WITH so much coverage in the media over the past several weeks about the imposition of 14 per cent VAT on private education, is there anything more to say? I think there is. At the very least, there are many unanswered questions. We are in the midst of Grade 6 assessments and the children of Guyana have to answer a host of questions. This letter is an attempt to pose some questions, not to children, but to Guyana’s decision-makers. This does not pretend to be a research study on the issues; rather, it is a summary of simple questions posed to about 30 of Guyana “leaders” in search of clear answers, re where they stand on this matter.
Some of the answers I received to the questions include the following:
Minister Ramjattan was very candid in stating that he supports the VAT saying simply that “the government has to raise money” as they have a significant deficit. I should have asked him what other sources of additional revenue the Cabinet considered and why they were rejected. Another omission on my part, as an inexperienced “reporter,” was the failure to ask for an explanation on their ‘about face’ on VAT on private health services, how much they had expected to collect from that source and how is the shortfall to be made up?

I then told him that already 10 per cent of our ABE students have dropped out of the course. He said he was “very sad to hear about that.”

By comparison, Marlon Williams, General-Secretary of the AFC?, was very clear that, in giving a personal not party response, that he was completely opposed to the 14 per cent VAT, saying, that “there should be no VAT on education…. the human capital in any country is its people, as such, there can be no such punitive tax on education. …… Guyana has fought for free education for almost 50 years and we simply cannot turn our back on it now.”

The Deputy Mayor of Georgetown, Lionel Jaikarran, said, “I sincerely think that the 14 per cent VAT on private education should be rescinded. We are a developing country and the  education of our young citizens is preeminent for our long-term growth and economic success.  I give kudos to our public school system; however, it’s a known fact that it is hard-pressed to keep up with the demand for higher quality educational services. I myself happen to have three children in the private school system and therefore I’m well aware of the sentiments of other parents that are in my position. While I’m cognizant and appreciative that our Government has to garner finances through taxation to run the country in an efficient manner, I do believe the private schools that are evading the tax net need to be brought into line and sanctioned, instead of the parents who choose to send their children to the above-mentioned institutions.
One of the leaders of the business community, Roy Beepat, said, “ On Behalf of the Giftland Group of companies, we urge the Government to repeal this tax on our students, apart from the marginal families who would have to drop their children from private education, somewhere inside there we may be depriving a future leader the opportunity to develop and achieve. This cannot be a better life for our people when it is so oppressively against our poor and aspiring, as the rich will not feel the effects of this tax. If the Government feels that there is unfairness in tax collections, do this against the offenders not the innocent. This single Tax can and may be the difference between being re-elected and not, as when the 15,000 petitioners go to the polls they will surely remember this.”

Christopher Ram shared the following in his interview, “As one who was “rescued” by private education offered by the privately owned Cambridge Academy which later became a victim of the failed no private education policy, I find the imposition of VAT on education to be disappointing, depressing and distressing at a national and personal level. I fear for the potential loss of opportunities for the children of poor parents across the country who might find that the VAT has stretched to breaking point their ability to find an additional 14% on a significant chunk of their meagre budget.

At the personal level, disappointed that a number of key political figures who privately claimed to oppose VAT on education could not convince their colleagues that the removal of the tax was not only the right thing to do, but the bright thing to do; disappointed at some of the uneducated excuses offered for the retention of the tax and the Government’s duplicity when compared with VAT on medical services; disappointed that the Education Minister from the WPA was unwilling to take a stand on an issue which he and his party have embraced even before its foundation; and most of all disappointed at President Granger, who before this fiasco, could properly lay claim to be Guyana’s first Education President. “
Another prominent businessman, Peter Bouchard, stated, “The figures are quite simple –  a $250 billion budget and $350 million expected revenue from private education VAT.   Apart from the fact that VAT is not a service tax, this revenue is a very small portion of the total budget. We all have to live within our means – in private life, in companies, in all walks of life.  If the Government has to wring blood from the stone of education to meet its target, then I strongly suggest it revisits its target, lest the blood of education in Guyana should dry up and cease to flow and our future so-called ”good life” should prove to be empty electioneering words, words which will never again be believed when it comes time to vote.”
A leading Educator from Trinidad, Ravi Ragoonath, simply observed, “It is truly an unfortunate time when Government opts to tax education.”

There were about 20 others that I invited to comment, including a number of Cabinet Ministers. It could be that the contact information for them was incorrect, or they were simply too busy, but there was no response.

In preparing this letter I decided to re-read all 1,500 comments that have been published on our ipetition (see: www.ipetitions.com/petition/education-vat-free). It makes fascinating reading. On February 24th the petition was delivered to the President & Ministers Jordan and Roopnaraine. There was no response until Gordon Mosley “reported” that the President was going to rescind the VAT decision. Two days later, after this mistake or “fake news” or change of position, it was reported that the President had “changed his decision.” We continued with the petition, more persons signed and again it was ignored. (To be continued)

Yours faithfully,
Dr Brian O’Toole
Director
School of the Nations