THE 2017 National Budget is receiving mixed reviews, including non-support from persons who would have normally defended the government’s position. What comes through clearly is a greater reliance on taxing the people more. When real wages are already depressed, poverty prevalent, and unemployment high, citizens/workers will understandably be upset with government in placing greater reliance on garnering revenue by taxing them more.
Putting VAT on water and electricity, in spite of the quality of and access to these services, has angered the masses, with justification. If it is the government’s intent to bring about conservation and optimum realisation of these products through changed behaviours, it did not communicate that. The budget failed to say what role government will play in assisting or redirecting changed behaviour outside of the punitive tax.
It would have helped had government started a public awareness programme to re-educate citizens of the need for conservation, and secondly, put in place technical support to help track and manage consumption, with the goal of staying within the non-taxable range. It needs to be noted that vat is paid on the total amount once the maximum non-taxable is surpassed. Example $10,000.00 per month is vat free. $10100.00 attracts 14% vat from the first $1.00.
Talks about conservation over the years have been absent of any sustained programme of helping citizens tracking the equipment and appliances of high consumption, the periods when they use more of these utilities, and rewarding reduced consumption with credits, even though these have proven to be great incentives in achieving the objective.
If we are talking about changing behaviour, it must be across the board, and applicable to government officials, given that the taxpayers are paying their bills. Government officials who occupy State residency or the State is paying their bills where they occupy, must be subject to paying their utilities bills once they attract vat.
The issue of PAYE continues to be a bugbear and the new percentage in the budget deserves further deliberations. Guyana needs an indigenous, Comprehensive Tax Reform. A report was done by a committee established by Minister Jordan and delivered to him. The public and stakeholders need to know the recommendations in the report, which must also be tabled in the National Assembly.
This budget is conflicting in focus and direction. Though we are no longer in a Structural Adjustment Programme, the measures being applied by Finance Minister Winston Jordan are that of the International Monetary Fund/World Bank dictates. On the other hand, the budget is speaking to a Green Economy. It cannot be both economic approaches given that their policies, objectives, and programmes are vastly different.
In addressing a green agenda, the philosophy, that is, Sustainable Development, Environment and Labour Policies — pillars on which a green economy is built — was not adumbrated, which means that reliance and materialisation will be problematic. Evidently clear was the absence of the Labour Policies. For any economy to work it cannot happen without the workers. As a trade unionist and given the government’s treatment of Labour thus far, I am inclined to suspect the workers’ rights and Rule of Law safeguarding them will continue to be trampled. The Government is being reminded that the Economic Partnership Agreement between the European Union and CARIFORUM requires respecting and upholding these core policies.
The comment given to the creation of jobs is noted, which in itself acknowledges the responsibility of government to lead the way in putting the people to work. This attention must not be an attempt to appease society, but must see a policy of creating employment. The bonus for public employees cannot be fiddled with. While it was started under the Bharrat Jagdeo government, it is a condition of employment. Though the trade unions and government may not have negotiated it, the government cannot arbitrarily deny the workers of it. For there to be termination of this benefit, the unions and government have to agree. Should the Government act contrarily, the trade unions are urged to take this issue to the International Labour Organisation and have the Government cited.
Our elders continue to be denied their due reward. Taking credit that within the last 18 months Old Age pension has increased by 45 percent, in the absence of stating subsidies on electricity and water have been taken away, this increase has not alleviated the deprivation of those who have given most of their lives to this nation’s development.
The Government needs to rethink and revisit this budget over the next week. There exist many concerns that can form disincentives for the worker, self-employed, employer, retired, and unemployed. Gone are the days when it could be felt that people will grumble or resist only for a while, forget, and move one.
Fidel Castro
Castro’s ashes will today be interred. He made an indelible mark in world politics. The developing world and oppressed in developed societies have positively benefitted from his life’s work. At age 32, he shook the developed world when he took the reins of government from their ally, Fulgencio Batista. He is called hero by the masses in Cuba who prior to 1959 felt oppressed. His became an icon for those fighting for political independence and other forms of liberation.
In the Liberation Struggle, he contributed significantly to Southern Africa. The citizens/workers of Guyana have benefitted in several ways from his friendship such as scholarships and through exchange programmes. What universally will never be forgotten is that he successfully defied 11 United States presidents; a country considered the world’s most powerful nation. Fidel will be missed, but his legacy lives on for present and future generations to review and build on.