THE Opposition, People’s Progressive Party Civic (PPPC) has not only endorsed Government’s decision to reinstate tax-free overtime for bauxite workers but has called for similar concessions to be granted across the board.During the party’s weekly press conference at Freedom House, General Secretary, Clement Rohee said PPP supports any approach that will enhance the economic and financial wellbeing of the working class.
“The PPP is of the view that Tax-free overtime should be granted across the board without discrimination, and sugar workers should be no exception,” Rohee told reporters on Monday.
PPP’s call comes on the heels of Government’s announcement that workers in the bauxite industry will soon benefit from tax-free overtime.
In a meeting with the management of the Bauxite Company Guyana Inc. (RUSAL) last week, Minister of Social Protection, Volda Lawrence said it was a done deal, explaining that the Finance Minister Winston Jordan will soon make a pronouncement on the matter.
“This is a done deal, the workers will be given their tax exemptions on overtime,” Minister Lawrence had said.
Tax-free concession on overtime work was implemented in 1988. This concession was enjoyed by workers up until 2007 when it was arbitrarily taken away by the People’s Progressive Party (PPP) Administration. The move by the PPP Administration had adversely affected the earnings of bauxite workers from Linden and Kwakwani, and was seen as a punitive exercise for not supporting the PPP.
When the announcement was initially made in December, 2015, General Secretary of the Guyana Trade Union Congress (GTUC) Lincoln Lewis said the Government was moving in the right direction.
He explained that tax-free concessions were granted to bauxite workers in 1988 following an inquiry by Edgar Heyliger. Subsequently, he said, sugar workers benefited from the tax-free concessions.
“What that government did when it came to power was to take it away. The (Bharrat) Jagdeo Administration took it away from bauxite workers but it remained in the sugar industry,” Lewis contended. He too is of the opinion that the act by the then Government was a deliberate one.
Notwithstanding the past actions of the PPP on the tax-free overtime concession, Lewis said he was “encouraged” by government’s move to reinstate tax-free overtime to bauxite workers. “I would be happy if the government sees it fit that it remains in the sugar industry,” he added.
Asked if he believes other sectors should benefit from the same concession, the GTUC leader said given the current reform of the tax system, “we have to seek ways and means to make sure that people are not overtaxed regardless of what sector they are in.”
