During the recent National Assembly budget debate, Prime Minister Sam Hinds reflected that the budget is structured for government to remain on course while being united for the purpose for realising prosperity for all. He cited the trend of positive growth and development achieved, averaging 4.4% over the last five years, in the adverse regional and international events is what underlines reasonableness in the calls to remain on course.
Advising against demands for change, only for the sake of change, the Prime Minister posited that the present tax structure favours low-income earners, and is a powerful instrument for income redistribution.
No income tax is payable on an income below a threshold that is continuously being raised by the administration, with the current ceiling being $50,000, said PM Hinds, adding that VAT, at 16% on all goods and services consumed, except those zero-rated on a list that is extended from time to time. He continued “…someone earning $50,000 per month or less in Guyana can live lawfully, paying zero tax – no income tax, no VAT….Someone earning a lot and consuming a lot more can be paying on a margin 33 and one-third plus 16 % – 49 and one-third percent”. Savings not being expended do not incur VAT.
All citizens have equal access to all services provided by government, irrespective of the quantity of taxes they pay, stressed the Prime Minister, and he listed some of the benefits provided to citizens through the various sectors, which is a powerful mechanism for income re-distribution.
Citing the preferential arrangements in the housing sector for low- income earners, the PM pointed out that the suggested changes by the opposition in the current tax structure will not provide any further relief for low-income earners, because the taxes are structured to impact on the incomes of the high-income earners, while providing relief to low income earners, which he noted is another means of income redistribution.
On the question of value for money, the Prime Minister observed that, although it is true that there is some amount of poor services provided at governmental institutions, such as hospitals, it is equally true that these instances are cited by the opposition without due heed being paid to the fact that, although there are shortcomings and areas for improvement, as was outlined by Dr. Mahadeo, the opposition chose selective incidents on which to expound, without mentioning the success stories.
In the education sector, for instance, he highlighted the many successes of teachers such as Wilfred Success of West Ruimveldt and M Persaud of Abram Zuil, who have taken education to an unparalleled level because of a commitment to their chosen profession and their charges. These popular teachers, he emphasised, received no greater pay or benefits than others; nor no greater facilities nor exceptional students to work with, yet they have achieved unprecedented success on a sustained basis in the performance of their students, professing “where they could, many others could. We all could, whether in teaching, or in health services or in whatever we do.”
Alluding to the opposition’s contentions on contractual arrangements disfavouring the Guyanese labour force, the PM refuted this, stating “Whenever there are options before this government to choose between various arrangements that have little difference, this government has never hesitated to be partial when a Guyanese option is on the table. We have always been biased where Guyanese workers, Guyanese contractors, Guyanese businesses; and in turn we demand that our workers, our contractors, our businesses owe it to us – to themselves and our country to do their best; and we are let down from time to time, but many more times our people deliver.”
Conceding that in instances of consumer need for services provided by workers in the public and health sectors, where these services are not adequately provided, PM Sam Hinds emphasised “…for whom do we work is a most important question, which all of us should ask, for we are all workers.” He urged that all workers should perform their duties conscientiously for their salaries and benefits and lamented the unwillingness to work for local employers whose resources may be constrained and who could not afford to pay astronomical salaries and provide great benefits. He refuted opposition contentions on the level of unemployment, noting that the many vacancies advertised prove otherwise, except that Guyanese do not want to work for what local employers can afford to pay them, preferring instead to remain unemployed and cry marginalisation, discrimination, and make any number of excuses for their slothfulness and refusal to engage in gainful employment.
“It is not a question of lack of job opportunity,” the Prime Minister argued, “but lack of people willing and able and prepared to work for their fellow Guyanese for earnings which their fellow Guyanese are able and willing to pay, and under the conditions which their fellow Guyanese can provide.
“And this is the position that, from the very beginning, under our late leader Dr. Jagan, that we always took – that we look to the Guyanese to work for their fellow Guyanese for the pay that they could afford, and with the means and the resources that they have.
“This is what distinguishes us in the PPP/C from the other two parties on the other side. This government has been biased for Guyanese. We consciously modified many of the programmes we inherited in 1992 to give more Guyanese workers, contractors and business persons a chance; so when workers, contractors and businesses fail we are very disappointed, but we don’t reverse our course. We don’t throw our hands up in the air, but we keep the faith and we seek to correct.”
Referring to the opening day speech by APNU/PNC’s Carl Greenidge, wherein he alluded to income redistribution, claiming that 20% of Guyanese earn 40% of the income or wealth, with the bottom 20% earning only 7%, the PM posited, as Minister Irfaan Ali did last Tuesday, that the irrefutable argument would be the implication that a middle 60% earn 53% or in excess, which makes this distribution of wealth one of the most even distributions of wealth among different countries and indicates a re-creation of a large middle-class in Guyana.
The Prime Minister also addressed Greenidge’s contentions on the subsidy projected for GPL, as well as a number of other issues, including PPP/C phenomenal successes in the turnaround of Linden and other communities, especially those vulnerable to many unfavourable anomalies.
He concluded his presentation by urging the opposition to be realistic and non-confrontational and to work with the government for the general good of all Guyanese.
Prime Minister Sam Hinds say Government keeps faith with the Guyanese people
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