The David Granger administration continues to implement economic policies and initiatives, which, if not rejected by the populace, could see the levels of poverty increasing significantly, as the middle class diminishes.
These policies are so badly designed and contentious, that even specialist economists within the Finance Ministry are having difficulty implementing them and understanding how in the short and long-term they could actually benefit the poor.
This has led to confusion within the Ministry, as some senior officials there are claiming that the Senior Minister Winston Jordan is not acting on their advice, but appears to be following some outdated economic philosophy, which is underpinned by the political grounds of the Peoples National Congress.
That Minister and his Junior Colleague, Jaipaul Sharma, are not only doing a horrendous job, but are seemingly enjoying it, despite the public’s criticisms, warnings and justified scepticism displayed by key stakeholders in the financial and business sectors, as well as the citizenry.
These Ministers can no longer afford to take credit for the hard work, projects and deals made by their predecessors before they left Office. Even if they don’t want to admit it, they are still implementing and gaining benefits from the proposals that the PPP left them.
Surely, they are skilled enough to come up with more modern and futuristic ways of creating economic wealth that would in turn be evenly disturbed to the public. Taxation cannot be the only economic principle they understand.
They must have the ability to come up with policy initiatives to attract domestic and foreign direct investment that could lead to higher levels of job creation for the locals, and an even higher standard of living for the poor and vulnerable.
Also, it is imperative that these Ministers stop increasing taxes on basic Government services and import, as well as export commodities. So far, all of the taxes that they have hiked by considerable amounts affect the working class and the poor. They are placing additional hardships on single mothers and rural families because they have neither the disposable income, nor savings to pay these unsociable increases.
Already, there is VAT on water, electricity and a host of items which the Government foolishly moved from being zero-rated to the exempt list. Property taxes have gone up and the Government has introduced a host of higher taxes which are affecting agro and manufacturing-based businesses. Small businesses are not getting the push they deserve because they are still waiting on the Government to lead the way by negotiating deals with the private sector that could lead to spill-off effects. Taxes on travel have also been increased prematurely, which in turn is affecting domestic travel.
Taxes on State land that have been leased and rented have also been increased. There is a tax on private education and the removal of several concessionary agreements between Government and investors.
Notwithstanding the fact that the Government will yield higher revenues, there will also be a poorer population given the misplaced priorities of the Government. The picture is even clearer when one looks at the millions of dollars spent from the public coffers on Commission of Inquiries, whose recommendations tell us exactly what we knew before they commenced working.
That is where our taxes are being squandered. Our taxes are funding the luxurious vehicles and jacked-up salaries for the Ministers, as well as the other conveniences which they enjoy. Our taxes are used to host all sorts of activities at home and abroad, which have a high political undertone and stench. Our taxes are being misused to fund so called social cohesion activities which are really campaigning events for the APNU and AFC across the country.
Despite garnering higher revenue year after year, crime remains high and our roads remain in a state of disrepair. Our public education system is still unfunded and performing poorly, whilst the University of Guyana is in the same place where the PPP left it. Inflation is bound to increase and the country’s per capita growth will not show any remarkable increase. The sugar industry is on its last breath and the rice industry is limping along. The middle class is on its death bed, as these repressive measures of the Government are forcing our country back into poverty.
The truth is the taxation policy of the Government will not see an increase in public expenditure that would result in direct benefits for the poor and ordinary Guyanese. Corruption is widespread and public appears to be taking form.
A new course must be charted which is defined by lower levels of taxation on the poor and working class, as well as increased ventures that create wealth for the working class.
