-says ‘unlawful’ tax waiver to One Communication highlights need for policy guide

STRONGLY criticising the Georgetown Mayor and City Council for granting tax waivers to foreign companies, People’s Progressive Party (PPP) General Secretary, Dr. Bharrat Jagdeo, on Thursday blasted the municipality for unfairly favouring wealthy corporations at the expense of ordinary citizens.

Dr. Jagdeo’s comments came just days after the city municipality granted an ‘unlawful’ 25 per cent tax waiver to the Guyana Telephone and Telegraph Company (GTT) now rebranded as One Communication.

The general secretary condemned the move, calling it “ridiculous” and an example of the city’s failure to hold large foreign companies accountable for their financial obligations in Guyana.

According to Dr. Jagdeo, the practice of granting waivers to companies like GTT is not only a poor policy decision but also raises questions about the integrity of the city’s financial management.

“We’re opposed to this City Council giving waivers to GTT and these foreign companies for their rates and taxes,” Dr. Jagdeo said. “It’s ridiculous. They claim they don’t have money, but these are big companies with huge assets here. They are selling their assets and making millions, tens of millions of US dollars in Guyana. They should pay their fair share of taxes to the city,” Dr. Jagdeo pointed out at a Freedom House news conference.

His comments also come amid growing concerns about transparency and accountability within the Georgetown City Council.

He stressed the importance of a formal, publicly announced policy to guide the process of granting tax exemptions, which he says should not be left to the discretion of City Hall officials or negotiated behind closed doors.

“We’ve made it clear—if you’re giving waivers, there must be a stated policy,” Jagdeo insisted. “People should not have to walk into anyone’s office to negotiate a waiver.”

Citing the Municipal and District Councils Act, Chapter 28:01, Minister of Local Government and Regional Development, Sonia Parag, on Monday said that the decision to grant GTT the waiver was unlawful as it exceeded the 10 per cent that is stipulated.

Section 215(3) of the Municipal and District Councils Act, Cap. 28:01, clearly stipulates that any discount on rates due must not exceed 10 per cent. By approving more than double this legally mandated limit, the mayor and his council have blatantly disregarded the rule of law and their fiduciary duty to the citizens of Georgetown.

This decision comes at a time when the Council continuously laments its financial woes and requests bailouts from Central Government, claiming to be cash-strapped.

Parag pointed out that the Council’s financial management must be scrutinised. Instead of prioritising the collection of funds owed to the city, they have chosen to grant concessions that are not only legally questionable but also fiscally irresponsible.

Most recently in August 2024, the Council approved a similarly controversial waiver for political parties, which the People’s Progressive Party/Civic (PPP/C) vehemently opposed.

It is widely known that the opposition owes the city billions in rates and taxes for its Sophia headquarters —funds that would significantly improve the quality of life for Georgetown’s residents.