By Jomo Paul
[www.inewsguyana.com] –President Donald Ramotar has warned that the proposed tax cuts by the APNU+AFC coalition will result in among other things inflation in Guyana’s economy if they were to be implemented.
Ramotar made the statement while speaking at a Guyana Manufacturing Services Association (GMSA) luncheon where the business community was afforded the opportunity to hear directly from the People’s Progressive Party/Civic (PPP/C) Presidential Candidate and ask questions.
The Presidential Candidate of the APNU+AFC coalition, David Granger had said the coalition intends to seek a reform of Guyana’s tax regime if it were elected to government.
He explained that a Tax Reform Commission will be pursued with the general intent of raising the tax threshold, reducing Pay As You Earn (PAYE) tax and reducing Value Added Tax (VAT) which currently sits at 16%.
Granger also spoke of the coalition’s intention to reduce the customs tax, which is being paid daily to import vehicles. He warned however that persons importing new vehicles will be able to benefit from lower taxes whereas persons who are importing older vehicles will have to pay more taxes.
But these promises according to Ramotar are dangerous to the economy.
“I have heard the Opposition promising a lot of things, a lot of free things they promising all kinds of freeness, they also promising to cut taxes , cut revenues, but not saying where we can pay, where we can find money to cut these things.”
He further noted, “What will that kind of promise do? It will take us back to the experience that we already had in this country. It will create a bigger deficit, it will create higher inflation and it will create exchange rate instability.”
He said that the macro-economic policy of the PPP is one that sought to ensure the economic stability of the country.
“As I speak they are drilling for oil outside our shores and if we find oil, you too might be shocked with what we might be able to do with taxes; we might be able to eliminate taxes as far as I am concerned,” said the President.