Cathy: VAT on internet data necessary – Gov’t seeks to roll out transformational initiatives
Minister of Public Telecommunications, Cathy Hughes, makes a point during her presentation before the National Assembly on Wednesday
Minister of Public Telecommunications, Cathy Hughes, makes a point during her presentation before the National Assembly on Wednesday

– Reliable internet service for 600 gov’t buildings
– ICT hubs for several Amerindian communities
– Centre of Excellence in IT to be opened next year

WITH $1.58B budgeted for investment in government’s E-governance initiatives, Minister of Public Telecommunications Cathy Hughes on Wednesday said that the proposed implementation of taxes on internet service is necessary. “VAT on data has also received harsh criticisms, but I want to remind us all that there is a necessary revenue stream, given the range of transformational measures…,” she said, noting that in the long-run with the new liberalised environment, the sector will see more competition.
“I expect to see our high cost of internet access when compared to other parts of the Caribbean reduced in time,” said Hughes, amidst shouts of “what about quality internet?” from opposition members.
According to the minister, citizens will be able to benefit from free internet access at several ICT hubs across the country. Last week, GTT’s Chief Executive Officer (CEO) Justin Nedd described the budget as “less business- friendly” than previous ones.
Nedd said some tax measures as indicated by Finance Minister Winston Jordan will allow for increased rates and noted that “businesses cannot absorb that increase, which will inevitably be passed to some consumers.”
He argued that if VAT is placed on data, whether broadband, Internet, mobile phone or for corporate customers, there would be an increase of US$6M per year for the current services.
“I would like to say US$6M that would have to be passed to the customers which would stymie demand for services and create a negative cycle – how much we are able to invest in growth—we are well aware of the demands for increased Internet speeds and that negative cycle will only reduce the ability of the company to grow.”
Meanwhile, Hughes noted that $114M has been allocated for the provision of proper internet access to over 600 government buildings across the country.
These public internet access points she said, will increase the opportunities and channels through which thousands of Guyanese would be able to access online resources and this is in keeping with the government’s aim to bridge the digital divide and to improve interconnection and association with government.
Hughes disclosed that key to the initiative is the transformation of strategically located post offices into “comfortable, refurbished ICT hubs, which would provide citizens and especially pensioners and opportunity to visit these hubs to also access free of charge related government services.”
She said all post offices within the reach of e-government network s,especially those located in communities considered “digitally excluded”; communities such as Lethem, Linden, Mahdia, Port Kaituma, Bartica, and Mabaruma will all become community ICT hubs.
The sum of $90M will be used to provide ICT access for the hinterland regions as well as for far and remote areas across Guyana and the Minister of Public Telecommunications told the House that there is a plan to expand the reach of government services to the hinterland; community ICT hubs will be established in Annai, Lethem, Waramadong, Paramakatoi, Aishalton, St Cuthbert’s Mission, Bartica, Mabaruma, and Kwakwani, and other areas.
“The aim …is to improve the livelihood of persons and to reduce the digital divide that exists between the coast and the hinterland, the haves and the have nots.”
Additionally, another 30 pilot community ICT hubs serving approximately 60,000 residents will be established in Regions Two, Four, Five and Six, while Regions One, Seven, Eight, Nine and 10 are being considered for similar development.
These hubs are expected to provide residents with access to information and services with an estimated $30M being allocated for the projects.
“All of this would be accommodated through the e-government network; therefore, maintaining and expanding the reach of this network is of critical importance,” said Minister Hughes. Another $435M has been allocated for this activity, while $70M was budgeted for the expansion of the network into unserved areas including Timehri, Amelia’s ward, and Diamond, among other locations.
That aside, Hughes announced that $50M has been allocated to ensure cyber security of government’s network and $275M for the maintenance and technical support services that are going to be required. A further $674M has been allocated towards the provision of connectivity and internet access to over 140 Government locations already connected to the e-government network.
Additionally, with all the advances scheduled to take place in the ICT sector, emphasis is being placed on the boosting of ICT human capacity and as such, $160M will be spent on the delivery of specialised ICT training in collaboration with the Government of India. The training will be done at the Centre of Excellence in Information Technology.
“The fully renovated, refurbished and adequately equipped centre will be opened in 2017 and will focus on the training of the trainers’ programme- basic and advanced areas of ICT specialisation,” Minister Hughes added.
Moreover, the minister said the highlight of government’s transformational strategy is the implementation in a phased manner a safe city, smart city programme called “Smart Guyana.”
“Imagine an ICT-driven programme integrating all sectors, services into one cohesive whole. A safe- city model that is already being implemented by the Ministry of Public Security that uses technology, cameras on street corners, a command centre monitored 24/7 and new communication tools that would ensure that if you do the crime, you will do the time.
“No matter which side of the political fence you may be, most should accept that never before have we solved so many crimes in a short space of time in Guyana.”
Hughes noted that the Smart City concept builds on our efforts to bring up-to- date technology to government services, to teaching, to taking a doctor through skype or another form of technology to remote villages.
“Can we do it? Yes, we can!” she declared as her government colleagues hit their hands against the desks in full agreement.

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