…hails proposed upgrade of Lethem airstrip

THE private sector is presently conducting an impact analysis of the 2018 National Budget but even as their economists comb through the $267.1B financial proposal, there is a general consensus that the transformation of the Lethem airstrip into a regional hub and international aerodrome is a step in the right direction.

On Tuesday, one day after the Finance Minister Winston Jordan unveiled the estimates more than 20 representatives from the Private Sector, including those sitting at the helm of the Private Sector Commission (PSC), the Georgetown Chamber of Commerce and Industry (GCCI) and the Guyana Manufacturing and Services Association (GMSA) convened at the PSC Waterloo Street Head Office to discuss it.

Minutes after the hours-long meeting concluded, the PSC Chairman, Edward Boyer said the budget is being analysed. “We have people here who are economists, thorough people, they understand what they are doing and they are going to vet all and everything and see how it impacts the economy, see how it impacts businesses, and in general the country,” Boyer told the Guyana Chronicle.

At a glance, he said, there are some measures, projects and programmes that would undoubtedly benefit the people of Guyana and, simultaneous create an enabling economic environment. The transformation of the Lethem airstrip into a regional hub and international aerodrome is one such project. Minister Jordan, in presenting the budget to the National Assembly, disclosed that the Government is negotiating with a multilateral donor to secure a US$15 million loan to finance a project for aerodrome and airstrip development across the hinterland. It is under that programme, the Lethem airstrip will be upgraded into a regional hub and international aerodrome, in order to receive flights originating from Brazil and other Latin American neighbours.

“The development is a very, very positive (one),” the PSC Chairman stated. Government’s decision to grant an amnesty to all delinquent taxpayers – corporate and individual was also given the thumbs up by the PSC. This amnesty will be in effect from January 1, 2018 through September 30, 2018.

Taxpayers who file and pay all principal taxes on or before June 30, 2018 will have all interest and penalties waived, while those who file and pay all principal taxes between July 01, 2018 and September 30, 2018 will have 50 percent of the interest and penalties waived, the Finance Minister had explained.

GCCI President Deodat Indar, like Boyer, said that the budget is being critically analysed, noting that within two days, the Private Sector as a collective body would release a statement on its position. “We have our economists who are looking at this budget at the moment,” he posited.

LACK OF JOB CREATION
But at a glance, the GCCI President said that the budget lacks direction. “We did not get a message from the broad direction from the budget, in terms of job creation, in terms of direction, in terms of incentive regime, taxation policy, we did not see the broad direction coming from the budget,” Indar said as he spoke on behalf of his fellow businessmen and women.

However, he said GCCI is pleased with the decision of the Government to remove the Value Added Tax (VAT) on Education and on finished products in the Logging Industry, in addition to reversing of the Tributors Tax from 20 per cent to 10 per cent. “We are happy about that,” Indar posited.

During the budget consultation, GCCI had lobbied Government for the removal of VAT from finished products in the logging industry and from the inputs for rice operations, in addition to the reinstatement of the 10 per cent Tributors Tax against the 20 per cent imposed this year. The GCCI is also calling on Government to reduce the Corporate Income Tax by 10 per cent from its current high of 35 per cent through a process of gradualism.

In addition to the removal of VAT from Education, and the reversing of the Tributors Tax, with effect from January 1, 2018, Government has proposed to exempt VAT from supply of logs and rough lumber to the sawmilling industry. According to the Finance Minister, this would improve the cash flow of operators in the industry by at least $80 million.

The GCCI President said too that the Private Sector has taken note of the proposals for the Tourism Industry. It is Government’s intention that in 2018, to have the Guiana Shield be promoted as a tourism product, in addition to the deepening of links between industry operatives and investors.

However, Indar like Boyer, expressed concerns for the ailing Sugar Industry, saying that the welfare of sugar workers must be protected. In the 2018 Budget, Government has proposed $6.3B for the Sugar Industry to support the reduced operations of the Guyana Sugar Corporation (GUYSUCO). That aside, Government has announced that the Guyana Office for Investment (GO-Invest) in 2018 is anticipated to rake in investments totaling $154 billion with some 5,725 jobs likely to be created.