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Foreign companies making US millions in Guyana must pay fair share of taxes-says Jagdeo
…as City Hall waives rates and taxes for GTT
Vice President Bharrat Jagdeo
Kaieteur News-Vice President Bharrat Jagdeo is opposed to the Georgetown Mayor and City Council (M&CC) granting rates and taxes waivers to foreign companies.
The Vice President told reporters on Thursday at his weekly press conference held at Freedom House, Robb Street, Georgetown that the decision by Georgetown City Council to grant a 25% waiver on outstanding rates and taxes to ONE Communications, formerly Guyana Telephone and Telegraph Company (GTT) was misguided.
“We are opposed to this City Council giving waiver to GTT…these foreign companies for their rates and taxes, it’s ridiculous. They claim they don’t have money; these are big companies they have huge assets here; they are selling their assets making tens of millions of US dollars in Guyana, they should pay their fair share of taxes at the City Council,” Jagdeo said.
The Vice President criticized the rationale behind granting waivers to foreign entities, particularly those with significant financial resources, noting that these companies have been benefiting from deals made decades ago. He said, “Why do you have to give a foreign company that’s flush with cash from selling their properties here…”
Jagdeo argued that the waiver process lacks transparency and fairness. He emphasized the need for a clear policy to guide such decisions, stating, “We have made it clear, if you are giving… if you have a policy to give a waiver then it must be a stated policy, people must not come into anyone’s office to negotiate a waiver…”
Additionally, Jagdeo asserted that foreign-owned companies should be excluded from receiving such waivers. He said, “Why we should be giving rich foreign companies that make a ton of money, waiver of their taxes in the city when this is something that they signed up (for).” Further, he underscored that in GTT’s case the waiver is not part of a fiscal incentive.
Kaieteur News had reported that Minister of Local Government and Regional Development, Sonia Parag called the decision by the Mayor of Georgetown, Alfred Mentore, and the City Council “alarming and unlawful.”
Georgetown City Hall building
She highlighted that Section 215(3) of the Municipal and District Councils Act, Cap. 28:01 clearly stipulates that any discount on rates due must not exceed 10%. “By approving more than double this legally mandated limit, the mayor and his council have blatantly disregarded the rule of law and their fiduciary duty to the citizens of Georgetown,” the minister said.
Minister Parag criticised the Council’s financial choices and argued that the decision comes at a time when the Council continuously laments its financial woes and requests bailouts from Central Government, claiming to be cash-strapped.
However, in his response to the minister’s criticism, Mentore defended the City Council’s decision to grant the 25% tax waiver on accrued interest to the telecommunications company. He contends that the waiver was within the Council’s authority, aimed at enabling the company to settle outstanding taxes. The mayor accused Minister Sonia Parag of overstepping boundaries and misrepresenting the situation.
(Foreign companies making US millions in Guyana must pay fair share of taxes-says Jagdeo)
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