PPP/C’s criticism of amnesty on taxes

ON Monday, the People’s Progressive Party/Civic (PPP/C) hosted a press conference after Minister of Finance Winston Jordan’s reading of the 2018 National Budget, which was not unexpected, given the role of the opposition in governance.

Being in the opposition the sense is given at times that the word is taken literally and figuratively. Saying this does not ignore the importance of the watchdog and checks-and-balances role of the opposition, where government can be criticised and should subject itself to criticisms. What is dangerous however, is when there is opposition not based on merit but merely for opposition sake.

The PPP/C’s criticisms of the waiver of interest and penalties for companies and individuals should they pay taxes within a specific period can duly be ascribed as such. Government has said that there will be an amnesty from January 1, 2018 through September 30, 2018. Those who file and pay all principal taxes on or before June 30, 2017 will have all interest and penalties waived, while those who do so between July 1, 2018 and September 30, 2018 will have 50 percent of interest and penalties waived.

The PPP/C’s response to this is that of questioning government’s sincerity, asking “Why now? Why this year? Why not from the very beginning of their term?” Ours is a society where there is high delinquency in paying taxes, which the PPP/C experienced during its 23 years in government. Georgetown Mayor and City Council, other local authorities, and the Guyana Revenue Authority have been in the news complaining about non-remittance of taxes.

The City Council, including during the PPP/C’s government, held several amnesty programmes to garner outstanding revenue and it has been to its benefit. The culture of wanting government– local, regional and national– to provide services and quality at that without having to pay for them through some form of taxation is known. Guyanese love what we call ‘freeness.’

Freeness has its limitations and consequences because non-payment of taxes hinders revenue and where shortfalls exist, it hinders provision of services, including expansion and good quality. This is a culture that has to be broken. The utilisation of the laws, including coaching changed behaviour through amnesty and education of the importance in honouring obligations cannot hurt the developmental process.

Admittedly, government is implementing the waiver three years into its term. However, where the PPP/C finds objection and sees something sinister, the flip side is it is better late than never. The truth is non-payment may also be informed by inability to or absence of desire to pay interest and penalties. Waiving these become incentives to pay. That as President Mr. Jagdeo may not have believed wisdom resides in the amnesty approach or the success of City Hall’s utilisation worthy of emulation lays no merit in decrying another government for wanting to give it a try.

Revenue collection is important for funding government’s projects, its provision of services and being able to pay its bills such as salaries and loans. It is even more important now that government has been moving to establish the formal economy as pre-eminent. The underworld economy which, according to Professor Clive Thomas, was between 40-60 percent of the economy has under this government seen stringent measures being put in place resulting in retreat or going further underground, resulting in corresponding impact on money flow and the true measurement of the formal economy. Ridding society of this scourge will not be easy and requires every Guyanese not only being vigilant, but also helping to return Guyana to the path where this crime is isolated.

Businesses that are engaged in legitimate trade would not be unmindful of paying their dues, given that they rely on government to provide proper services via a modernised Customs Unit, roads and bridges to transport products, reliable electricity and water supply to ensure production and make profits, to name some. There is an intertwined relationship between businesses and government and government and individuals.

These factors and impact the PPP/C would well be aware of. Therefore, it is not unreasonable, as efforts are being made to eliminate dirty money and return the economy to measuring growth based on legitimacy, fellow citizens would want to count on the PPP/C’s support, not expect opposition. Seeking political mileage by condemning what would benefit all is counterproductive.

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