AFC says open to having talks with govt on 2013 budget – tax reduction high on agenda

The Alliance For Change (AFC) will be meeting with the People’s Progressive Party/Civic (PPP/C) administration to commence talks on the 2013 national budget slated to be presented in the National Assembly within weeks by Finance Minister Dr Ashni Singh.

The two sides will meet on Friday following a request by the government on Tuesday. AFC executive member Cathy Hughes assured the press that the party would be represented during the crucial meeting, noting that key issues raised in the past will be on top of the agenda. Optimistically she said it is the hope of the AFC that a reduction in the Value Added Tax (VAT) and crossing fees for the Berbice Bridge would be included.
AFC leader Khemraj Ramjattan said the “tax review” will also be included in the discussion. During the press conference at the Sidewalk Café on Wednesday, the AFC leader used the opportunity to express the party’s frustration over the lack of information available on the progress of the Tax Review Committee which was established to research, review and report on reforms of the tax system. The members of the committee are: Dr Cyril Solomon, businessman Ronald Ali and Banks DIH Managing Director Clifford Reis. “From the scanty and sketchy information given to the AFC, the team of Ali, Reis and Solomon has not been meeting nor has it been functioning. It does appear that has hit a dead-end; and thus there will be no reform of tax levels which are so draconian and oppressive.”
He further opined that the government might be dragging its foot on the issue, lamenting that Guyana has the highest VAT rate in the Caribbean.
“The AFC is of the opinion that with tighter enforcement of the tax laws to catch the avoiders and evaders, lower rates for individual, corporate and value-added can realise even more revenues,” he declared.
Though the taxes are reportedly high, Ramjattan said Guyanese are not protesting the issue because of fear. “There is a tremendous amount of fear, and also a tremendous amount of deliberate volunteering of not wanting to confront issues by largely businessmen, because they feel they are going to lose whatever benefits; they keep their mouths shut.”
He said although the issue is not unfamiliar to the Guyanese populace, it is important for them to know that the issue of high taxation remains on the front burner. He too expressed hope that after many pleas, serious attention would be given to the matter. “Hopefully, hopefully, the government of the day is going to see the necessity to do some reduction of these high rates and taxes, at the individual, corporate, and at the value added levels.”