CHANGE Guyana has promised to create an effective tax policy, which will promote economic growth by stimulating investments that will result in the creation of sustainable jobs and income.

The political party, which is considered the new kid on the block, believes that it could implement such a policy once it is elected to office at the March 2, 2020 General and Regional Elections.

Its leader, Robert Badal believes that an effective tax policy should encourage investments in physical infrastructure of roads, buildings, telecommunications and IT infrastructure, medical care, education, and agriculture.

“Excessively high taxation has been a feature and consequence of large governments under the PPP and Coalition governments over the past three decades…over that period government transferred hard earned income from the Guyanese people to government coffers with not much to show in terms of development,” said Presidential Candidate of Change Guyana, Robert Badal during a press briefing at the Pegasus Hotel, on Tuesday.
In referring to the statistics of the income from taxation over the years, Badal said in 2014 the government took in $145 billion, while in 2018 that figure went to $216 billion and is expected to reach $239 billion this year.

“Even with the more than 60 per cent increase in tax collection, there has been no attempt by the government to relieve taxpayers of the burden of excessive taxation. In fact, some 200 new taxes were introduced including on education, water and electricity,” Badal lamented.
He said Change Guyana is prepared to address this and even provide tax shelters for the low-income earners so that they could receive better incomes. The political party is also prepared to give all workers control over what they earn by raising the tax threshold to $100,000.

“At the business level, we pay Corporate Tax of between 27-40 per cent, Vat of 14 per cent, customs duty of 10-20 per cent, and withholding taxes of 10-20 per cent on professional services that introduced technologies not available in Guyana, property taxes, among others,” said Badal.

Change Guyana stated that it is committed to reducing those taxes and believes that a reduction will stimulate accelerated economic growth by promoting investments by the private sector in key development areas.

Prime Ministerial Candidate of Change Guyana, Nigel Hinds said the party also intends to reduce the taxes paid on vehicles. “We will also remove import taxes on farming, mining, oil, construction and fishing to increase employment, and value-added products for exports. Tax on electricity and water will also be removed,” said Hinds.
When asked if the tax measures will affect government expenditure, Hinds said the measures will not affect the financing of government operations as the increase spending in the economy would ignite an economic transformation of the economy.