Jagdeo condemns removal of tax waiver on manufacturing inputs

– calls for immediate reversal of “anti-manufacturing policy”

Opposition Leader Bharrat Jagdeo on Wednesday criticised the Government’s move to remove the tax waiver on inputs previously enjoyed by the local manufacturing sector. “The Government has gone completely insane,” Jagdeo declared in a statement. He posited that this was a desperate measure to bolster dwindling tax revenues.

“Rather than address the core reasons for the revenue shortfall, which is the precipitous drop in economic activities in the country and the ineptitude in defining a way forward, the Government has resorted to targeting the productive sectors of our economy,” he said.

The former President asserted that the Government appeared to be ill-advised on policy matters.”[The change] … will have dire consequences for those companies and may result in the closure of some of them and the loss of thousands of jobs,” he predicted.

In this regard, Jagdeo is calling on the Government to immediately reverse what he deemed an anti-manufacturing policy.

Efforts to contact Finance Minister Winston Jordan for a comment proved futile.

In May, President David Granger stated that the Government was moving to reduce concessions to foreign investors in order to create a level playing field for local investors.

“We want to ensure that foreigners are not given concessions, waivers and rebates, to which other people are not entitled. In fact, we want to reduce the amount of these concessions so that we become more competitive,” he stated.

The President had said he was concerned that businesses would become too reliant on concessions and not do enough to develop their enterprises and resources.

At that time, Jagdeo pointed out that it was absurd that the Head of State would make such a comment, adding that the move was “most counterproductive and anti-investment”. He said, “The President views the investment regime, which is currently in place intending to attract direct foreign investments, as too generous and promised that his Government will reduce these concessions.”

Jagdeo had in the past lambasted the A Partnership for National Unity/Alliance For Change (APNU/AFC) Administration for initiating anti-Private Sector measures.

He had highlighted that prominent among the measures was the political contamination of the Guyana Revenue Authority. Jagdeo explained that “sweetheart” deals were being offered to those who have been identified as making “political investments”, thereby creating an uneven playing field for their competitors.

He also mentioned the fact that policies were being formulated and implemented without any studies and understanding of the technical nature of the issues, for example, the announcement of policies regarding high levels of remission without an appreciation of a related incentive regime.