THE Federation of Independent Trade Unions of Guyana (FITUG), has expressed optimism that the 2019 national budget would give positive consideration to reducing the difficulties of everyday life.

Through an invitation from the Ministry of Finance, the body met with Junior Finance Minister, Jaipaul Sharma and other officials of the ministry on Thursday to offer its suggestions for the 2019 Budget.

In a press release issued on Friday, the Federation contended that the Budget ought to be developed within the context of the government’s objective to deliver “A Good Life for All Guyanese.”

Noting that it will be the final budget before Guyana becomes an oil producing state expectedly in 2020, the body said, “We also pointed out several concerns shared regarding the arrangements for oil production and contended that a better deal should have been hammered out.”

It noted the proposed establishment of the Sovereign Wealth Fund (SWF) “which we felt, on paper, was a good initiative but noted there is strong need for institutional safeguards and appropriate policies if we are going to avoid the pitfalls that many countries have faced and are facing.”

The body urged the Finance Ministry to be careful about assumptions regarding the budget. The Federation noted that between 2014 and 2017, tax revenues have risen from $136.5B to $171.5B with the VAT and Excise receipts growing by nearly 25 per cent and income tax revenues rising by just over 31 per cent.

“We felt that this was a substantial increase, especially noting the timeframe. The large rise took place despite a reduction of the rate of VAT and improvements in the Income Tax regime and has greatly eaten into the imposed pay increases the government has awarded and boasted about,” FITUG said.

The body urged the government to consider increasing the tax threshold to $100,000 per month; introducing relief for taxpayers with dependents; removing the 1/3 income tax threshold and replacing it with a second tier at $200,000 per month; removing VAT from electricity, water and private health care; widening the income tax base through capturing those engaged in tax evasion; and re-aligning tax exemptions with employment creation and national development goals.
FITUG also offered advice on the sugar industry and proposals to cushion the effects the closures have had on workers. The body said it is hopeful that the government would favourably consider its suggestions for the 2019 budget.