Budget 2018 preparations
…urges rise in threshold
Highlighting that many of its recommendations advanced through consultations have not been taken on board, the Federation of Independent Trade Unions of Guyana (FITUG) has expressed hope that Government will “positively” consider implementing the body’s proposals for Budget 2018 which could bring “greater tax relief” to workers.
FITUG, through an official statement on Tuesday, said that it was looking for Government to increase the income tax threshold to $100,000 per month, which would reflect a near 67 per cent increase from the current threshold, which stands at $60,000.
FITUG is also seeking to have Government re-introduce tax breaks for taxpayers with dependents, in addition to removing about one-third of the tax threshold for income earners who earn in excess of $180,000 per month and to have a second tax tier set at $250,000 per month at a chargeable rate of 40 per cent. The umbrella union is further requesting the removal of the Value Added Tax (VAT) on private health care and private education, in addition to removing the tax from electricity and water – which attracts VAT on bills in excess of $10,000 and $1500 respectively.
Other proposals the union body made include increasing the Old Age Pension to $30,000 monthly, reintroducing electricity and water subsidies for pensioners, and increasing public assistance from $7300 to $12,000.
FITUG is also calling on the present Administration to examine the introduction of 24-hour State-operated day care for single parents and utilising the Government school buses, when not transporting students, to transport pensioners to uplift their pensions and to visit medical facilities.
Sugar industry
FITUG also noted the plight of employees in the sugar industry and called on Government to seriously re-examine its plans, especially given the “sad reality of Wales”, referencing the reduced employment and decreased business sales in the area and its surrounding communities.
The body also called on Government to consider school bus services to transport all school-aged children to and from the area; to establish programmes to promote investment in the area with a view to spur job creation; to establish skills training programmes to allow the former sugar workers and the youth to receive skills and to provide social counselling to reduce the “depression and social anxieties” that FITUG noted, exist in the Wales area.
Early budget danger
Recognising that the 2018 Budget will again be presented before the commencement of the fiscal year, FITUG affirmed its contention that the “full 2017 economic picture” would not be known at the time of its presentation.
On Monday FITUG met with Minister within the Finance Ministry, Jaipaul Sharma at the Finance Ministry where the union body shared its vision for the 2018 National Budget.
“The Federation did point out to Minister Sharma that it was disappointed that proposals it submitted regarding the 2015, the 2016, and the 2017 National Budgets, it seems, were not considered,” FITUG explained.
According to the Union, Minister Sharma advised that several other bodies will be engaging the Government on the Budget and after a complete review is conducted, “the Administration will decide on what matters would be featured in the 2018 Budget”.
