Consultations on Budget 2015…Tax will be removed from certain food items - Finance Minister

Consultations on Budget 2015…Tax will be removed from certain food items – Finance Minister

Jul 26, 2015 News

By Kiana Wilburg
After relating to this newspaper some days ago that consultation with the opposition, the People’s Progressive Party (PPP), is not likely to occur for the 2015 budget, the Finance Minister, Winston Jordan was able to extend an invitation for

Finance Minister, Winston Jordan

discussions and it was accepted.
Jordan however told Kaieteur News yesterday that the exchange was not as fruitful as it could have or was supposed to be.
He said that the meeting at the end of the day was an opportunity to break the ice between government and the opposition in a formal manner.
He said that he even suggested that both parties can have periodic consultations.
On Friday, Jordan and his team met with representatives of the PPP at the Ministry of Finance for what was intended to be an exchange of views on the 2015 Budget.
PPP General Secretary, Clement Rohee, accompanied by former Ministers Robeson Benn, Pauline Sukhai, and Juan Edghill and member of the Executive Committee, Dharamkumar Seeraj represented the Party at the meeting.
The PPP said it decided to accept the invitation having regard to “the unfortunate state of affairs obtaining in the country since the APNU+AFC assumed office.” This sentiment was communicated to Jordan by Rohee.
In this respect, the PPP said that the Finance Minister was told about the everyday violation of the rules and regulations pertaining to public expenditure management.
Rohee advised Jordan of the Party’s “rejection of the pervasive ethnic cleansing and the political and social discrimination as well as the continuing arbitrary dismissal of persons once employed by the PPP/C administration.”
“The Minister’s attention was drawn to the government scaring away of foreign and local investors and the persistent haranguing of local private sector enterprises of being involved in money laundering, corruption and other and illegal activities. These positions adopted by government, the Minister was advised, will not in any way help to restore confidence and optimism in the economy.”
Jordan reportedly made it known that he was preparing a three-month budget which is likely to be laid in the National Assembly in mid August 2015.
The PPP said that it left with the understanding that the budget will project a three percent economic growth and will concentrate on boosting aggregate demand. The PPP delegation was also advised that Cabinet had its first look at the budget last Tuesday.
The Finance Minister, the PPP said, also advised that there will not be a 20 percent increase in salaries for public servants. The APNU+AFC’s action programme for the first 100 days in office does not state that such a figure was promised. It only promised “significant salary increases for government workers.”
The opposition said in its statement that as they understand it, the 2015 budget will not feature a reduction of the Value Added Tax. It said, too that Jordan was informed that the Party will submit its recommendations to the Ministry at the earliest possible time.
It informed the media yesterday that the said recommendations were forwarded to the Minister on Friday.
Yesterday, Jordan said that he addressed some of the contentions made by the party.
With regard to the PPP question on the 100 day plan, Jordan said that he told the opposition that the plans are in the process of being implemented, some completely while others are partial at this time.
He said that it was also explained to the delegation that some things such as the establishment of the Public Procurement Commission require cooperation from the PPP.
As for the issue of tax reductions, the Finance Minister said that he told the PPP that this will not be highlighted in the budget. A team is conducting a comprehensive study and review of the tax system to see what is feasible for the nation.
“We are doing a tax study and that will tell us by how much we can afford to reduce it and it will look at all the taxes taking into account the needs of a modern economy.
“The willy-nilly tampering of the taxes will not send a good signal or message to the investors. They are not trusting of an unstable tax system. They don’t like that environment at all so we need to have a tax system in place where it acts as an incentive for local and regional investors.
“In the meantime, we will be removing taxes on certain food items. This is going to be featured in the 2015 budget,” the Finance Minister said.