Tax reform report… Gov’t may lower P.A.Y.E- Pres. Granger

Tax reform report… Gov’t may lower P.A.Y.E– Pres. Granger

Jun 28, 2016 News

On January 18, last, the Tax Reform Committee submitted its report to the government. In the report, were recommendations for sweeping changes. However, there has been little word on the implementation, since.
According to President David Granger in his latest weekly televised programme, works are apace to create a level playing field in taxation and remove graft (use of political office for personal gain). In addition, the President stated that his government may bring down the rate of taxation including Pay As You Earn (PAYE).

President David Granger

“I don’t want to generalize, but the Finance Minister (Winston Jordan) is aiming at a level playing field,” he said. “The idea is that we should not have (a) form of taxation which puts the heavy burden on the poor people. That is why maybe we can bring the entire rate of taxation, particularly personal income tax, lower”
“Over the years we have attempted to create a threshold so that poor working people are exempt. So maybe, from year to year, we could vary the income tax threshold. I would not at this point in time want to deprive working people of that benefit. But at the same time we should reduce the exemptions to have a level playing field.”
TAX WAIVERS FOR COMPANIES
The President added that a level playing field will be extended for all other areas of taxation. Granger said that individuals want to import goods and that he has even been approached by agencies desirous of getting tax waivers.
“What we’ve learnt in the past is that waivers create anomalies,” he said. “And dishonest persons tend to exploit those anomalies. They apply for waivers or exemptions to which they are not entitled. And the important thing the Minister of Finance is trying to do, is remove opportunities for graft and ensure that all tax payers operate on a level playing field.”
The reform of the tax system had been a campaign promise of the coalition. At present there is the Tax Reform Committee, which had held meetings with select stakeholders before its report. Among this Committee’s findings was the fact that unjustified tax exemptions were excessively granted to companies and individuals under the previous administration.
One of the report’s most significant findings had also been that the vulnerable or poor section of society should be eased of their high tax burden, while those with greater revenue streams should be made to pay their share.

Minister of Finance, Winston Jordan

The Committee had included National Industrial and Commercial Investments Limited (NICIL) Chairman Dr. Maurice Odle, tax specialists such as Chartered Accountant Christopher Ram, Godfrey Statia and Dr. Thomas Singh.
Odle had stated, “Taxes are not fixed. They are subjected to a reduction or even an increase.” He had gone on to add, however, that the onus was on the Minister of Finance to determine the right time for implementation.
Minister Jordan had stressed previously that while Government would reform the tax system, it would be done in a systemic way, informed by evidence, and not necessarily by moral and other considerations. In view of this, he had stated that the committee represented the first step in that direction.
The January submission of the report had been listed as one reason why the meat of its recommendations could not be incorporated into the 2016 budget. However there had been several new tax measures proposed, including the reduction of excise tax on motor vehicles of a certain age and engine capacity and to increase the income tax threshold to $660,000 yearly.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News