–private sector urges Gov’t

THE Private Sector Commission (PSC) on Thursday called on the APNU+AFC administration to adopt several fiscal measures to ensure that citizens live comfortably.
Among the measures suggested for adoption is the increase in the income tax threshold to $100,000 per month; a permanent reduction of the Corporate Income Tax rate, over 10 years to 20 per cent; a reduction of personal Income Tax over 10 years to 20 per cent; concessions on income taxation for the creation of new employment in all value-added sectors and tax breaks for new tourism assets.

The PSC in a statement to the media said that the country’s economy is under- performing and the slowdown began some two years ago. Notwithstanding the fact that the Gross Domestic Product (GDP) is expected to reach four per cent in 2016, due to an increase in gold production, the PSC believes that the decline in other economic sectors has far-reaching consequences for the business sector.
“One manifestation of this is the significant growth of non-performing loans in the commercial banking sector. The International Monetary Fund has reported that non-performing loans increased to 11.5 per cent at the end of December 2015 as compared to six per cent at the end of 2013. The challenge for Government, with the collaboration of the private sector, is to stimulate economic activity across all sectors.”
As such, the PSC believes that there is a multiplicity of measures available to stimulate the economy which can also lead to balanced growth, as well as a positive impact on Government revenue in the medium and long term.

The private sector body believes that there is need for tax breaks for companies which set up operations in depressed communities; concessions on export tax for businesses which export; relief on outstanding loans for the rice industry, security equipment to be tax-free, an increase in the income tax threshold to $100,000 per month and for all overtime earnings to be tax-free.
Additionally, it is believed that there needs to be the enforcement of tax laws and the PSC identified compulsory VAT registration and the enforcement of VAT collection on all businesses that do not collect VAT.

INFRASTRUCTURAL PROJECTS
Moreover, the PSC wants to see the implementation of all PSC-supported infrastructural projects, the urgent approval of a harbour finance model, the speedy implementation of all Government projects to release Government spending, the beginning of the design and building of the Lethem road for completion over a five-year period and the increase in capital on the international market with tolls being used over 25 years to repay loans.
That aside, the PSC believes that Government needs to implement plans for an alternative East Bank road, dredge the Demerara Harbour and build an alternative Demerara Harbour Bridge.
In the energy sector, the body wants to see the process of ensuring reliable energy is provided at US 12 cents per KWH, while in the legislative arena it calls for the appointment of an Economic Council for Guyana, legislate for a separate non-political Council, internal audit departments in all Government agencies, enact mergers and acquisitions legislation, introduce bankruptcy-protection legislation, finalise and table an E-Transactions Bill, and revise the Small Business Act, and the definition of small business to be changed to those with a turnover of $100M or more.

Several miscellaneous measures were also proposed and include the targeting of a GDP growth rate of 8 per cent, inflation rate of 2 per cent and unemployment rate of 8 per cent.
The PSC wants Government to retain the system of zero-rating for selected goods for relief of lower-income persons, sponsor workshops on corporate governance of state-owned enterprises, contractors should be graded in tiers related to their past performance, there should be a revision of trading rules to introduce an odd lot system, outline a statement on economic strategy or plan for Guyana, devise and implement a plan for the industrialisation of Guyana and reduce the purchase of Treasury Bills by 20 per cent from prior year to increase liquidity and reduce commercial bank interest rates.

Additionally, the PSC also called on Government to liberalise the telecommunications sector, implement regulations and enforce the new Act while allocating spectrum. The National Solid Waste Management ought to be regularized, while Government should also complete membership of the Extractive Industries Transparency Initiative, utilise Guyana Geology and Mines Commission funds to set up the Sovereign Wealth Fund and finalise the single- window system.
In addition, the PSC wants the APNU+AFC administration to host an investors’ conference, increase spending on marketing of Guyana, especially for tourism, improve Emergency Response and 911 systems, fund and operationalize the Procurement Commission,the Integrity Commission, uphold its manifesto promise of increased salaries for public servants, implement an enabling environment to improve ranking on the Doing Business Index and outline plans for diversification of the economy away from its traditional pillars of rice, sugar and gold.