Private Sector did not withhold support from APNU+AFC Government; responded to policy environment – Jagdeo

General Secretary of the People’s Progressive Party (PPP) Dr Bharrat Jagdeo has dismissed claims by the APNU (A Partnership for National Unity) opposition that the private sector deliberately withheld support from the former APNU+AFC Administration between 2015 and 2020.
Jagdeo, also Guyana’s Vice President, argued that the business community’s response during that period was not about withholding support but rather a direct reaction to the policy environment created by the Government of the day.
His comments follow remarks first made by APNU candidate, attorney Dexter Todd, and later echoed by the party’s leader and presidential candidate, Aubrey Norton. Both suggested that private sector hesitation was a key factor in the coalition’s struggles while in office.
Jagdeo countered that the private sector’s slowdown stemmed from APNU+AFC’s own fiscal decisions, particularly the introduction of nearly 200 new taxes. He added that farmers were also hit hard, pointing to VAT on pesticides and fertiliser, higher taxes on machinery, and a threefold increase in land and water charges in places like Region Five.
“Now, if you promise the miners, as they did in their manifesto, to remove all the taxes that the PPP had on them, they will vote overwhelmingly for APNU. And then the moment you get into office, you increase the tributary tax, you increase the royalty rate, and machinery and equipment for mining that was tax-free before, VAT-free, you put a 14 per cent VAT on it. So, if a miner has to buy an excavator now, he has to pay $5 million more in taxes than he didn’t have to pay before under the PPP. Don’t you think that the miners are going to slow down on investing? It’s only logical. It’s not withholding support. It is responding to the environment,” Jagdeo pointed out.
He drew a sharp contrast between the APNU+AFC period and the PPP/C’s approach since taking office in August 2020. Despite the constraints of the COVID-19 pandemic, he said, the PPP/C Government immediately issued an Expression of Interest (EOI) for hotel investments, recognising the urgent need for expanded tourism infrastructure.
To encourage investment, the PPP/C Administration revised the incentive regime – offering land at preferential rates, a 10-year tax holiday, and removal of the withholding tax on repatriated profits, in addition to existing duty-free concessions on building materials and equipment.
As a result, 11 new, internationally branded hotels are now under construction, six of which are expected to open next year. Jagdeo said these developments will create more than 6000 jobs and open new opportunities for Guyanese businesses in food supply, cleaning services, and transportation.
“As a result of that, today we have like 11 international hotels – new international hotels – six are going to be open next year, producing 6000 jobs for our people. People respond to the policy environment you create. They didn’t suddenly do that. Who is going to work in these hotels? Our people… They’re going to be the managers. They’re going to be the chefs. They’re going to be the drivers. They’re going to be the waitresses. They’re going to be the people who are supplying food and services. A lot of Guyanese companies who have cleaning services will supply those. They would supply food to these hotels. Look at the linkages,” he said confidently.

Playing Victim
Jagdeo accused the APNU+AFC leadership of attempting to “play victim” instead of acknowledging the impact of their own policies. “It’s only logical – when you burden businesses with taxes, production slows. The Ministers were incompetent, and the private sector simply responded to the environment they created,” he said.
The PPP/C leader added that his Government’s decisions were deliberately structured to foster private sector confidence, attract foreign investment, and ensure Guyanese citizens benefit directly through jobs, management roles, and service linkages in the expanding economy.