Dear Editor
Since the PPP took over the government we are told that the government has put a number of measures in place and has removed a number of taxes imposed by the last regime, which, in my opinion, callously imposed taxes on data, health care, education, water and electricity in addition to applying VAT to certain basic food items. We are informed by the President that the removal of Excise Tax on fuel has resulted in $90b dollars remaining in the pockets of the Guyanese people. Now maybe, just maybe the government feels these are very good measures and on the surface it sounds good and generous. However, let’s examine this in light of the fact that we have over 40% of our people in poverty, to see who actually benefits from these measures.
Re Excise Tax on gasoline, well I benefit and those who own motor vehicles, businesses, contractors, manufacturers, minibus and taxi drivers etc. The question is, has the price for goods reduced? No. It is still moving upwards. Have transportation fares been reduced? No! So, maybe someone can explain how the 40% in poverty benefitted from this measure. Did the pensioners who received a measly $3,000 increase benefit? According to government spokespersons these measures would have returned into the pockets of Guyanese over $200,000 billion dollars. The same question arises: did the 40% in poverty benefitted from these measures? Not much.
Now if the government were to put back these measures in place and remove others it means that the government would have retained/obtained $200B. I suggest they do just that, then take this amount and give it to the 264,000 households, and if my math is correct, each household would receive over $700,000. Well maybe they can keep a few and at least give each household $600,000 a year. The President also stated that tax allowances would be given to support families. According to a Kaieteur News report, the government will introduce a new income tax deduction allowing parents to claim an additional $10,000 per month for each child, effective next year. “This will increase the tax-free threshold for families with children,” the president explained.
However, here again if by the end of next year Government workers do not earn less than $100,000 and the reality is they earn less in the private sector this allowance would not improve their economic standing. We are giving, and I say we because it is our money, $40,000 to every child in school – what about those whose parents cannot afford to send their children to school? How does this fit into ‘no child left behind’? It is my opinion that instead of the ad hoc handouts which has attracted cries of serious corruption, we need a proper system to tackle the social problems that are prevalent.
I am advocating the establishment of a national professional welfare administration staffed by professionals to direct assistance to our people. I was advisor to Minister Chandarpaul and there were numerous people coming to the office everyday for assistance. Sometimes both of us would put our hands in our own pocket to help people. So, I put forward a proposal and lobbied for a difficult circumstance fund to be established. I was instrumental in setting it up and I ran this program for many years.
We helped people in various ways. Assistance for funerals, grants to do small business or groceries. I would not give money but a letter to one of the stores to deliver x amount of groceries. We also helped people with prostheses to improve their mobility. This was my ‘baby’ and it is still operating in the Ministry of Labour. Individuals who see me would say “Bisessar I wish you were still there”. Thousands were assisted.
Rajendra Bisessar
BSc Sociology, LLB
