C-tax waiver for local garment industry sales --other economy-reviving resolutions crafted By Gitanjali Singh Stabroek News October 12, 1999 A joint-communique issued at the end of the private sector/presidential summit last evening announced the immediate waiver of consumption tax on local sales for the garment industry. This is to bring stability to the sector and provide job security, given that the tax has caused garment manufacturers to be unable to compete with imports in the local market. Local businessmen sat yesterday for almost 12 hours with President Bharrat Jagdeo at Le Meridien Pegasus in the first ever private sector/presidential summit to help chart a course for the economy's revival. They, the President and government ministers have crafted 19 resolutions to be given effect to. The government has agreed to house and fund the Tourism Authority announced in this year's budget for a period to be agreed on and to provide additional tax incentives to "sector-leading investments" in the tourism sector in order to stimulate its growth. The summit also yielded a commitment for the private sector to work with government via a committee to examine the feasibility of, mobilise resources for and oversee the implementation of the Berbice River bridge, a deep water harbour, the Canje reservoir scheme, the Guyana/Brazil road and the intermediate savannahs project. A joint private sector/government committee is to complete an investment code for Guyana by next month end. The investment code, which will come out of an investment strategy, is to be completed by November 30 The recent study on the introduction of value-added taxes in Guyana is to be circulated by the government to the Private Sector Commission (PSC) for review and recommendations. The PSC, on the other hand, has restated its support for the implementation of the Revenue Authority which is stuck in the courts. It has also agreed that the Guyana Manufacturers' Association would present a concept paper for the establishment of a private sector development bank by December 31, to the government. The President restated the government's commitment to waive the taxes and reserve requirements as well as to help secure credit lines for financing this institution. This is in keeping with calls for lower cost financing for businesses. The private sector also agreed to establish a committee to work with Home Affairs Minister, Ronald Gajraj, to address the issue of crime. The committee will provide, on a continuous basis, inputs to address this problem, the communique stated. The President gave an undertaking to link royalty payments in the gold sector to the price of gold on the world market for medium- and small-scale mining operations. (In his address to the summit, he had proposed that if the price of gold fell below US$280 per ounce the royalty be reduced from five percent to four and if it dropped beyond US$260, the royalty be reduced to three percent). The government also agreed to reduce or waive registration fees for new companies and companies revaluing their assets. The summit has also agreed that discussions are to immediately commence on strengthening/rationalising the existing structures in mining sector and would include, if needs be, the establishment of a special ministerial mechanism. The government has also undertaken to "vigorously" pursue the removal of barriers to Guyana's rice in some CARICOM states and to work actively to increase regional and extra regional markets. The rice industry has undertaken to supply a paper to President Jagdeo on its status. And a small business act is to be laid in parliament by the end of the year to encourage small business development. The Small Business Association is to provide draft legislation for discussion with the government. The proposed act is to focus on simplified registration, special incentives and tax regimes for small and micro enterprises. On technical and vocational training, the summit agreed that consideration be given to placing government technical institutes under autonomous management to enhance the development of relevant skills. It was also agreed that donors support for skills training be streamlined and co-ordinated. Recommendations for curriculum review and reform are to be taken immediately by the private sector. The summit also agreed to establish a joint government/private sector working group to deal with land issues. It was agreed that the decentralisation of land administration would be considered and the private sector is to work with the government to implement the provisions of the Deeds Registry Act and the establishment of the semi-autonomous Lands and Survey Authority. The government has also undertaken to give effect to stock market legislation by December 31, as a means of developing additional sources of financing for the private sector. And the government has agreed that the PSC and the Guyana Bankers Association review the money laundering legislation now before parliament before it goes for its second reading. The forestry sector would see a National Certification Committee being put in place to facilitate certification of timber products in accordance with international criteria. Grant resources are to be mobilised to support this body and considerations are to be given to establishing a marketing council. Once the poultry sector can prove dumping (of chicken and by-products), the government has committed itself to make strong representations on the matter. A commitment was given to reactivate the Advisory Committee on poultry. The government has also agreed to introduce copyright legislation in parliament. The communique said that the joint decisions it announced did not represent the entirety of the day's proceedings and a permanent secretariat is to be established to ensure its implementation, follow-up of the agreed recommendations and to co-ordinate further inputs into future policy initiatives. Stabroek News understands that the PSC and President Jagdeo will meet this evening to do just that. The communique noted that the summit yesterday marked a milestone in the relationship between the current government and the private sector and said the discussions were far reaching in policy and comprehensive in nature. It added that the summit sought to address with urgency, the critical issues which constrain private sector development. Every business person this newspaper spoke to was upbeat about the summit and the outcome, noting that if the government followed up on the resolutions, it would indeed be historic for Guyana. A © page from: Guyana: Land of Six Peoples