Minister blasts cash-strapped M&CC for 25% tax waiver to One Communications

…says decision unlawful

Local Government and Regional Development Minister, Sonia Parag has expressed her dissatisfaction, with a recent decision made by the cash-strapped Georgetown Mayor and City Council (M&CC) to grant 25 per cent waiver on taxes owed to the council by One Communications formerly known as Guyana Telephone & Telegraph Co Ltd (GTT).
Parag lambasted the City Council over its decision. Parag said: “This decision comes at a time when the Council continuously laments its financial woes and requests bailouts from Central Government, claiming to be cash-strapped. It is baffling that while pleading poverty, the Council finds it prudent to forgo significant revenue that could have been utilised to improve vital services such as garbage collection, market management, and overall sanitation – all areas in which they have consistently, and miserably failed.”

Meanwhile, in an interview with Guyana Times, Town Clerk Candace Nelson revealed that the decision was taken after the multibillion-dollar company raised an issue with the Council.
“GTT raised at that meeting that they believe that the taxes that they were paying on one of their properties seem to be too much compared with another business that they mentioned. So, it was decided then in a nutshell that they can do another valuation for that property. And when that valuation is presented to the council, well, the council basically is going to meet and decide how they’re going to deal with it,” she said.
She added that following the reevaluation of the property it was proposed that a 25 per cent waiver be placed on the interest accumulated by the company.
“The Mayor later attended one of the finance committee meetings, and he raised the issue on any other business. And the recommendation was made at that finance committee meeting that when the valuation is provided by GTT, it will most likely be backdated and the interest that would be accumulated on that account should receive a 25 per cent waiver. So that recommendation is what was sent to the council yesterday, and the council by majority approved that recommendation of the finance committee,” the town clerk added.
However, Parag said the move is unlawful. In a statement on Monday, the Minister explained that Section 215(3) of the Municipal and District Councils Act, Cap. 28:01, clearly stipulates that any discount on rates due must not exceed 10 per cent. The town clerk cosigned the Minister’s statement in relation to the act noting that she’s unaware of instances where the council is permitted to exceed the 10 per cent limit.
“I too am guided by section 215, where it says that 10 per cent can be offered by the council and that 10 per cent is in relation to taxes that are paid basically in advance. I am not aware of any other section to give me. It could be that I’m ignorant at this time, but I cannot recall any other section that can give the council such authority.”
Meanwhile this controversial financial move comes some months after the Council had passed an ‘Institutional Rate Policy’ seeking to exempt political parties from paying rates and taxes or reducing those sums as low as 25 per cent – a move that would benefit the Peoples National Congress (PNC)-led A Partnership for National Unity (APNU), which owes the Council millions in taxes.