Dr. Jagdeo says

GENERAL Secretary of the People’s Progressive Party (PPP), Dr. Bharrat Jagdeo, has said that the former APNU+AFC government “sucked the life” out of Guyanese businesses and caused the economy to plummet during its tenure.

Dr. Jagdeo, during a press conference on Thursday, responded to members of the APNU+AFC who attempted to mislead Guyanese and spread false information that the PPP government is making it difficult for citizens to establish their own businesses.

While explaining that it is indeed difficult for newcomers to start a business considering their lack of experience, he said that under the APNU+AFC government, it would have been harder because they burdened Guyanese with over 200 taxes.

“If it’s difficult now, it was near impossible under the APNU government…because they sucked the life out of not just the large businesses across Guyana…but they also made it very, very difficult for small businesses to operate by increasing registration fees, licensing permits, putting taxes on a number of things that small businesses have to utilise in advancing their business venture,” Dr. Jagdeo said.

Talking about main areas such as water and electricity that were being heavily taxed, the PPP General Secretary said because of this immense pressure that was placed on the backs of the ordinary Guyanese, the government had to relieve Guyanese from the burden.
He related: “It was very difficult for small businesses. Money in circulation just dried up. If you talk to people, taxi drivers, almost everyone, it was very difficult.”
In December 2022, President, Dr. Irfaan Ali said that the Guyanese people saved some $31.4 billion following his government’s decision to slash more than 200 taxes since taking office in August 2020.

The Head of State related that when his government took office, several drastic measures were implemented to help reboot and revitalise the economy. One of those measures included the removal of the more than 200 burdensome tax measures.

“We saw this as a critical policy measure in boosting disposable income at the household level,” President Ali said.
Before the tax cuts, President Ali said that the average growth rate of tax from 2016 to 2019 as a result of those over 200 taxes, was just around 14 per cent.
Dr Ali added that if this 14 per cent is applied to the 2019 tax figures and that amount is compared to what was collected, it is evident that removing these tax measures meant that Guyanese could save billions of dollars.

President Ali further said: “Removing the 200 plus burdensome tax measures has saved the people around $31.4 billion in taxes… at the household level, this meant that roughly $180,000 per family was saved with the removal of these taxes.”

It was also reported in 2022 that returns from VAT and excise taxes declined by 10.2 per cent following tax reforms being instituted to cushion the rising cost of living.
This was according to a report from the Bank of Guyana, which said that the receipts from VAT and excise taxes were only about $22.7 billion.
The tax reforms form part of the government’s wider agenda to improve the quality of life in Guyana and address immediate economic challenges that affect Guyanese.