FOLLOWING reports that domestic airlines have been allegedly exploiting consumers during this time of crisis, government has said it is prepared to cap domestic airfare and other “accrued” transportation fares which affect the public.

“We are prepared to examine any feasible proposal that would cap the fare and all other benefits accrued to the travelling public,” said Minister of Finance, Winston Jordan, during a recent interview with the Department of Public Information (DPI).

According to a DPI report, the minister made this comment in the wake of reports that many transportation providers have increased and sometimes doubled their prices despite a reduction in fuel prices and the removal of Value Added Tax (VAT) on local airfares.
According to several reports, many indigenous and hinterland residents are faced with rising transport costs from the usual providers.

“Air Services Limited, which operates three weekly flights to Paramakatoi, Region Eight, have increased their prices. For freight, the price has moved from $130 to $290/pound and return airfare from $33,000 per person to $68,000,” one report in a daily newspaper stated.

Minister Jordan indirectly condemned such actions, noting that despite the measures in place, many have not seen it fit to pass on savings to consumers.

He said the government is prepared to sit down with stakeholders and work with them, as far as feasible, during this time to bring relief to citizens.

In a recent interview with DPI, the minister reminded of measures implemented by the government to ease the financial burden, due to the COVID-19 Pandemic. These included removal of Value Added Tax (VAT) on local airfares, electricity as well as the reduction on fuel prices.

Guyana Chronicle had reported that to better assist persons who are socially and economically disadvantaged by the threat of the coronavirus (COVID-19) pandemic, the Guyana Revenue Authority (GRA) had implemented additional tax relief measures for Guyanese.

With effect from April 01, 2020 to June 30, 2020, Value Added Tax (VAT) on water and electricity has been removed, while VAT has also been removed from domestic air travel with effect from April 08, 2020 to June 30, 2020.

The additional measures come as Guyanese and representative bodies have been calling on the government to do more to address the needs of those challenged due to the nationwide lockdown.

Added to the measures above, refunds for businesses and PAYE refunds for employees will be expedited and there has been an extension of the April 30 deadline for the filing of tax returns, to June 30, 2020. “However, estimated remaining taxes using “management financial statements”, for the Year of Income 2019 (Year of Assessment 2020,) must be paid by April 30, 2020,” the GRA stated.

These measures will add to others previously in place such as the waiver of VAT and duties on COVID-19 medical supplies and lab testing kits; the granting of tax deductions for all donations made by local businesses to staff and health institutions for the treatment of the virus; the deferral of the payment of advance corporate and individual advance taxes for the year of assessment 2021 (Year of Income 2020) and PAYE for affected businesses until June 30, 2020 and affected businesses being able to pay advance taxes on the current yearly basis.

Meanwhile, some GRA workers have been operating from home with working employees being rotated on a weekly basis. The GRA is now closed every Friday and the entire building is fumigated so that persons returning to work on Monday come to a clean environment.

“Despite having employees working from home, the authority continues to provide essential services to the taxpaying public and at the same time, collect vital revenue necessary for the provision of services to the people of Guyana and is also fast tracking the provision of its services electronically including the submission of documents and payments,” the GRA stated.

Globally, there are over two million cases of COVID-19, with over 140,000 deaths. And, with no approved treatment or cure, there is no assurance that persons will survive after contracting the disease. In the absence of approved medication, governments and authorities across the world have employed a number of preventative measures to contain the spread of the disease.

Locally, the government had extended its emergency measures to combat the dreaded disease, with the imposition of a 12-hour curfew on citizens. These emergency measures were taken pursuant to paragraphs (1) and (2) (b) of the directions issued by the President, in accordance with the Public Health Ordinance, Cap. 145, and published in the Official Gazette, Legal Supplement B on March 16 2020.

The measures at reference took effect from April 3, 2020, and are expected to last for one month, unless earlier terminated, extended or amended by notice of the Minister of Public Health, after an assessment of the prevailing public health conditions.