In the same breath they say we should have had better growth in 2008. Get it? They are saying that even with the Global Economic Crisis, Guyana’s Economy could have expanded at over 3.1% (which is contrary to the previous point they made).

Then there is talk of the VAT at 16% being excessive. The 30% Consumption Tax had led to some businesses not paying their taxes to the tune of G$12.5B (ask Christopher Ram, ref: Ram Budget Analysis 2007 and 2008). It is these businesses that are now contributing under the VAT which accounted for the strong VAT takings in the previous two years.

This “excess” amount of VAT is not really an excess (some G$16B). It is just that people are paying what they should have paid under the 30% Consumption Tax.

Guyana is in no way a Heavily Indebted Poor Country (HIPC) anymore. Guyanese import over US$1350M per year and exports US$800M. Such high imports points to a country where there is wealth as much of this import is capital purchases (as industry is revamped), fuel (for electricity generation and transport) and consumer products (like cell phones, TV, computers, cars, etc).

In these times of contracting world economies it would be best to borrow domestically to finance capital projects (like a 50MW power station for Berbice), water treatment plants, fibre optics telecommunications, computerised systems, tractors, rice harvesters, water-to-electricity generation plant, cement, and other imported goods.

We should do this at this time as falling world economies create the situation whereby many manufacturing companies would seek to sell their products at a lesser price leading to savings for Guyana.
SEAN BRIGNANDAN