SOME 68,000 persons will not be subject to income tax as the threshold has been increased to $55,000 following the passing of the Income Tax Amendment Bill by the National Assembly last evening.

The bill was presented in three parts by Minister of Finance Winston Jordan and it addressed the Income Tax threshold, the principal act as regards artistes and their ability to pay or benefit from waivers of the relevant taxes and the excess taxes paid to taxpayers as refunds.

Minister Jordan told the National Assembly that the threshold would move from $600,000 to $660,000 per annum, mathematically, resulting in the figures adjusting upward from $50,000 to $55,000 monthly.
He described the move as a step in the right direction, adding that any benefits to workers are a benefit earned and according to him, that should be applauded.
“As growth in the economy occurs, in revenue-collection, all other measures in relation to benefits to workers will be under consideration,” he noted. He said the move will benefit an additional 68,000 workers who will not be subject to Income Tax.
Opposition Member of Parliament (MP), Irfaan Ali proposed that the government increase the threshold to reflect a $75,000 figure which he deemed sustainable.
Jordan said that as Minister of Finance, who is entrusted with managing the country’s resources, he had to examine all considerations, including the country’s resources.
“We are trending in the right direction,” he said, noting that the year 2012 was the last occasion a similar move was carried out, when the former administration moved to change the threshold.
He said that as a new government, barely nine months in office, the government was able to carry out this change in the threshold, noting that it is in keeping with a growing economy.
As regards the second aspect of the bill, he said that the move made by passing the legislation was one that removed the discretionary powers for concessions for artistes from the Minister of Tourism.
“The interest here is promoting tourism,” Jordan said. He said the new government met a regime whereby the subject minister granted from time to time exemptions including Value Added Tax (VAT) to events, including major events. These were granted as a method of encouraging tourism and entertainment tourism,” he said, noting that “Except that again, it depended on the minister, clearly if it has a dependence of a minister then not everyone will feel comfortable.”

WIDE CONSIDERATION
The intent of the bill he said is to give wider consideration to artistes.
“If a promoter wants to bring an artiste, once they can get the go-ahead, the Commissioner General (of the Guyana Revenue Authority) will be empowered to exempt the income of that artiste from taxation,” Jordan explained.
As regards refunds, Jordan said that it is an issue which has been faced by many persons, who after submitting taxes and filing returns, when due a refund, same is hard to collect.
“This allows the commissioner-general in law now to apply a particular refund to any outstanding tax, penalty of such like that a taxpayer may have,” he said.
Ali noted that while Minister Jordan spoke of less discretion being granted by the subject minister regarding the concessions to artistes, as well as on the subject of tax refunds, the situation would be the opposite. However, Jordan noted that this was not the case, noting that as in the case of the artistes, there will be guidelines or structures.
“Someone has to administer the law, there is no discretion once the guidelines are published and they are clear,” Minister Jordan noted.
Meanwhile, the National Assembly also passed the Firearms Amendment Bill 2016 which paves the way for increases in firearm licensing fee from the processing to the approval stage.

The bill, which saw an amendment proposed by the opposition being put down by the House by votes, was debated by both sides, with Minister of Public Security Khemraj Ramjattan noting that the increases will relieve the burden on the process, which he described as a three-tiered one.

He said that includes the application for licence, following which the police commander for the respective division will then assign a police rank to check on the applicant’s character.

The report will then be sent to the office of the police commissioner to ensure the applicant’s antecedents are in order.

The final stage entails approval being supported by the firearm licensing board.  This board, he said, comprises civilians.

The opposition called for the Bill to be reconsidered, with PPP Member of Parliament Dharamkumar Seeraj speaking about its effects on farmers and hunters.

Another PPP MP Clement Rohee referred to the increase as the government being on a “fund-raising” mission by increasing the fees.

PPP PROPOSALS

However, Minister Ramjattan argued that the former PPP administration already had in place proposals to increase fees on firearms, something he had mentioned during the budget debate.

He said his work was therefore “made easier” following that process which was carried out under the former administration. A document to this effect which was seen by this newspaper spelt out the Cabinet decision of the former government.

Signed by former Cabinet Secretary, Dr Roger Luncheon in November 2012, the document states that the Cabinet considered and proposed increases which were submitted by former Home Affairs Minister Clement Rohee.

It outlined the increases for shotguns ($5000), handguns ($20,000), rifles ($25,000) and firearms/ammunition dealers (all categories -$30,000).