The freezing of the income tax threshold for another year
What the people say about...
For the sixth consecutive year the national budget has failed to increase the non-taxable income threshold from $18,000 monthly despite repeated calls from the private sector and the unions. This year there was a request for the threshold to be raised to $35,000 following a five-year freeze. The views of the man/woman-in-the-street follow:
Norman Browne - trade unionist/youth leader: "It's the rank and file man who is feeling the pressure and will continue to feel it even more. President Bharrat Jagdeo and Finance Minister Saisnarine Kowlessar need to give strong reasons as to why the income tax threshold has not been raised over the past six years and why even government's $20,000 minimum wage must be taxed. I don't believe government is acting in the best interest of Guyanese. Guyanese are crying out. Government still has some time to correct this situation since the contents of the budget are still to be debated and agreed on. I would suggest between $30,000 to $35,000 as the basic liveable wage, when you consider increased expenses in rent or mortgage, electricity, telephone and water bills. This excludes food. Over the past six years all these expenses have multiplied. Additionally, a significant percentage of the work force, is young people and President Jagdeo, when running for office, used the youth platform. He spoke about what the PNC did not do for the young people and he promised to do them all. Now is the opportune time to show that his government cares."
Maria Hutson - domestic/housewife: "I thought that this year the tax ceiling would have gone higher to give the small man and woman like myself some relief. My salary is already small and to take away from what I should get would not mean anything with increases in the cost of living for everything."
Merle Dover: - The freezing of the income tax threshold this year once more simply means that the local public and private sectors will not be able to attract or even hold the qualified and skilled persons they so badly need. There is no relief for the low income or even the middle income workers who are the real taxpayers. Right now workers have serious questions as to how well they are benefiting from the income taxes which they dutifully pay."
Ivelaw Worrel - supervisor: "The freeze on the income tax threshold over the last six years makes the increase in salaries workers have been getting in recent years meaningless - moreso because of the increases in the cost of living. I had expected it to go to $30,000 or $35,000 because of the consultations held and suggestions which arose from them. It is important that the ceiling be raised. It is one of the most important things for the small man. Not raising the income tax threshold would only make workers reluctant to work overtime. A higher income tax threshold would have been a boost for increased production."
Richard Singh - overseas-based Guyanese: "Incentives are needed, not only for investors but for all categories of workers. Raising the income tax threshold could be used as an incentive for those in the lower and middle income brackets. In view of the fact that workers have been bearing the strain for some time now I would think that the ceiling should be raised to $30,000 or even $35,000. Where I live I pay just about 8% to 10% of my annual income as loans and other expenses may be considered. Why should I pay so much as much as 20% or even 50% of annual income in taxes? Then I'm working for the state. It is best I live on social security in another country. Fortunately, I still have some confidence in the country's economy and have begun to re-invest in the country."
Wendella Da Costa - private sector employee: "I am not happy that the income tax threshold has not been increased. Mr Kowlessar should say why it has not been increased at least, and why they keep on taxing the small man without enlarging the tax net to bring in those who are making the big bucks and not paying up their taxes. Increases in salaries right now mean very little with having to pay GT&T, GPL, GUYWA and GS&WC. Soon road licences will be going up as well. Until this year, I really did not give any serious consideration to the income tax threshold but it's because workers are now looking for relief all around that I am now conscious of it."
David Walker - miner: "The budget is not a favourable one and freezing the income tax threshold for so many years now is even worse with the increased cost of living. Because of heavy taxation both for myself and workers, it is just not encouraging to continue.
Tonzia - private sector employee: "I am so upset about the income tax threshold not going higher. The budget says no new taxes but the cost of living is so expensive. All the utilities have increased their rates and the salaries are going nowhere. The budget is an empty one. Why must we pay taxes on salaries below US$200? We want to make our contribution to the development of the country but we can't do so without food and being able to meet basic expenses."
by Miranda La Rose
Stabroek News
March 18, 2002
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Narda Tiwari - private sector employee: "To meet the needs of low income workers like myself our national budget must have a heart. It must have a conscience. The freeze on the income tax threshold which could have benefited workers like myself shows that it does not cater for people like me. The pressure is heavy on some of us. For instance, in my home I am the only working person. My mother is not working and I have a sick brother who we have to take care of. Knowing that the income tax threshold had not been raised for a while my expectation with regard to that was high. Now I'm disappointed."
Because of my operations I have to declare my earnings each year and there's no escape. I never wanted to leave this country but now I feel like closing down my operations and moving out of the country. Many people I know don't want to leave the country but they, too, are considering doing the same. This is what you call frustration and you would have expected some relief from the budget."
Urbane Killikelly - mechanic: "I am not satisfied with the fact that there has been a freeze on the income tax threshold for some six years now. The Finance Minister could tell us why this is being done. Workers are also not satisfied with paying taxes and really don't know how the money is being spent. The problem is that it is the poor man who is suffering all the time."