‘Worried’ PSC, unions want urgent meeting with Nat’l Assembly on budget

Dec 10, 2016 News

Businesses and two major union bodies are urging leaders of the National Assembly to meet and discuss a number of critical issues pertaining to the 2017 national budget.

Requesting an urgent meeting with the National Assembly: (from left) Lincoln Lewis, Edward Boyer and Kenneth Joseph.

Presented last week by Finance Minister, Winston Jordan, the budget has been a major talking point because of a number of tax hikes, fees increase and measures.
Yesterday, the Private Sector Commission (PSC), the Guyana Trade Union Congress (GTUC) and the Federation of Independent Trade Unions in Guyana (FITUG) released a letter to Speaker of the House, Dr. Barton Scotland; Leader of Government Business, Moses Nagamootoo and Bharrat Jagdeo, Leader of the Opposition on the budget.
The letter was signed by Edward Boyer on behalf of PSC; Lincoln Lewis of GTUC and Kenneth Joseph from FITUG.
The groups said that on behalf of their constituents, they want to seek urgent engagement on the subject.
“Having read the budget, presented to the National Assembly on Monday 28th November, there are areas of interest and concern to us. Consequently we seek audience together with you with the aim of having the stated issues objectively addressed and amicably resolved.”
Among the issues that the unions and PSC want addressed are the new tax regimes under the Value-Added Tax (VAT) and Pay As You Earn (PAYE).
In the letter, the bodies noted that it is not lost on them that APNU+AFC in its 2015 Manifesto committed to the reduction of taxes – from 16% to 14 % – which is laudable.
However, they stressed “… of concern is its potential to negatively impact-direct and indirect- business, consumers, workers and citizens”.
Also raised were new taxes – healthcare, education, electricity, water and internet.
These are “areas we consider vital to the development and well-being of Guyana and Guyanese. Though it is not being disputed the need to source funding for these, the concern is that the methodology being applied in achieving same may have adverse effects,” the letter warned.
They are also concerned about amendments to the Income Tax Act to facilitate garnishments by Guyana Revenue Authority (GRA).
“We urge a stay on this Act pending further consultation and deliberation. The strong view is held this is unnecessary based on existing powers and rights of collection. Correspondingly, it is the view that it is important to have the contention resolved.”
Also of concern is the removal of subsidies from the pension population.
“It is positively recognized that government has within its 18-months stewardship increased pension by 45 percent. With the removal of subsidized water and electricity from this vulnerable group, it is of concern their quality of life will face more challenges with new taxes added to other essential items and services.”
With regards to the environmental and mining taxes, the bodies said that in light of environmental compliance required by local manufactures, tax measures such as the environmental tax should be carefully considered.
“The tax measures on the mining industry would reverse the benefits from the several concessions and should be removed since the concern is that the additional taxes would be a burden and disincentive to participating and upholding the standards required in the sector. It is our collective view that should we objectively engage the aforementioned issues, such would bode well for making the budget an inclusionary document that society can with in achieving the objective of “Building a Diversified, Green Economy: Delivering the Good Life to All Guyanese,” the letter urged.
The bodies want the meeting to be held within the next few days, notably before the National Assembly goes into committees next week to fine-tune the $250B budget.