The new tax measures should be frozen for two months

Dec 03, 2016 Features / Columnists, Peeping Tom

The private sector is reaping what it has sown. The private sector in Guyana has a history of nestling under the bosoms of governments. They have been taken for granted.

They have been taken for a ride. Governments have no respect for them. The government, each year, gives the private sector a few goodies to keep it happy and then leaves business to grovel at the feet of the bureaucracy for additional benefits.

The private sector has no teeth. It is toothless. It has no bite. The government feels free to do as it pleases with the propertied class in this country because they know that the private sector will roll over and take whatever the government dishes out to them.

The private sector has been stunned by the 2017 Budget. They are justifiably concerned about its impact on prices, on competitiveness of their industries and eventually on their profitability. But what can they do?

The options of the private sector are limited. They are afraid – have always been afraid – of facing down the government. This is the Christmas Season, their prime sales period, and they are not likely to want to take any action such as protesting by closing their businesses for a few days at a time as is being done by their counterparts in Venezuela.

The private sector strength is in lobbying. They are good at that. They peddle their influence in the watering holes, private cocktails and social functions. They may be attempting to do that right now.

Christmas is the time of numerous parties. The private sector however is short of time to lobby. The Budget debates will be wrapped up quicker that you can shout “VAT!” The government wants to get the Budget and its controversies out of the way as quickly as possible.

Time is not on the side of the private sector to force any revision of the Budget. Governments, in any event, are not keen to make themselves look silly by reviewing Budget proposals which were presented. There is not much chance of the government changing its mind at this stage.

The APNU+AFC has not been under any pressure at all. It is not worried about public opinion. It survived unscathed the removal of vendors from the Stabroek Square. It survived the postponement of Mashramani to May. It avoided any fallout from a poorly executed 50th anniversary celebrations. It has lost no sleep over what the opposition says are at least twenty five major scandals since the government came to power. The government is not going to be moved by any protests over its Budget. It is not going to entertain any claims for a review of the measures in the Budget.

The private sector, therefore, has to come up with a new strategy to press the government on it Budget for 2017. The private sector should consider a powerful lobby which simply asks the government to freeze all the new tax measures for two months–that is until February, so that the private sector can come up with proposals that would allow the government to meet its revenue targets.

A suspension for two months of the tax measures will allow also for a study to be undertaken of the likely impact of the tax measures. The government should consent to this freeze on the measures.

The government, in so doing, will not lose face nor will such a freeze mean a reversal of the Budget measures. It gives the private sector a chance to come up with alternatives. It also allows for an assessment of the impact of the measures.

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