Dear Editor,
When the APNU/AFC regime took power just 22 months ago, Guyana’s economy was by far the best in the region. The PPP/C Administration had done a tremendous amount of work, and the country was being referred to as an example of good management. In fact, it was an example not only for the Caribbean, but for the wider Latin American region as well.
Even when the PPP/C Administration lost the majority in Parliament, the economy continued to do well. This was a remarkable achievement, considering that the then Opposition APNU/AFC used its combined one-seat majority to try to halt progress in the country.
In the 22 months that the APNU/AFC has occupied the seat of power, without the same hindrance, this regime has thrown our country in reverse gear. Investors have lost confidence in the economy and are now very reluctant to go into new ventures. Small producers are finding themselves more and more marginalised and driven out of business. The regime has introduced more than 200 tax measures since taking power. No group of persons has been spared; even the housewives with a little kitchen garden and the jackass cart operators are now being taxed.
The VAT, which while in opposition the APNU/AFC promised to reduce from 16 per cent to 10 per cent in the first hundred days, was only reduced to fourteen per cent at the beginning of 2017. However, the regime added the VAT to the more than one hundred essential items that the PPP/C Administration had zero-rated. It has also put VAT on electricity and water. This has raised the cost of doing business and has reduced the disposable incomes of the ordinary persons in our society.
These measures, taking place at a time when unemployment is on the rise, are reducing the purchasing power of the masses of people. Sugar workers are being dismissed, many workers in forestry are on the breadline, and the private sector is relieving itself of staff due to the general economic slowdown that has taken place. All this is putting more pressure on the economy.
As purchasing power falls, less would be imported and less collected as customs duties — an important source of revenue. The impact of these vindictive acts of this regime, which are political in nature and are aimed to punish sugar workers, will boomerang on the regime.
The addition of VAT on machinery and equipment in agriculture and mining would eliminate a lot of small operators in this sector. That would send a lot of small operators bankrupt, or at a minimum force them to dismiss workers. This is happening increasingly in agriculture, mining and retail services.
All these measures are stifling the economy and creating great hardships. This Government is not only destroying the economy with measures, but, along with other measures it is taking, is stifling hope.
The tax being put on school fees and the proposed increase in University fees have gone to damaging our human capital. These measures could see less children going to school. Some would be forced to leave private schools and join the public schools. This means that more pressure would be put on the public schools. Larger classes for teachers to manage could lead to the falling of standards in the delivery of education, which would be reflected in poor pass rates.
The closing, or drastically reducing of GuySuCo’s operations, along with the hundreds of other workers being put on the breadline, would also put a lot of pressure on our National Insurance Scheme. The amount of contributors to the Scheme would be drastically reduced on the one hand, while more and more persons will become eligible for NIS pensions. With not many areas for NIS to invest in, real danger exists that the Scheme could go into crisis. More workers could become destitute.
Allowing the City Council to introduce measures like parking meters would also serve as a disincentive to business.
The regime obviously has no viable plan to create jobs. The statement by President Granger about people resorting to selling cook-up rice and plantain chips is a pathetic one coming from a President.
The rapid deterioration of the economy is reflected in the weakening of the Guyana dollar vis-a-vis the US dollar. This will have major negative consequences on production and on cost-of-living in our country.
All of these negative occurrences are impacting on the regime’s popularity. As the regime loses support, it can resort to repression.
In less than two short years, a lot of the social, economic and political gains have come under great pressure. The future looks extremely ominous.
The policies of the APNU regime are pushing the nation backwards. We are staring into the abyss.
Sincerely,
Donald Ramotar
