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The localisation of taxes

Jan 28, 2009 Peeping Tom

INTRODUCTION:

In my Sunday column, I presented a case study on Bartica.  Most villages and towns including Georgetown are held hostage by the administration.  For example, Bartica gets only $3M to manage the community.  We all know that the government withholds the subvention from the City of Georgetown, for political damage to the Mayor.
One of the local blogs (LivingGuyana) listed the concept as “the localisation of taxes”. We must take away control from the central government.  They hold funding as a hostage to those communities that are not under their full control.  This is a dictatorial method.
I attended the City Hall launching of their technology strategy.  The plans were impressive and will greatly improve the services to the citizens.  One of the major issues is the funding.  The Mayor advocated that the central government help the city by providing some of the VAT money for the project that they collect from the residents.   What was then shocking was the Prime Minister said that the government will only give the city money if the Mayor leads the charge to raise the VAT.
Our tax system is already the noose around our necks and the Prime Minister has the audacity to call for an increase in taxes.   One wonders what the government is doing with all our money.
COMMUNITY MANAGEMENT
The goal in socio-economics is to create jobs at the village levels.   Without bringing jobs at the local village level, one will need to travel to another area in order to gain meaningful employment.   Those that live on the West Coast of Demerara face that everyday.  They must travel hours to Georgetown in order to make a $40,000 salary.  After they pay income taxes, NIS, transportation and the rest on living expenses that includes VAT, they might as well stay home and not work.
The example that I use the most is that if the villages were given back their money they paid in taxes, and told to maintain the drainage system by hiring their own, I strongly believe we will get better results.
Micro loans to farmers in the community to plant key products are much better than passing out one plant and a few seeds.  Providing micro loans to create Sewing Cooperatives where each community retains the jobs to sew school uniforms will ensure that parents do not have to travel to another community, and then pay to get the uniforms.
CONSTITUTIONAL REFORM
It is very important that we have constitutional reform.   When the PPP was in opposition, they opposed the Burnham constitution as too powerful.  They came into power in 1992 and to this date have refused to implement the reforms that were agreed to by the commission.
If we were to elect our representatives in each community, then we will be able to make them accountable to the citizens.  When they go into parliament, they then will have to fight to get the local projects funded.  Wow, wouldn’t that be a great system.
Why then does the PPP administration refuse to make the changes necessary that will improve the way we manage our communities?
CONCLUSION:
We are already one of the highest taxed countries in the world.  For the administration to want to tax us more is just plain sad.   We already pay 33 1/3% income tax, 5.6% NIS, 16% VAT, fuel tax and rates/taxes, yet the government wants to increase what we pay into the treasury.
With all this money, one would think that the government will want to make each community better.  By improving the lives of all citizens, they then will do their part to make our nation better.
Imagine your roads in Industry, Mon Repos and Bartica paved because the taxes you paid were sent back to our communities.  Is it not the best way to run the government?
Let us get on with running the country .Until next time “Roop”

Send comments to [email protected] or www.visionguyana.com

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