The Federation was most dismayed to see Finance Minister, Winston Jordan flippantly dismissing concerns regarding increased taxation burden in our country. The Minister, according to the November 21, Guyana Chronicle, in response to statements by the private sector, on the matter labelled such sentiments as a “ruse”. The FITUG, also during several public statements, had shared its concern regarding a much heavier tax burden which is impacting on all Guyanese standard-of-life and well-being.
According to the Chronicle, the Minister said the noticeably higher tax revenues have “…come from an expanded base and not new taxes…”. We find the Minister’s explanations scurrilous and unconvincing. We agree there is an expanded tax base. Indeed, our people were not required to pay taxes on electricity, water, medicines, private health care and so many other essential goods and services. Nor, were we required to pay the magnificent fees imposed for Government services.
It should not be forgotten that these reforms, as the Minister puts it, were imposed when the nation’s population has really not changed. So with the avenues to collect taxes widened, or expanded using the Minister’s term, it, therefore, means on a per-captia basis our people have to pay more taxes. Using the Budget estimates, taxes per person have risen from $181,088 in 2014, to an estimated $300,809 in 2019. In other words, taxes per person have gone up by over 66 per cent in just five (5) years. This is yet a clear demonstration of the hardship that has now befallen our people.
Jordan also said “…the reform of the tax system has even put the public sector under tax”. Again the Minister, as a learned gentleman, well knows that it is the taxpayers who fund the public sector. Thus the increased expenditure brought about by the surcharging on the public sector will ultimately be picked up by the taxpayers whether now for locally financed expenditure or later for expenditures related to borrowings whether local or abroad.
We find the Minister’s explanations disingenuous and hardly having any semblance to the reality. Certainly it again epitomizes the disconnect between the Government, who are perched high up, and the situation that confronts the masses on the ground. While the Minister has assigned labels to the concerns of stakeholders, it was really him and his Administration that are engaging in a ruse. It reminds us though that you really cannot fool all the people all the time.
