“Bigger deficit, high inflation & unstable exchange rates” – Ramotar warns against tax cuts

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By Jomo Paul

Incumbent President, Donald Ramotar addressing the gathering at the GMSA luncheon.
Incumbent President, Donald Ramotar addressing the gathering at the GMSA luncheon.

[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.

5 COMMENTS

  1. Confusion, and more confusion in the PNC camp! How on God’s Green earth can an unqualified soldier be more Qualified than two Economist? Granger and Nimakaram Mootoo told a set of factory workers in Canada that Guyana is having a brain drain problems that if PNC/AFC win the Elections we (PNC) will need you to come and help develop Guyana. PNC must not be trusted! Vote PPP! Vote Modernization!

  2. What does Ramotar know about economics?David is far more qualified than you and Jagdeo in any area.I believe,these hypocrites are fearful of what will take place after they lose the elections.Granger knows what he`s saying,because he is surrounded by experienced advisers who will give him the necessary advice needed.He is smart enough to be inclusive,unlike you who operate unilaterally.STOP EVADING DEBATES.DO NOT TAKE GUYANESE FOR GRANTED.

  3. Mr. Ramotar, you’re kidding, right? How can it possibly be a bad thing, to decrease the taxes of car dealers, and car buyers/importers? wouldn’t it benefit the people? OOPS! I forgot, this is and never have been about the people. During your party’s “command”, Guyana has gone from being the “Bread Basket of the Caribbean”, to “Scraping of the Bottom of that same Basket” to feed hungry children. Regarding the exchange rate of the Guyana dollar, that “deflation” happened over 30 years ago. It makes one wonder where you’ve been all the time this was happening; and you want people to trust you AGAIN?

  4. APNU+AFC promises a rose garden.
    This ploy will work to fool the gullible and entice the opportunists.
    This rose garden will be morphed into thorns once ‘I man Granger is elected’.
    These wild promises are made intentionally for entrapment.
    After all ‘promises are made to be broken’ – Forbes Burnham style.

  5. Well Ramotar, if Granger is elected and oil is found, he too could eliminate taxes. And we’ll save billions by getting rid of persons like Jagdeo who are a drain on our resources. So that’s where money will be found.

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