‘Let’s talk’
Private Sector Commission (PSC) Member, Ramesh Dookhoo
Private Sector Commission (PSC) Member, Ramesh Dookhoo

— Private sector wants discussion with government on impact of COVID-19
…proposes range of measures including tax cuts

THE Private Sector Commission (PSC) has made public a range of measures suggested to the National COVID-19 Task Force (NCTF) to “cushion” the economic effects of the coronavirus on Guyanese citizens, businesses and employees.

The recommendations were made by way of letter to Chairman of the NCTF, Prime Minister, Moses Nagamootoo, on March 25, 2020, back when Guyana reported five cases and one death. It was signed by PSC Chair, Captain Gerry Gouveia. “Amidst concerns of the global pandemic of the COVID-19, countries around the world are grappling with the effects and taking precautionary measures to deal with the crisis which it engenders,” the PSC stated.

A RANGE OF MEASURES

To cushion the effects to employees and citizens, the commission recommended an immediate raise in the threshold to accommodate no taxation for employees in vulnerable sectors that were sent off the job from 65,000 to 100,000. Added to this was the proposal to remove mortgage interests and payments for the period; temporarily remove the requirement to pay income and corporation taxes up front; reduce the excise taxes on fuel; extend the time to pay utility bills and hire purchase debts, and include emergency funding for small businesses at risk of closure.

It also recommended the removal of Value Added Tax (VAT) from all food items, detergents and all household and medical and other cleansers and essential services including data.

Specifically, to assist businesses, the PSC said that there is need for a 100 per cent deduction of taxes for items given to the national effort; rescheduling of loans and mortgages; a relaxing of overdraft facilities and of regulations to classify loan as non-performing.

Other measures which it said the NCTF could consider are liquidity support for banks – interest subsidy; filing of Income and Corporation Taxes until September 30, 2020 provided that the current COVID-19 situation is brought under control by then; loans and financing for businesses, administrative relief on statutory obligations and direct payment to citizens – unemployment payments or payroll subsidy.

For the health sector, the commission suggested a removal of taxes on personal protection equipment (masks, gowns, gloves etc.); allowing hospitals to bring in ventilators without taxes and allowing labs to bring in test kits and PCR machines without taxes.

The PSC also pointed to the need for measures for job creation; incentives for the promotion of the use of technology and tax measures to lower material cost for sanitisation and food.

Other measures include: that the Ministry of Finance consider offering the GBA a tax rebate in part of full for interest lost as a result of the banks lowering their interstates; a reduction in fuel prices by removing the tax component so that the public transportation can benefit also with a corresponding reduction on fares and that utility companies defer payments and/or reduce by 50 per cent.

LET’S TALK

Speaking with the Guyana Chronicle on Wednesday, PSC Member, Ramesh Dookhoo, said that the commission wishes to sit down with the NCTF to discuss the measures proposed.

He said that the recommendations were made over a month ago and there was no response, save for one from the Ministry of Finance questioning whether the commission had done its research prior to sending in the recommendations. Dookhoo said that the PSC is aware that some of the recommended measures have been put in place but more must be done — especially for small businesses— as they cannot survive for much longer on their financial reserves.

“We know that some of the things that are on that list have now been introduced but at least call us in, let us have a discussion, let us tell you what is going on in the business world,” he said. Dookhoo said that he is unsure that the questionnaire sent out by the Ministries of Business and Finance would have reached the desired population and the PSC is open to bridging any possible information gaps.

He said that the PSC is aware of the elections impasse which affects finances and believes that a discussion had with the NCTF/Ministry of Finance would go a far way in helping both the private sector and government to understand the challenges and possibilities at hand.

“We would really like to have this discussion with a wide cross section of the private sector people and the government,” he said.

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