Further, the GCCI says that the income tax threshold should be raised from $20,000 to at least $36,000 to enable the average consumer to have increased spending power, and there needs to be a reduction in the PAYE rate.

And the Chamber wants the minimum turnover tax of 2% of revenue for commercial companies to be abolished.

The GCC&I said in a press release on Wednesday that these are some of its recommendations presented to Minister of Finance Saisnarine Kowlessar at a meeting in the ministry's boardroom last Thursday. President of the organisation, Edward Boyer led the Chamber's meeting with the finance minister to present its proposals for the 2004 national budget.

The following day the Chamber submitted details of the proposals in writing to Kowlessar, the release said.

The body is also recommending that tax certificates should be introduced into the system rather than having tax returns, which it said are more time and labour consuming.

The Chamber is also advocating that corporate taxes be lowered from 45% to the amount the manufacturing sector is granted. In addition, diesel fuel should be taxed at a maximum of 5% of CIF.

According to the release, it is the view of the business community that the current taxpayers are overtaxed. The business group noted that categories such as traders, hucksters, tradesmen, truckers and minibus operators, to name a few, often evade the current system by not paying any taxes.

The Chamber said that "these untargeted groups are the social engines of Guyana - they cause the most harm and expense, yet do not contribute."

Tourism

The Chamber is of the view that government needs to create what it referred to as a "stable domestic security platform", so that such an environment would enhance the drive in tourism and other non-traditional sectors. Moreover, the GCC&I has proposed that a special budget be allocated for the tourism sector in Guyana, to market the country with an "Open Sky Policy" to reduce airfares, which in turn will have a positive spin off for the hospitality industry.

Economic zones

The business body is also suggesting that Guyana should open its doors to be an emerging and competitive economy with special economic zones to attract overseas investments which will in turn create employment. The release noted that this is actively practised in India with great success.

The GCC&I would also like to have the private sector involved in the allocation of funds for the HIPC Initiative, and the spending of funds in the various sectors of the country.

It recommended also that funds should be allocated in the budget to improve the efficiency of the legal system.

Housing

According to the Chamber, government should give incentives for building new homes by restoring tax credits on mortgage interest for new homes. It argued that duty-free concessions should also be made available for housing materials. Additionally, mortgage repayments should be tax deductible for first-time buyers.

And to expedite regional linkages, the GCC&I is urging government to push the Guyana/Brazil road and bridge as well as the bridging of the Berbice River. The Chamber said that the trade flow with Guyana's neighbouring countries will increase exponentially, providing positive spin offs with commercial activities. The release pointed too to a great need for the creation of a deep-water harbor in the Berbice River.

Agri interest rates

Agricultural interest rates are extremely high, the release noted, and this makes life difficult for farmers who have to compete in a global economy with other farmers who are often subsidised in their countries and are able to acquire loans at interest rates that are single digit, such as in the United States and India.

The GCC&I recommended that interest rates for agriculture borrowing be reduced by 3%. Additionally, projects that are tourism, manufacturing, ports and E-commerce oriented should also be able to acquire loans at reduced interest rates.

Also reduced interest rates are needed for student loans for university and other levels of education.

Customs

The GCC&I said it would welcome any relief members of the business community can get with respect to Customs. "For too long Customs problems have been plaguing our members.

Some of the frequently articulated grievances of importers are: the misplacement of invoices, the requirement of original documentation by Customs which is sometimes misplaced, entries take a very long time to be processed, businessmen are often 'in the dark' as to the status of their documents, (and) the lack of transparency in the processes of the department.

According to the Chamber, a change is needed in the current structure of Customs, where businessmen can have free movement of goods. The Chamber noted its concern over allegations of false declarations being made, which are sometimes processed because some Customs officials take bribes, while some entries are returned for minor errors that could have easily been sorted out.

National export strategy

Guyana needs to seek the full benefits of globalisation and this could be achieved by the formulation of a National Export Strategy, the business group said. There is also need for the establishment of a partnership between the private sector and government with the private sector having a participatory role.

In the Chamber's view, "Guyana has suffered from a culture of conservatism and a gap between policy and policy implementations." The body pointed out that the "bureaucratic handicaps we face in our everyday life to implement projects and ideas are often overwhelming. We must stop the political and bureaucratic handicap and let us move our country forward."

"We in the private sector must challenge ourselves to create exports and not depend on our local and domestic market if we are to exist. Additionally, there is a need for a change of attitudes in the business community and not to be too dependent on government," the release added.

Noting that in the past the country's economy had been affected by political disturbances, the Chamber said now an uncontrollable crime situation is having an adverse impact on the business community.

These negative events have resulted in billions of dollars in losses and possible endangerment to local and Foreign Direct Investment (FDI). FDI plays a major role in the economic development of a nation, one that Guyana cannot afford to lose on, the release observed.

It said further that some of the country's major sectors and industries are not now prepared to face the effects of globalisation and free trade. This lack of preparation can cause the country to lose billions of dollars especially in the export sector, the Chamber contended, and cited a World Bank Report which warned that the Caribbean stood to lose one-third of its US$12.5 billion in annual exports due to the effects of globalisation.

Additionally, with the advent of the Free Trade Area of the Americas (FTAA) Guyanese importers will be in a perilous position if Customs rates are punitive and the general situation at Customs House does not improve, the Chamber warned.

Trans-shipment strategy

The GCC&I also declared that Guyana desperately needs wealth-creation strategies, and suggested for instance that the country can become a major trans-shipment point between Latin America and Europe. The potential is ripe for government to create export bonds which will facilitate the service and commercial entrepreneurs re-exporting foreign goods at a profit, the Chamber advised.

In other Caribbean countries, re-exportation is the order of the day, and here it will inject much needed foreign currency into the country's economy.