– says Finance Minister

OVER the years the private sector has been lamenting “heavy taxation” which might be restricting their operations, but Minister of Finance Winston Jordan has said that the private sector’s cries are a ruse to hide what is going on in that sector.

“You need to investigate whether the heavily taxed private sector is so…we have reformed the taxation system significantly in favour of the private sector, so this business about tax and tax, is used [as] a ruse to hide what is going on in the sector… so do not be fooled… part of the reform of the tax system has even put the public sector under tax,” said Minister Jordan in an invited comment on Wednesday.

Jordan contended that the revenues which government has been getting since 2015, has come from an expanded base and not new taxes on the private sector. He believes that contrary to what is being said by the private sector, government has done a lot to improve the sector and promote business. The minister referred to the tax amnesty which was proferred in 2018 to allow taxpayers who had defaulted to sort it out with the Guyana Revenue Authority (GRA).

The GRA had announced in January, 2018 that it would be providing a period of amnesty for delinquent taxpayers. The move by the authority was in keeping with the measures announced by Minister Jordan in his Budget 2018 speech.

Jordan had said that the period of amnesty for taxpayers, both corporate and individual, would ensure that they are able to get in order, the filing of true and correct tax returns and payment of their true and correct taxes. GRA collected approximately $11 billion as a result of the amnesty.

In response to a question on whether government would conduct another amnesty, the finance minister said the government cannot do another amnesty, because it is unfair to other taxpayers who are paying their taxes regularly and on time.

“We have given one amnesty over nine months and I think that is enough; now we go after delinquent taxpayers significantly,” asserted Minister Jordan.

In addition to the issue of taxes, Minister Jordan responded to questions about the possibility of increasing the minimum wage for employees in the private sector, noting that government is responsible for that sector only under specific categories of the Factories Act, through the Department of Labour.

“Beyond those private arrangements, you have to deal with the particular private sector entity,” said the minister, adding that the private sector pays more than the public service, so public servants should enjoy their one-off, tax-free back pay.

Government has approved retroactive increases of nine per cent for public servants who work for $99,000 and less; 8.5 per cent for public sector employees who work for $100,000 and under $1 million and 3.5 per cent for persons who work for about $1 million. In addition, the minimum wage was increased from $64,220 to $70,000.

Minister Jordan believes that an efficient public service is required to service a growing private sector.