— Indar says Dr. Ali-led administration ‘pumping blood’ into economy
— Trotman commends gov’t for assistance to mining, forestry sectors

By Navendra Seoraj
GUYANA was diagnosed with “anemia” by Minister within the Ministry of Public Works, Deodat Indar, who, though not being a doctor, made the diagnosis because he believes that the “country’s” blood was drained by the former APNU+AFC administration, through its “vampire strategy”.

In comparing the former government to the mythical blood-sucking creature, Minister Indar said: “the economic philosophy of the previous administration was tantamount to a vampire strategy, sucking blood out of the country.”
His comments created tension in the National Assembly during day one of the Budget 2020 debates.
Minister Indar’s remarks were directed at Opposition Member of Parliament (MP), Shurwayne Holder, who argued that government’s proposed $329.5 billion budget focuses mainly on private sector development and does not address the issues of the people.

Holder rode on the back of Opposition Front Bencher, Raphael Trotman, who “started the ball” by saying that the People’s Progressive Party/Civic (PPP/C) government inherited an economy which was described as the fastest growing in this hemisphere, if not the world.

In citing Guyana’s positive shift in global rankings and past economic performances, Trotman said: “Guyana, under the Granger-led administration, experienced five straight years of sustained economic growth, at an average of 3.6 per cent, with 5.4 per cent being the highest.”

“Ratings is one, but Guyana has lived through the villages…the country lives through its villages and at the village level there is mass job losses, depletion of basic necessities to operate and live,” said Minister Indar in response to Trotman.
He argued that the hospitals do not have drugs and the infrastructure in villages is “next to nothing.” This, he said, was compounded by the heavy tax measures imposed, not just on the ordinary people, but the private sector which is seen as the engine of growth in any economy.

“Them saying it is private sector and does not address the people shows the collective, misguided philosophy of the past administration…the private sector is the engine of growth so you have to make sure you do not strangle them…and over the past five years there was a strangulation of taxation that caused some of them to shut shop,” said Minister Indar.
The increased taxes, he said, was evidenced by the increase revenue intake by government. In 2014, revenue intake by the PPP/C administration was $135 billion, and at the end of 2019, after four years of management by the coalition government, $226 billion was raked in through taxation.

SQUANDERMANIA
“Where did the extra $91B come from? It came from pockets of poor Guyanese…every single Guyanese became poorer because $91B was taken from them all, to furnish and help a lifestyle of squandermania,” Minister Indar lamented.
The new government, while in opposition, had said that the former administration extracted some $300 billion more in additional taxes over the past five years. Some persons even argued that tax measures, instituted by the past administration, were cumbersome.

Additional taxes included Value Added Tax (VAT) on utilities and reducing the list of zero-rated items. In economics, zero-rated supply refers to items subject to a 0 per cent VAT on their input supplies.

“The Dr. Ali-led administration saw hardship measures and we are removing that,” said Minister Indar, adding that a number of reversals and removals of VAT and other taxes have already been announced by the new government.
In addressing specific areas, the minister said the previous policies to tax agro-chemicals and other agriculture and mining-related items, were like taxing development, so this is why the new government is removing them.
Government has already announced the removal of VAT on equipment for farmers and miners, a move which Indar believes will leave money in the pockets of those stakeholders.

“Any of you ever went into the backdam? It is toiling…got to be gang to gang, working from six in the morning to six in the night, so the dollars are hard earned…so by taxing these things, you are being cruel…the Ali-led administration already put in the estimates, to remove all VAT on ATVs, tractors and all farming and mining equipment,” said Minister Indar.

Government’s emergency measures introduced to assist the forestry and mining sectors were commended by Trotman.
“I want to sound a loud caution that while you incentivise miners to rush back to the backdam, you have to be mindful of the environmental impact to lands and the contiguous communities,” said the Opposition MP.
Trotman, who was Minister of Natural Resources under the APNU+AFC administration, advised the government to ensure that these measures receive periodic review.

Minister Indar assured that the Dr. Ali-led government will do everything to make life easy for every Guyanese.
He said the President’s economic philosophy is to drive industry; ensure there is infrastructure in housing, roads, bridges, ports and so on, as this is the vision of the PPP/C administration, to pump blood into the economy.