propaganda press! freedom in Guyana

THE Guyana Chronicle sought reactions from prominent persons on the recent announcement by President Bharrat Jagdeo, that the income tax threshold has been increased from $28,000 to $35,000 with effect from January 1, 2008.
Some 36,000 persons will now be exempted from paying income tax.
Prominent Attorney-at-Law Mr. Anil Nandlall has lauded the move by the Government describing it as a positive response to the increased cost of living.Nandlall said an increase in electricity rates and other price increases will undoubtedly have an impact on the cost of living. [really? he should know about GPL very well, his brother kesh is the main hatchet man at Guyana Power & Light. what is he really Revenue Manager or Director of Commercial Services? ]It is in this context, Nandlall said, that the raising of the income tax threshold will bring some reprieve to the situation.He said it is important to look at the Guyana situation against the international backdrop before one make a proper assessment.

“Internationally, the world population growth is exceeding the world food production and this is compounded by the fact that change in global weather pattern is having a negative impact on food production.” [where does he get this? out of his ass. there is no shortage of food in the world.it's all a hoax]

“One cannot also ignore the unprecedented and phenomenal increase in fuel to over 300% over the past three years,” Nandlall declared.

He pointed out that many of the large food producers of the world are also shifting their emphasis away from food production to alternative fuel.

“All these international phenomena have an impact on the Guyana economy, and so that increase in the income tax threshold is indeed the Government’s response internally to deal with the repercussions of some of the international phenomena to which I have referred,” he asserted. [this is the PPP standard line. none of the problems and issues in Guyana are the result of the clowns in power]

He also noted that based on his understanding, the increase in tax threshold was designed to bring some level of reprieve and to alleviate some of the hardships faced by Guyanese.

Nandlall also said it shows that the People’s Progressive Party Civic (PPP/C) government is a government that respects the wishes of the people of this country and is a government that acts in accordance with the reality of what is facing Guyana and Guyanese.

Veteran consumer advocate Ms. Eileen Cox, when contacted, said the increase in threshold has been much anticipated, and while it is “a little late in coming, it is most welcomed”.

Cox, who has been the longstanding head of the Guyana Consumers Association and a fierce advocate for the rights of consumers, noted that the increase will benefit thousands of Guyanese but it will do little to relieve the burden of the poor man.

Though many are pleased with the 20 percent rise of the income tax threshold (from $28,000 to $35,000), which represents the highest rise in several years, some are still concerned about the effects of the rising inflation which is likely to damper on the joys of the taxpayer.

In an interview with the Guyana Chronicle yesterday, Managing Partner of Ram and McRae Chartered Accountants- Christopher Ram, commended the move by the government but pointed out that a tax credit, directly aimed at the poor working class, might have been a better way to deal with the rising inflation as opposed to raising the threshold.

He said that though the rise puts more disposable income in the hands of the employed person, it means absolutely nothing to those who evade tax and the unemployed.

He added that because the poor pay more in indirect taxes and because the VAT rate is still seriously affecting the spending power of the dollar, the rise may not necessarily affect the existing number of tax evasions that the government and the GRA has been addressing.

“If the tax rates were lower, and if the taxes were being carried across the board, the business community would have less incentive to cheat on tax –but at 16 percent you certainly make it very attractive” he said.

Last Saturday, President Bharrat Jagdeo, announced that with effect from January 1, the President of the Guyana Agricultural and General Workers Union (GAWU), Mr. Komal Chand, also extended welcoming words for the increase in the income tax threshold.

Chand said GAWU, along with other unions in the affiliate FITUG trade union movement, wrote Finance Minister Dr. Ashni Singh in October last year, requesting a review of the Income Tax threshold with a view to having it adjusted to $50,000.

“So from the GAWU point of view, while we welcome the adjustment of the threshold to $35,000 - it is still below our expectation,” Chand said.

He also noted that while the raise in the tax threshold will bring some amount of relief to Guyanese, it is the optimistic expectation of GAWU and its affiliate, FITUG, that by the time the 2008 budget is presented in the National Assembly, the government would have reviewed the current 16 % Value Added Tax (VAT).

“We would like to see a reduction in the VAT and we are hopeful the Government will review this tax before the 2008 budget is presented,” Chand said via a telephone comment.