Private Sector body slams Govt’s confused fiscal policies

One of the major Private Sector institutions in Guyana, the Georgetown Chamber of Commerce and Industry (GCCI) has expressed deep concern over the unclear fiscal direction the coalition Government has for 2018.

GCCI President Deodat Indar told Guyana Times on Tuesday that Budget 2018 “did not provide clarity on general fiscal direction in terms of the taxation and incentive regime”.
While the Budget, which was presented to the National Assembly by Finance Minister Winston Jordan on Monday, was touted as the people’s budget, Indar said the GCCI did not see major initiatives that would have material impact on job growth, something that was of major concern.
“Also, we did not see mitigation effects in the loss of jobs we will see pending the closure of more sugar estates; that includes Skeldon, Enmore and Rose Hall,” he added.
Further, the GCCI President noted that there was no indication that other sectors and sub-sectors had the capacity to absorb that level of unemployment when thousands of sugar workers become jobless.
“We are not satisfied with clarity or the general direction of the fiscal policies of the Government in relation to taxation and incentives,” he further emphasised.
However, he said the Chamber was pleased that the Government has moved to reverse some of its policies that had placed a burden on Guyanese.
He made reference to the removal of the Value Added Tax (VAT) on education and the reduction in the tributors tax for miners, something that was raised by the GCCI during consultations with Government.
“What we expected and we didn’t see is the oil and gas development of draft legislation, local content policy and development from the business community standpoint,” he also pointed out.
The GCCI President said that his organisation would continue to conduct its assessment of the 2018 Budget and once the estimates of expenditure were made available, it would provide an analysis.
He also made a commitment to provide more commentary on sectoral implications at a later date.
The Finance Minister on Monday announced that the tributors tax on gold miners was slashed from 20 per cent to 10 per cent, and they would still be required to file annual tax returns.
Jordan said this decision was made following representation by the Guyana Gold and Diamond Miners Association (GGDMA), which had also met with the Opposition to raise its concerns.
However, he noted that the Guyana Revenue Authority (GRA) and the Guyana Geology and Mines Commission (GGMC) would intensify their efforts to bring operators in the industry within the tax net. In addition to announcing plans to remove the VAT on private education effective January 1, 2018, the Minister said Old Age Pension would increase from $19,000 to $19,500, a 2.6 per cent increase.
Meanwhile, companies and individuals will be granted amnesty to file outstanding tax returns in 2018. However, if bogus returns were filed, individuals and companies would be penalised.
Jordan said all corporate and individual taxpayers who have not yet filed true and correct tax returns and paid their taxes would have between January 1 and September 30, 2018 to do so.
He explained that taxpayers who file and pay all principal taxes on or before June 30, 2018, would have all interest and penalties waived. Those, he said, who file and pay all principal taxes between July 1, 2018 and September 30, 2018 would get 50 per cent of interest and penalties waived.