Reverse some measures to benefit poorer Guyanese, businesses – Opposition Leader

Budget 2016

Opposition Leader Bharrat Jagdeo has called on Government to humanise Budget 2016 by

Opposition Leader Bharrat Jagdeo

reversing and adjusting some of the measures outlined by Finance Minister Winston Jordan in favour of policies and programmes that will directly benefit the poor, masses and struggling, as well as emerging small-scale Guyanese businesses.
As a result, he called for the extension of the band on the importation of used vehicles from eight to 12 years; a move which he said would benefit the poor and working class.
Jagdeo was speaking with Journalists on Tuesday, where he discussed the impact of the 2016 National Budget, what it signals and means to the country. The country’s financial plan was read in the National Assembly last Friday by the Finance Minister.
The Opposition Leader said these simple things are bound to affect the poor in society. He spoke of the consequences of the ban on vehicles older than eight years, noting that persons who purchase these types of vehicles are general poor individuals and those in poor middle class.
“I spoke with some auto dealers who said that this decision will impact a large number of persons, particularly the poor people because most of the vehicles that come in the country now are over eight years old and there is a huge market on these vehicles”. Based on what was told to him, Jagdeo said many of the persons are even unable to pay the purchase price for these vehicles and have to take them on terms.
“I am asking the Minister of Finance and President Granger to extend this eight-year ban to 12 years so that that group of people can continue to drive their vehicles and not have the additional burden of finding over a million dollars more for acquisition,” the Opposition Leader said.
According to him, some of these measures have been announced in keeping with the concept of a green economy and less pollution. He said he has always managed to balance the country’s strong push for a green economy through the Low Carbon Development Strategy, with the need to improve people’s lifestyles and not make their lives more burdensome.
“In Guyana, the per capita emission is less than two tons and is not under any obligation to cut that. The [Intended Nationally Determined Contributions] INDC submitted by this Government has no target to cut the per capita emission. The US and other developed countries have per capita emission of over 20 tons”, he said, seeking to explain that these vehicles are no threat to the environment.
Jagdeo also urged Government to rethink its decision on the ban on used tyres.
“I can understand the need to get better tyres… I am in favour of withdrawing this ban on used tyres and instead strengthen the Guyana National Bureau of Standards (GNBS) to ensure that the quality of used tyres coming into the country is better”.

Other measures
Another issue the Opposition Leader highlighted was the increased prices placed on licences for firearms. He again urged Government to exempt Amerindians and the farmers in this regard.
“If the Amerindians have a shotgun in the interior it is not used for pleasure. Many times it is used as a tool to live,” he said, continuing “I want to urge the Government to cut the more than 150 licence fees increase by half”.
He said in his entire familiarity with budgets, in terms of licence fees, this is probably the largest, not only in numbers but in percentage.

Salaries
Jagdeo also spoke of Government’s announcement that it will be increasing the salaries of public servants, but instead will be awaiting the collective bargaining with workers unions. However, Jagdeo related that the Discipline Services does not engage in collective bargaining and while Government is awaiting discussions with Unions before salary increases, the Discipline Services will not fall under that heading. He suggested that the Discipline Services be given their salary increases.

Tax compliance
Meanwhile, with the recent announcement by the Finance Minister that the Guyana Revenue Authority (GRA) will be enforcing stringent measures to ensure tax compliance, Jagdeo said the GRA does not have the capacity to deal with these now.
During his budget presentation last Friday, Jordan announced that Government, through the GRA, will be taking every step to go after delinquent taxpayers, to ensure that they become compliant with the law.
The stringent measures will be meted out to persons applying for firearm licences and licences to carry out trade and businesses. These persons, he said, will have to be up to date in their tax payments.
But Jagdeo said Government is implementing these new policies at a time when the financial organisation is marred by controversy, when there is no substantive Commissioner General or acting Commissioner General. More than that, Jagdeo related that the organisation does not have the facilities to undertake the new policies at this time.
“It has limited capabilities to do audits of offending tax payers, particularly large tax payers. It has not been able to go after many of them because of the limited capacity to do all of that. How will it be with this large number of people, who will now have to come to the GRA office to seek tax compliance,” the Opposition Leader questioned.
He said this new policy could bring in about 70,000 persons who will have to seek out tax compliance.
“Just imagine 70,000 persons showing up to GRA in addition to what they have during the course of the year and assuming 50,000 of them have not submitted their returns for the past seven years, that is another 350,000 applications going into GRA”.
Jagdeo said any right thinking person would know that the GRA does not have the capacity to do this. He said it would become a bottleneck for business and create opportunities for greater corruption and didn’t think that it would significantly impact revenue collection.
“If GRA does not have the capability to go after the big ones to do the audit, how will they have the capability to go after the farmer who has five acres or the taxi drivers”. Said he does not know how it will bring in taxes. What he was sure about was that it was going to be an administrative nightmare.