14% VAT on tuition motion cannot be discussed

May 07, 2017 News

The motion for a reversal of Value Added Tax (VAT) on Education by the Opposition People’s

Minister of Education Dr. Rupert Roopnaraine

Progressive Party/ Civic (PPP/C) cannot be discussed at another Parliament session says Speaker of the National Assembly, Dr. Barton Scotland.
A letter was sent to former Education Minister and Opposition Member of Parliament, Priya Manickchand, from the Parliament indicating that the motion will not be proceeded with at tomorrow’s sitting.
At a press conference on Thursday, Opposition Chief Whip Gail Teixeira noted that the motion was significantly changed by the Speaker. Several clauses in the motion were amended she said.
The letter states, “If allowed, the motion would be in contravention to Standing Order No. 26(e). Standing Order No. 26 (e) states that for a motion to be admissible, ‘It shall not revive discussion of a matter which has been discussed in the same session.’
“The revocation of Order No. 18 of 2016 and the reinstatement of schedules I and II which existed prior to Order No. 18 were discussed by the National Assembly as its sitting on 30th January, 2017, during the consideration of Ms. Gail Teixeira’s motion which was published on Notice Paper No. 82 of 2017 dated 15th January, 2017. That motion was defeated.”
VAT on private tuition was introduced last budget.
In a Press Release dated May 6 2017, the PPP/C stated “This development exposes the Speaker as complicit in the executive’s unfolding objective to seize control over the legislature.
“We call on our people to be ever vigilant in exposing and speaking out against the whittling away of parliamentary democracy, our human rights and the constitution.”

Former Education Minister and Opposition Member of Parliament Priya Manickchand

On January 30, 2017, the 60th sitting of the eleventh Parliament, the PPP/C moved a motion to restore items that were previously zero-rated under the Value Added Tax (VAT).
Minister of Finance Winston Jordan argued that the changes were necessary to trunk the continuing decline of tax revenue yielded by the tax.
Chief Whip Gail Teixeira argued that the changes are likely to have an “unfavorable effect on the people of Guyana and the economy.”
She called for the National Assembly to have the government repeal the order and to restore the previous plan.
Both students and parents of private institutions have since been lobbying against this VAT imposition. There has been a petition signed by 14,000 people, letters published, and silent protests.
Minister of Education Dr. Rupert Roopnaraine has said that the government is open to suggestions on alternatives to the 14 percent Value Added Tax (VAT) on private tuition. The Ministry has also been conducting meetings for citizens to air their views.
During the meetings calls were made for the Ministry of Education and the Guyana Revenue Authority (GRA) to go after schools which are delinquent in paying their taxes. They were also asked to ensure that only authorized schools were permitted to operate.
The Alliance For Change (AFC), one arm of the coalition government says the 14 percent VAT is necessary to help bridge a huge deficit in the 2017 National Budget, but promises to lobby for its removal next year.

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