…conflate in Guyana
The saying goes… “death and taxes are two of the certainties of this life.” Well, in Guyana, seems the PNC-led Coalition Government wants to change this to “death THROUGH taxes is now a certainty here”. Listening to their Finance Minister deliver his third budget speech in 18 months, even his colleagues on the government benches were thrown into deep shock.
All they heard was a litany of gloom and doom. Back in the days of the first PNC regime, the populace used to glue their ears to the radio to hear what new taxes or “bannings” would be introduced to make their life even more miserable. It’s clear this government takes its vow to cleave to the ideas of their Founder Leader Burnham very seriously. During the PPP’s 23 years, they managed to introduce a new mantra – no new taxes!!
But all of that’s gone and the old (not so happy days) are here again: taxes and more taxes will fall on the middle class and even the “used tyres” they can afford is banned. And we can start right there to deconstruct this budget to show that this government in general and this Minister in particular don’t know their a55 from their elbow when it comes to handling the economics of running a country.
Even though the PPP was able to pull up our per capita GDP so we now qualify as a “medium income level” country – and not the Highly Indebted Poor Country tag we inherited from the PNC – we’re still a pretty poor country – still barely above Haiti in the rankings. Even Suriname next door has twice our per capital GDP. So why ban used tyres? These are affordable to our “middle class” who can also only afford used cars that are brought from Japan.
Wouldn’t it be better to impose a minimum tire thread depth? Frankly, the “new tyres” that’ll be brought from China will be worse than most of the used ones imported from, for instance, the USA! Why? Well, one dealer told your Eyewitness when he goes to China to purchase tyres, the first question is “How much you want to pay?” Meaning you’ll get “new garbage tyres” if that’s all the dealer’s willing to pay. And in the Guyanese market, that’s all he can sell so that’s all he’ll buy.
And we don’t have to elaborate on the elaborate hoax pulled by this government on their promise to “lower VAT”. By lowering it down by 2%, but now applying the 14% VAT on electricity and water, they’ve put in a thump and pulled out a plum – for themselves.
The poor will now be further strangulated by taxes!
…with no benefits
The Minister didn’t mince any words on the sugar industry and its 17,000 workers supporting 70,000 persons directly and 150,000 persons overall. Subsidising the industry while it is reorganised to stand on its own two feet (management and workers) is now dubbed as “money wasted”!! Forget about its $52M CoI that recommended subsidising GuySuCo for three years while a buyer is sought.
And rice? They’re on their own. No reduction of taxes on the inputs that farmers use to produce paddy. So what if rice farmers support almost 100,000 Guyanese? Death through taxes is certain, no? What about the working poor in the Public Service? “Later” for them too! Not even the Christmas Bonus the PPP used to give out.
So, exactly what is this budget doing for the ordinary people? Zilch! Nada! Nyet! But maybe there’s a method to the madness. Probably expecting more persons to use their US visas, the Government’s increased the departure tax! They’ll make a bundle.
Just so they can pay for their perks and 50% salary increases!
…and sin taxes
Pity the youth men who may want to drown their sorrows in the imported beer they prefer. It’s an equal opportunity “sufferation” budget.
So taxes been raised to the sky!
