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Mayor prepared to defend position on waiving interest on taxes in court
Kaieteur News- City Mayor Alfred Mentore has indicated that he is ready to defend his position on waiving the interest on rates and taxes for property owners in Georgetown, should the matter be taken to the court.
City Mayor, Alfred Mentore
In an invited comment with this publication, Mentore said that he is seeking legal advice on the way forward. “I am talking to my lawyers on the matter and looking at options, what other methods in terms of the Act to assist tax payers but if the matter goes to court I am prepared to defend the decision,” Mentore said.
Last week, Minister of Local Government and Regional Development Sonia Parag issued a warning to the Georgetown Mayor and City Council (M&CC) over its move to implement what she deemed an “unlawful and unauthorised” financial regulation to waive interest on outstanding rates and taxes owed by property owners in the city.
In a letter sent to the council, Minister Parag noted that it came to her attention that the Mayor along with the APNU+AFC- aligned councillors have unlawfully passed and are now seeking to implement a purported financial regulation which will allow for the waiver of interest on rates and taxes owed by property owners in the city.
The Local Government Minister who in her letter urged the council to “cease and desist” from such unlawful actions, noted that the Municipal and District Councils Act, Cap. 28:01 of the Laws of Guyana, “expressly and exclusively” vests the authority to make financial regulations in the Minister.
“Section 146(1) of the Act is unambiguous. That power lies with the Minister, not with you…” Parag said adding that “Section 146 (1) states: The Minister may make financial regulations for controlling and managing financial business of councils.”
According to the Minister, the legislation goes on to outline the scope including matters related to accounting, borrowing, tendering and the receipt of revenue. Parag noted that “Subsidiary legislation by its nature must be made by the authority designated by statute. You are not the authority designated by statute. Any attempts to do otherwise are ultra vires and legally void.”
In response to the letter, Mentore, cited Section 146(1) of the Municipal and District Councils Act, Chapter 28:01. He noted while the letter grants the Minister the authority to make financial regulations for controlling and managing the financial business of councils, it must be noted that there has been a misapplication of this section in your correspondence.
Further, he said the City Council has not enacted any new financial regulations or by-laws in relation to the waiver of interest accrued on outstanding taxes. Rather, the decision was made as part of our ongoing efforts to address the financial hardship being experienced by many property-owners/rate payers in the city whom are struggling with the burden of accumulated interest on outstanding rates,” Mentore said, adding that the decision was taken after thorough deliberations, feedback and appeal by citizens and in full compliance with the established financial procedures of the City.
Additionally, he noted that the City Council’s authority to take such steps is not limited by Section 146(1) of the Municipal and District Councils Act. Mentore explained that the decision to grant relief to property-owners is a part of the Council’s broader responsibility to ensure the well-being of our constituents and to ensure that vital municipal services continue to be funded in a manner that takes into account the financial challenges faced by our residents.
(Mayor prepared to defend position on waiving interest on taxes in court )
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