Private Sector, unions petition Parliament over Budget concerns

The Private Sector Commission (PSC) and prominent labour union bodies have written to Speaker of the National Assembly, Dr Barton Scotland, pleading for an intervention on the part of the House with a view to addressing their concerns.
The demands were stated in a joint letter addressed to Dr Scotland, Prime Minister Moses Nagamootoo and Opposition Leader Bharrat Jagdeo from Eddie Boyer, president of the PSC, Lincoln Lewis, General Secretary of the Guyana Trades Union Congress (GTUC) and Kenneth Joseph of the Federation of Independent Trade Unions of Guyana (FITUG).

According to the joint missive to the Speaker and dispatched on Friday last, among the issues of concerns are the new Value Added Tax (VAT) regime, the imposition of new taxes, the further empowering of the Guyana Revenue Authority, the removal of subsidies from pensioners and the new environmental and mining taxes.
On the matter of VAT, the private sector and labour bodies said: “Though it is not lost on us that A Partnership for National Unity/Alliance For Change (APNU/AFC) in its 2015 manifesto committed to the reduction of taxes from 16 per cent to 14 per cent , which is applauded, of concern is the potential to negatively impact direct and indirect business, consumers, workers and citizens.”
As it relates to the new taxes to be applied to electricity, water, healthcare, education and the internet – areas considered vital to the development of Guyana and Guyanese – the methodology being applied may very well turn out to have adverse effects.

Also raised with the Speaker, Prime Minister and Opposition Leader was the matter of the amendments to the Income Tax Act to facilitate garnishments by the GRA.
According to the combined letter which has since been released to the public, “the strong view is held, this is unnecessary based on existing powers and rights of collection.”
It was pointed out that this was one of the more contentious issues that will have to be resolved.
As it relates to the imposition of the Environmental Tax across the board with regards locally produced and bottled products, the trio has since called for the tax to be reconsidered.
It was noted too that the “tax measures on the mining industry would reverse the benefits from several concessions and should be removed since the concern is that the additional taxes would be a burden and disincentive to participating and upholding standards required in the sector.
On Friday, Finance Minister Winston Jordan in his rebuttal to arguments to the debates on the 2017 National Estimates in the National Assembly lashed out at the private sector for its vociferous public outcries, accusing them of seemingly being only interested in concessions.
“Everybody wants concession but they never tell you how much more jobs will be created,” or taxes to be paid, saying the process is “not a numbers game, this is serious business and everybody knows like prices, concessions are sticky: once you give them it is difficult to take it back,” Jordan had proclaimed.
the Finance Minister recalled: “I told the private sector since last year, don’t come to me for concessions… Don’t come to me for concessions, I don’t believe in concessions.”
According to Jordan, concessions are sought by those only with sectional interest. Instead he insisted on a “tax code that is uniformed and uniformly applied.”
Repeatedly singling out the PSC for criticism, the minister said there were already provisions in the laws for concessions and still there are demands so, “how can you take such people seriously?”
The minister continued his tirade against the Private Sector Commission and recalled that during a recent function hosted by the Guyana Manufacturers and Services Association (GMSA), he was forced to use as example a foreign investor.