Commission recommended reform of the taxation system and the Minister informed the Commission that the 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 the country.
The Commission urged the Minister to consider a reduction in the rate of corporate taxation since this could increase government revenues.The Minister also shared with the Commission his Government’s intention to examine the Value Added Tax rate with a view to its amendment. He also shared the Commission’s view that property taxes need to be revisited,” the release stated.
It was noted too that in the area of infrastructure, discussion centred on dredging of the Demerara Harbour and the development of road links including the Timehri/Georgetown/East Demerara link, the Linden/Lethem road and the East Bank Essequibo/Bartica Road.
Jordan suggested that a team be put together through the Ministry of Business to look at a Public-Private Partnership for the dredging of the Harbour.
The urgent need for liberalisation of the telecommunications sector was highlighted.
The solid waste problem, including problems with the Haags Bosch landfill project, were also ventilated and the PSC recommended the consideration of waste to energy systems since Guyana now generates enough solid waste to make these feasible.
The Commission also recommended the establishment of a solid waste management authority.
Does the PSC really believe that decreasing corporate taxes, lowing value added taxes and lower property taxes will result in increase government revenue? Well I don’t know which economic theory they are referring to but this definitely goes against all money and banking policies. For the ordinary people who are not economists you cannot get more money with less coming in. Less meaning that the government will be getting less money from lowering all of the proposed tax cuts and at the same time must have sufficient money to provide all of the projects and essential services. If the government follows the recommendation of the PSC it will have a budget deficit and will be a recipe for sending the economy into downward spiral which directly will increase the inflation rate. So Mr. Jordan let common sense, good decision making and basic budgetary and economic theory prevail and pay no attention to the ill advice being given to you by the PSC.
Hello,
I would like this respond sent to the department which discuss Budget and tax reductions in todays edition of Inews.
” With a population under one million, high unemployment rate, slow economy, high in crimes, and weak industries, it will be difficult to lower taxes or even think of raising taxes to a questionable percentage.
What is lacking is the need to go after the businesses and individuals who owes the government taxes and tax arrears as far as five years back. This is where the auditors need to focus on.
Many side businesses, bottom house bars, road side vendors, traders and so on need to pay their shares.
It is time for Lynden to contribute to the economy as well. The money tree is drying out.
Also people who borrow to invest should have some exemptions and considerations. Those who invest and suffers lost up to five years should be reimbursed some percentage of their investments. This will encourage private sectors to expand and other citizens to start up a small business of their own.
This will encourage youths to take small risks in businesses and venture their ideas.
Everyone MUST complete their tax returns annually. These are areas for consideration.
Why invest when you need time to ‘pick up’ and there is no encouragement; not even on your own capital there is return or tax exemptions or even a tax break for the first five year until you begin to see a profit.”
Basically this is the general idea to manage taxes, tax returns and encourage development in the private sector.”
Thank you.
We need a Tax Reduction Mr Granger talk about that lets see it happen.
Can anyone reading this educate me when was the Duke Study Commissioned and by which local entity and how long ago was this recommendation made please?