PETER PAYING FOR ALL

Feb 06, 2009 Features / Columnists, Peeping Tom

The non-approval of new sources of revenue for the Mayor and City Council of Georgetown is not a financial hindrance to that body. This much has been confirmed by the examination of the performance of the municipality last year.

The Georgetown City Council collected six hundred million dollars less than what it projected and while the overall collection rate, relative to the national average is still high (at around 70 per cent), the fact that rates are so low and still persons are not paying their rates and taxes is an indication of where the real priorities of the council and the local government ministry should lie.

There is no need for any municipal lottery, container tax or for a share of the environmental tax which the government collects. The Georgetown City Council is not collecting over 600 million dollars in taxes each year and while the municipality needs much more than that to adequately address the concerns of its constituents, it is no use granting to the council additional sources of revenue when it is not collecting sufficient from its existing base.

There is also no need at this time to hasten the revaluation of properties. All this will do is to ensure that those who are paying their taxes pay more of those taxes and subsidize further those who are refusing to pay.

It is conceded that there is a need to revalue properties so that the rates and taxes levied are realistic. But there is also a need for those who are not paying to do so since they are contributing to a massive shortfall by the municipality.

The government needs to make things easier for the municipality. They need to pass a law which would allow for the council to levy on the moveable assets of homeowners who are in arrears with their rates and taxes. As long as defaulting homeowners know that they stand to lose their television sets or motor vehicles if they do not pay up their rates and taxes, they will ensure that they pay.

At the same time, there are huge outstanding sums owed to the Council. There should be immediately established a municipal court to deal with these and the many other matters so that the properties of those owing huge sums can be lawfully seized. This is the only message that Guyanese understand.

The same thing is needed for electricity and water. Persons will continue to steal electricity and to not pay their water bills because they know that there is not much that the utilities companies can do other than take them to court which is a long drawn out, tedious and costly process.

However, if a law were passed to allow for these utility companies to levy on the moveable assets of their consumers, the water company would not have to subsidize to the tune of five billion dollars each year which incidentally is mainly borne by those who pay their taxes.

Taxpayers are thus facing the squeeze all around. You pay your taxes and you are taxed higher because subsidies have to be given to the utilities.

You pay your rates and taxes to the local government authorities and you find that you have to pay more because there is a revenue shortfall and therefore properties have to revalued so that more revenue can be obtained from like you who are paying.

In the case of electricity it is even worse. You pay high tariffs because there are huge lines losses mainly due to persons stealing electricity. You who are paying yours have to pay for those who are stealing and then when oil prices dip and you expect some relief you are reminded that the electricity corporation is being subsidized, yes you guessed right, with your tax dollars which you pay to the income tax department each month.

We have to stop this rigmarole. We have to end the excuses. We have to restore law and order because with law and order comes greater fairness. Those who pay should not be penalized because there are those who are not paying.

The seven out of every ten property owners in Georgetown who are paying their rates and taxes should not have to pay more because of the three who are not paying. If they are not paying they should be made to pay through the seizure of their moveable assets or eventually, of their property.

We cannot develop in this country if we constantly cause the market forces to be retarded. We must learn to pay for the service we receive and we must not expect someone else to pay.