Latest update December 21st, 2024 1:52 AM
Taxation should be fair and progressive
DEAR EDITOR,
There is a story making the rounds in India following the apparent suicide by ‘Coffee King’ VG Siddhartha. His death has sparked a heated debate between the Modi administration and the opposition Congress Party on the issue of ‘taxation harassment’, which some felt may have contributed to Mr. Siddhartha’s untimely passing.
My own view on the issue of taxation is that it should be fair and progressive. All individuals must be required to pay taxes on income, except for those earning below the income tax threshold. I think, with the anticipated flow of oil revenues, the income tax threshold should be increased to a minimum of $100,000 monthly. This will allow for greater disposable income for those earning at the bottom of the salary scales.
There should also be no income tax exemptions regardless of rank or status. The President and the Commissioner-General of the Guyana Revenue Authority among other high-income earners should be required to pay taxes on their earnings. This would send out the correct signal to others that the payment of taxes is a national imperative, in addition to putting emphasis on the principle of equity and fairness.
Regrettably, our taxation principle in Guyana is regressive rather than progressive with little consideration given to those with large family members and special circumstances as was the case in previous years.
It is my understanding that ExxonMobil is exempted from the payment of taxes on their revenues, which will be borne by the Guyana Government. This in my view, if correct, needed to be revisited. This could potentially result in a loss of billions to the treasury, which as a country we can ill-afford.
Hydar Ally
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