THE present tax system is highly inequitable and unjust.The PPP/C reform of the tax system came to a drastic halt after the passage of the VAT and Excise tax legislation and the windfall it provided. PPP pledges to complete the reforms have proved to be insincere. The overall tax burden in Guyana is considerable. The ratio of central government revenue to GDP is the highest in the Caribbean.The APNU+AFC will:
* Commission a comprehensive review of current taxation systems and policies, including the value-added tax, to identify and recommend fiscal innovations that would not only address the adverse consequence of the current structure of taxation, including hardship effects, but would create incentives that could attract needed investment in critical sectors of the economy.
o Implement tax relief proposals with five main features: First: emphasis on consultation; Second: phased implementation; Third: equity and justice (interpersonal, across regions and sectors); Fourth: ease of implementation; and Fifth: establishment of a Tax Commission and rejection of the narrow technocratic approaches to tax reform.
* At the same time, there would be stricter enforcement and more efficient administration, including broadening the net of coverage and a careful review of exemptions.
* Reduce the Value-Added Tax within the first term as part of the Taxation Reform Programme;
* Increase Personal Income Tax threshold to $100,000 in a phased approach;
* Reduce the toll for passenger vehicles on the Berbice Harbour Bridge, eventually to $500;
* Rationalise the VAT and excise duties on motor vehicles and on diesel so as to encourage the use and importation of energy efficient vehicles and equipment, promoting fuel efficiency, ensuring appropriate equipment choice and rational importation policy as regards vehicle age, maintenance costs and the costs of related spares.