–justifies push for interest waiver although calling for local authorities to get more funds

ALTHOUGH claiming that the recent announcement of significant increases in the subvention for local authorities is insufficient, the People’s National Congress Reform (PNC/R) has stood firmly behind the plans of its councillors at the Mayor and City Council (M&CC) for political parties to pay lower rates of taxes, and a waiver of the interest on outstanding taxes.
The PNC/R councillors, in 2024, had proposed institutional rates for political parties; this was flatly rejected by People’s Progressive Party (PPP) councillors when it was tabled.

General Secretary of the PNC/R, Sherwin Benjamin on Friday said that he believes political parties should be given a different tax regime in relation to rates and taxes, and said that the move by the Georgetown municipality to have that enforced is a positive step.

“I think political parties should be given a different tax regime in terms of rates and taxes, and I see it as a positive step being taken by the municipality of Georgetown to have that enforced… And I don’t see that we are in any way reneging on paying our fair share. I don’t think political parties should pay the same rates as businesses, because we are not businesses,” he added.
It has been widely reported that the PNC/R owes over $6.7 billion in taxes to the M&CC. However, Benjamin, although unware of how much the party actually owes, claimed that the PNC/R does not owe that much.

While championing the push for lower rates for political parties, the PNC/R also made a case for the City Council to be allowed to institute revised and “modern” rates that would effectively see ordinary citizens paying more taxes.

And while also describing the recent increase in subventions for municipalities and Neighbourhood Democratic Councils (NDCs) as “insufficient”, the party, through Executive Member Ganesh Mahipaul, justified the City Council’s recent proposal for a waiver of interest on outstanding rates and taxes.
Mahipaul said that the proposed waiver of interest on taxes could be seen as the council trying its best to “attract taxpayers” to pay its taxes owed.

He related that: “[The Council] has to start making decisions that they feel is within their best interest to attract the revenue… that they have to attract and with all of this interest and so on, people are not paying and then you have to go to court it’s a long-drawn-out system.”

Minister of Local Government and Regional Development, Sonia Parag had called out Mayor Alfred Mentore and APNU+AFC-aligned councillors of the Georgetown Mayor and City Council for what she described as the “unlawful and unauthorised implementation” of a financial regulation aimed at waiving interest on outstanding rates and taxes within the capital city.
A letter seen by the Guyana Chronicle dated March 26, 2025, addressed what the minister views as a clear overreach of authority by the Mayor and Council.

According to Minister Parag, the purported regulation lacks legal merit, and contravenes the Municipal and District Councils Act, Cap. 28:01 of the Laws of Guyana, which vests exclusive authority to make financial regulations in the Minister of Local Government and Regional Development.

“The law is unambiguous,” the minister wrote, quoting Section 146(1) of the Act: “The Minister may make financial regulations for controlling and managing financial business of councils.”
She explained that the Act does not empower the Mayor or City Council to draft, enact or implement any form of financial regulation, including the waiving of interest on taxes and rates.