Armed robbers go off with $800,000
THE police are investigating a robbery under arms that occurred about 21:30h Saturday at Penitentiary Walk, New Amsterdam.
The victims, businesswoman Angela Sancho and her husband, were attacked and robbed by two men armed with handguns.
A police statement said the couple had just returned home and were about to exit their motor vehicle when they were held up by the two men who took away $800,000 in cash and a cell phone.
The robbers made good their escape.
Nude body found at Hope
The discovery of the nude body of a woman at Hope Access Road, ECD, around 08:10h yesterday, with suspected gunshot wounds to her head and other marks of violence to her body, is gaining the attention of the Police.
Four .32 spent shells were recovered at the scene.
A Police report said the woman is of East Indian descent, in her mid-20s, about 5 feet in height, of fair complexion and a slight build.
The body is at the Lyken Funeral Parlour.
The Police are asking anyone with information that may lead to the identification of the woman is asked to call telephone numbers 225-6411, 226-4585, 225-3650, 225-7625, 226-6978, 229-2701, 229-2702, 911 or the nearest police station.
Government comments on the Sanata privatisation and tax concessions
The Ministry of Finance has noted recent discussion in the media on the subject of the privatisation of the Sanata complex and the fiscal concessions granted to the investor (Queens Atlantic Investment Inc., QAII), and now wishes to offer the following clarifications.
1. Commitment to openness and transparency
The Ministry of Finance wishes to reiterate that this Government is firmly committed to the principles of openness and transparency in all of its privatisation and tax practices. In this spirit, the Government made the following announcements:
* April 2008 - the Privatisation Unit issued a comprehensive press release jointly with QAII on the privatisation transaction. This release was the subject of extensive coverage in the media.
* May 19th 2008 - the Head of the Privatisation Unit and the Head of Go-Invest jointly held a press conference and respectively dealt in detail with the privatisation transaction and tax concessions granted to QAII.
* June 5th 2008 - At the launching of the Guyana Times, President Jagdeo called on the Privatisation Unit to organise a seminar on privatisation policy and the law on tax concessions.
In addition:
* The Government has consistently published in national newspapers lists of beneficiaries of tax exemptions granted and the value of these exemptions.
* The Government has also regularly tabled in Parliament annual reports of the Guyana Revenue Authority which include substantial information on tax exemptions.
2. Fiscal concessions are rule-based and not discretionary
The overall principle that guides the Government in matters of this nature is that tax concessions are not discretionary but are based on the rules and principles set out in law.
The Privatisation Board’s recommendation and Cabinet’s May 2007 decision on the tax concessions to be granted to QAII clearly reflect this principle. The specific recommendation made and approval granted contained the following language:
“tax incentives being allowed by the Guyana Revenue Authority and Go-Invest provided they are allowed in law and subject to an Investment Development Agreement and in accordance with applicable practice”
The Head of Go-Invest subsequently announced the tax concessions granted to QAII at the May 19th 2008 press conference. These tax concessions were stated in a Memorandum of Understanding (MOU) executed between Go-Invest and QAII in March 2008. The MOU provided for two of the five firms to be operated at Sanata to be granted tax holidaysnamely the textile and antibiotics operations. However, these tax holidays have not yet been granted to QAII by the GRA and the Minister of Finance.
3. Issues related to the current laws governing tax holidays
Government re-introduced tax holidays in 1998 with special emphasis on pioneer industries. Specifically, the Income Tax (In Aid of Industry) (Amendment) Act 1998 states the following:
“2(1) Notwithstanding anything to the contrary contained in the Income Tax Act or the Corporation Tax Act, it is hereby provided that
(a) Where, in the opinion of the Minister, the trade or business carried on by a company, save a gold or diamond mining company or a company carrying on petroleum operations, is wholly of a developmental and risk-bearing nature and is likely to be instrumental to the development of the resources of, and beneficial to Guyana, the Minister may issue a direction to that effect and thereupon the income of such company shall be exempt from taxation for a period not exceeding ten years of assessment as the Minister may determine (hereinafter called the tax holiday period) commencing with the year of assessment in which such direction is issued.”
In 2003, the Government via the Fiscal Enactments (Amendment) Act 2003 amended the above provision by stating the following:
“21. Section 2 of the Income Tax (In Aid of Industry) Act is hereby amended by the substitution for subsection (1) of the following as subsections (1), (1A) and (1B) -
“(1) Notwithstanding anything to the contrary contained in the Income Tax Act or the Corporation Tax Act, it is hereby provided that the Minister may grant an exemption from Corporation Tax with respect to income from economic activity qualifying under one of the following circumstances
(a) the activity demonstrably creates new employment in one of the following regions
(i) Region 1: Barima-Waini
(ii) Region 8: Cuyuni-Mazaruni
(iii) Region 9: Upper Takatu-Upper Essequibo
(vii) Region 10: Upper Demerara-Upper Berbice;
(b) the activity is new economic activity in one of the following fields
(i) Non-traditional agro processing (excluding sugar refining, rice milling and chicken farming);
(ii) information and communications technology (excluding retail and distribution);
(iii) petroleum exploration, extraction, or refining;
(iv) mineral exploration, extraction, or refining;
(viii) tourist hotels or eco-tourist hotels;.
The Explanatory Memorandum that accompanied this 2003 Amendment stated the following:
“Clause 21 amends the Income Tax (In Aid of Industry) Act Cap. 81:01, to modify the tax holiday provisions of that Act. The amendments limit the exemption from corporate tax to new firms that create new employment in the specified depressed regions, and to firms that conduct new economic activity in the specified fields. The revisions to existing law are intended to aim that the benefits of a tax holiday more specifically at areas of economic activity the government has determined as a matter of policy should be encouraged.”
It has always been, and continues to be, Government’s intention to treat with pioneer industries that create employment regardless of location, and large investments in identified regions regardless of the sector of investment. The current articulation in the law is not exhaustive with respect to the policy areas that the Government is seeking to encourage investment and employment via tax holidays.
Government considers that the two Sanata projects earmarked for tax holidays deserve to be granted tax holidays as these activities are currently not performed in Guyana and represent new pioneer projects of a developmental and risk taking nature with employment and investment benefits to Guyana. These projects will see the establishment of significant value-added manufacturing operations in Guyana, specifically in the areas of denim textile production and antibiotic manufacturing, and include a joint venture with international partners.
Furthermore, Government has noted that the 2003 Amendment to Section 2 of the Income Tax (In Aid of Industry) Act contains a number of obvious deficiencies including:
* With respect to regions, specifically in section 21, paragraph (1)(a), subparagraphs (iv) (v), and (vi) are omitted [see above extract];
* With respect to economic sectors, specifically in section 21, paragraph (1)(b), subparagraphs (v) (vi) and (vii) are omitted [see above extract].
* Incorrect description and omission of regions, in section 21, paragraph (1)(a)(ii), Region 8 is described as Cuyuni-Mazaruni, which geographical description actually corresponds with Region 7, while Region 7 is omitted from the list [see above extract].
The current Fiscal Enactments (Amendment) Act 2003, therefore, contains various inaccuracies and omissions in relation to both the sectors and regions identified. It was Government’s intent when the Act was amended in 2003 to maintain the element of pioneer industries. While the law sought to make this specific in terms of geography and sector, on both scores the law contains omissions and inaccuracies, and the lists articulated in the Act should have been illustrative and not exhaustive.
Additionally, the current wording in the law does not provide for tax holidays for infrastructure projects (eg. the Berbice Bridge tax concessions which had to be provided for via special legislation, and the upcoming Amaila Falls Hydro project which would also very likely require concessions similar to the Berbice Bridge).
On closer examination, the current Fiscal Enactments (Amendment) Act 2003 does not reflect Government’s intent when the said Bill was laid in Parliament. In this respect, Government will be moving to amend the law to clearly provide for all pioneering projects, infrastructure projects, and correct the list of regions eligible for tax holidays.
The rules in respect of taxes have been amended over the last five years to minimise discretion and to move towards a tax system based on defined principles and rules that are stated in law. When concessions are granted they must be in accordance with the law and are not discretionary. Indeed, it is because of this openness that persons can point out when matters appear to be inconsistent with policy and law.
Government has been open on its policies in respect of privatisation and taxation and has nothing to hide. Consistent with this commitment to be open and transparent, President Jagdeo has called on the Privatisation Unit to host a privatisation and tax workshop on all privatisations. This workshop will be held in association with the GRA and Go-Invest where the overall position on tax concessions and the law will be dealt with. This workshop is slated for July 9th.
Issued by: Ministry of Finance June 15th, 2008
Prime Minister lauds mutual relations with Russia
- Russian Federation observes “Day of Russia”
Prime Minister Samuel Hinds and Ambassador of the Russian Federation to Guyana Pavel Sergiev toasted the mutual relations existing between the two countries during the Federation’s “Day of Russia” celebration Thursday.
The celebration at the Russian Embassy was attended by Cabinet ministers and members of the Russian Federation, the Diplomatic Corps and Members of Parliament.
The Prime Minister, acting in the capacity of President, congratulated the Russian Federation on the occasion, noting that it is a day of reflection on the many achievements along the path to national development.
Mr. Hinds alluded to sustained economic growth, productivity and poverty reduction and unemployment which are the aspirations of both developed and developing countries.
“It is in this regard that I express the hope that as Russia continues to ascend in the ranks of the developed world, Guyana can count on its support in enhancing the North-South co-operation,” Mr. Hinds said.
He also acknowledged the assistance which Guyana has received and continues to receive through the benevolence of the Russian Government in support of Guyana’s development objectives.
The rising food prices phenomenon was highlighted by Mr. Hinds as one of the challenges to development. He said government has sought to implement measures to cushion these effects and it welcomes local and foreign investment in this endeavour.
“We are keen to attract investments in other traditional and non-traditional sectors, even as RUSAL has been the pioneer here of large investors from the Russian Federation, I hope, Excellency, that this would encourage more Russian businesses to invest in our country, given your country’s advancement in energy, fisheries, forestry, information technology, mining and tourism sectors which we ourselves would wish to further develop,” Hr Hinds said.
He praised the Russian Government’s appreciation of Guyana’s role in responding to climate change, noting that it is an issue of national interest on which the two countries have collaborated. In this regard, he expressed hope that future collaboration can lead to a post-Kyoto framework.
Russia’s existing relationship with Guyana is a foreign relations policy which Ambassador Sergiev said the Russian Federation intends to establish with all countries to overcome the many world challenges.
“It is only with joint effort that we can cope with the threats of the twenty-first century, namely international terrorism, proliferation and weapons of mass destruction, regional conflict, narco-traffic, dissemination of HIV/AIDS,” Ambassador Sergiev said.
He added that Russia’s relations with Guyana have a rich history underscored by joint Russia-Guyana operations in the bauxite industry with the participation of RUSAL.
“Today we can surely say it’s the first but not the last example of mutually beneficial cooperation, which both parties are eager to strengthen and expand on,” the Russian Ambassador said,
Compliments Food for the Poor Guyana Inc.
25 households relocated to Hope Estate
Some 25 households from Joe Hook and Grass Hook recently received new homes in the Hope Coconut Estate, East Coast Demerara compliments of Food for the Poor Guyana Inc.
The homes constructed by Food for the Poor Guyana Inc. cost some $ 16.5 M and are part of the organisation’s wider plan to build 40 houses for the relocated residents from the upper reaches of the Mahaica River, where flooding is experienced.
The Ministry of Housing provided the lands for the residents.
Executive Director of the charity organisation, Mr. Leon Davis, speaking at the commissioning ceremony at the new housing scheme in the estate said the sanitary blocks for some of the houses are yet to be completed but this will be done soon.
He lauded the contractors of the project for completing the buildings within the agreed timeframe and urged grateful residents to make good use of the structures.
Mr. Davis also promised the residents that very soon they will be supplied with farming implements and seeds to assist in their return to normalcy.
Also present at the occasion were Agriculture Minister Robert Persaud; National Agriculture Research Institute (NARI) Director Dr. Oudu Homenauth; Guyana Rice Development Board (GRDB) General Manager Mr. Jagnarine Singh; New Guyana Marketing Corporation General Manager Mr. Nizam Hassan and acting National Drainage and Irrigation Authority (NDIA) Chief Executive Officer (CEO) Mr. Lionel Wordsworth.
Persaud recalled that on a visit to the communities last year, residents were urged to accelerate the relocation exercise and his ministry later provided transportation to facilitate the process.
He expressed gratitude to Mr. Davis who responded positively to his call for assistance to the villagers who were promised house lots at the estate in 2005 by President Bharrat Jagdeo, following persistent flooding in their communities.
Persaud lauded too his colleague Minister with Housing responsibilities, Mr. Harry Narine Nawbatt, for his role in developing the housing scheme.
Speaking of the estate, the minister pointed out that over the past decade its fortunes were at a stand still but over the years concerted efforts have been made to solicit both private and public sectors initiatives to aid its revitalisation.
He explained that this was done not only to resuscitate its coconut potential, but to venture into crops, livestock and aqua-culture farming. This transformation, he acknowledged, was met with some success.
However, he disclosed that his ministry in a renewed effort to encourage economic activities among farmers and residents of the estate, has granted them five acres of lands each to cultivate.
Apart from that, Persaud said, his ministry has been wooing investors and several have indicated their interest.
“ In fact, during the recently concluded Regional Agriculture Investment Forum, several investors visited this location and we have had confirmation from at lease one interest in having a state of the art or commercial type farm in this area, working with the farmers who live here,” he told the newly relocated residents.
The ministry, over the years, has also been investing in drainage and irrigation and has provided close to 100 acres of lands for cattle farmers to promote dairy development in the area.
With these developments at hand, Persaud expressed optimism that through the influx of the new residents, agriculture in the community will be rapidly transformed.
He said too that while the new residents will continue to retain their farming plots at Joe Hook and Grass Hook, and have the option of farming there, his ministry is looking to providing lands within the scheme for them to farm.
Dr Homenauth, who also a member of the estate’s management, pledged his commitment to working with various agencies to assist the relocated farmers in continuing their livelihoods and said he is looking at avenues to create job opportunities at their new location.
“This area is ripe, it is very suitable and accessible and in fact, it is what I consider an agriculture gold mine if we can get the necessary investments and the farmers who are here to capitalise on this opportunity,” he declared.
He said a new board to manage the estate will soon be installed and will be responsible for the revitalisation drive.
Meanwhile, Grass Hook resident Rohani Gopaul expressed appreciation to all the players who made the initiative possible and remarked, “It is the dawn of a new beginning,”
Sherine Looknaught, also a Grass Hook resident, said the project is an escape from the persistent flooding residents of her community and Joe Hook had experienced in the past five years. Other residents expressed similar sentiments.
Commemorative Magazine on Enmore Martyrs
THE Ministry of Culture, Youth and Sport, as part of the commemoration activities of the 60th anniversary of the Enmore Martyrs, will be doing a special magazine on this very significant and historic event in Guyana’s history.
Edited by former President Mrs. Janet Jagan, the magazine contains articles by a number of prominent scholars. These articles depicts the historic perspective of the Enmore Martyrs, analysis of that event and some of the impact that incident made on Guyanese life.
Minister of Culture, Youth and Sport Dr. Frank Anthony told the Guyana Chronicle that the magazine will be released at the end of the month.