FITUG engages Finance Ministry on 2017 National Budget

Oct 09, 2016 News

– Proposes Income Tax threshold of at least $70,000 monthly
– Asks for promised VAT reduction to be reflected in budget

Minister within the Ministry of Finance, Jaipaul Sharma, on Thursday, met with representatives of the Federation of Independent Trade Unions of Guyana (FITUG) on issues related to the 2017 National Budget.

FITUG’s delegation meeting with Minister within the Ministry of Finance, Jaipaul Sharma (Second from left) on Thursday last.

FITUG Treasurer, Seepaul Narine, led the Federation’s delegation and proposed a number of measures for the Minister and Government’s consideration at the meeting.
On taxes, FITUG proposed an Income Tax threshold of at least $70,000 monthly which would be up from $50,000 currently, and the personal income tax rate is 25 per cent rather than 30 per cent.
FITUG also sought to have the promised reduction in the rate of VAT be reflected in the 2017 Budget.
This should be done, the Union said, to bring relief to families, especially those with children.
FITUG also advised that the Minister make provision for tax relief for spouses and children under age 16.
According to the Union’s umbrella organisation, Minister Sharma was “reminded” about the importance of the sugar industry as FITUG sought the “continued support” to the industry for it to overcome its setbacks at this time.
The Union body also called on the government to adopt the Sugar Commission of Inquiry’s (CoI) recommendation to have the Skeldon Co-Generation Plant returned to GuySuCo and a revised Power Purchase Agreement (PPA) to be put in place.
Additionally, FITUG proposed that the industry’s diversification be furthered through – other Co-Generation plants, the construction of a refinery to take advantage of the CARICOM market demand and, the establishment of a distillery in Berbice.
“The diversification initiatives FITUG advised could be pursued following discussions with various stakeholders, including the respective Trade Unions in the industry.
FITUG also called on the government to reverse its decision to close Wales Estate in view of the negative impact the closure will have on the economy and on the affected workers and their families, among others.”
Regarding Old Age Pensions, FITUG wants the level of Old Age Pensions to begin at 50 per cent of the Public Sector Minimum Wage. With respect to National Insurance Scheme pensions, FITUG proposed that the increases in pensions be linked to the annual Public Sector wage rise as was the practice in the past.
FITUG also suggested that allocations to Trade Unions in the 2017 National Budget be provided to those Unions which had their financial records audited by the Auditor General’s office as is required by the Trade Union Act.
The umbrella organisation also suggested that the allocations be distributed taking into account the aggregate number of members in the bargaining unit (s) of each Union.
FITUG recommended, also, that the government consider significant salary increases for all Government employees including those hired by semi-autonomous agencies, state-owned companies and public corporations.
Also, suggestions were made to have the National Minimum Wage set to 85 per cent of the prevailing Public Sector Minimum Wage. FITUG’s suggestion takes account that when the National Minimum Wage was introduced in 2013 it was about 85 per cent of the public sector minimum wage. The Federation also proposed that that the sectorial minimum wages, last adjusted in 2012, be adjusted once again.
Finally, the FITUG suggested that the Government consider compiling and publishing reports on the impact and performance of various foreign investment projects in an effort to determine whether the Guyanese people are receiving the best possible returns.
The Federation said that the Minister thanked FITUG for its suggestions/proposals and noted that they were all understood and are practical.
He assured FITUG that the proposals would be taken into consideration by the budgetary team in the process of the Budget formulation.
”FITUG hopes that unlike the previous consultations the Minister had with FITUG on his Budgets that we will see some of our proposals reflected in this Budget in the making.”
Guyana’s 2017 National Budget will be presented on December 5, 2016.

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