…free water for pensioners reinstated
Pensioners can expect a significant bump in their pension payment commencing from January 2021, President Dr Irfaan Ali announced on Monday.
President Ali said that Wednesday’s budget will make the increase in old-age pension, from $20,500 to $25,000, official. The last increase in old-age pension was back in 2018 when the APNU/AFC Administration increased the pension payments from $19,500 to $20,500.
On the campaign trail, the People’s Progressive Party/Civic (PPP/C) promised to increase old-age pensions periodically within its five-year tenure.
The PPP/C Government had introduced a $2500 subsidy for Guyana Water Incorporated (GWI) bills for pensioners. It was revoked by the APNU/AFC Administration.
During its campaign for the March 2020 General and Regional Elections, the PPP promised free water for pensioners and on Monday, President Ali delivered on that promise.
“In order to reduce the cost of living, put more money back into our pensioners’ pocket and ensure that their welfare and well-being are taken care of, we are going to revert to free water for pensioners,” he said.
Additionally, the President also announced the reversal of VAT on water and electricity.
“We will immediately see a reversal of VAT on electricity and water. This, of course, would bring tremendous benefit to all aspect of our economy. It would reduce the cost of operations for manufacturing, it would help the poultry industry, it would help every household and every aspect of economic life. Indeed, it would also put back money in people’s pocket,” the President stated.
The David Granger Administration, in their 2017 budget presentation, implemented a reduction in VAT from 16 to 14 per cent but also proceeded to impose the 14 per cent on water bills exceeding $1500 and electricity bills exceeding $10,000.
Back then, Opposition Leader Bharrat Jagdeo had remarked that the budget would kill the Private Sector and unleash untold hardships on the nation.
Jagdeo argued that the incorporation of taxes was the highest he has ever seen and has the ability to destroy any possibility of a recovery of the country’s economy.
“We heard, for example, the Minister fulfilling a promise to the electorate on reducing Value Added Tax (VAT) from 16 per cent to 14 per cent, but in the same breath, they have decided to extend VAT payments to water bills and electricity bills above a certain level,” Jagdeo had said. (G2)
