The National Assembly recently passed the Fiscal Enactments Amendments Bill which aims to widen the tax base in part by applying presumptive taxes on the self-employed and charging sharply- increased practice- certificate fees for professionals. We asked the man/woman in the street what they thought of the move.
Ulric Jackson - Retired accounts clerk: ‘With the passage of the bill, I feel that the man in the street will have to pay more. However, the impression I get is that the professionals are not paying enough taxes. The eight-to-four man is paying the brunt of the taxes. Those professionals are not contributing enough. They will pass on the increased Practice- Certificate fee and the Service Tax to their customers. They are free to raise their rates at any time because there is no regulation of prices of their private practices to prevent the new fees and taxes from being passed down. On the matter of the presumptive method of taxation, I don’t think that this is fair. A man might have something small but he is making more money than somebody else who may appear large. In all I think that once you earn you should pay taxes. Nobody should be allowed to escape.’
Saheed Sulaman - Student: ‘The new Practice Certificate fees will be passed on to the customers. They have a lot of people who still do not pay any taxes like minibus owners. The bill is passed and the ones to pay the cost of all the new increases are the customers. The government says that it is trying to ease the burden on the taxpayer by widening the net, but at the end of the day it is the small man who pays.’
Joseph Taylor - Cellphone vendor: ‘Widening the tax base is a good idea. I would say that small business people should pay their taxes. I am willing to pay taxes myself once those taxes are not exorbitant. I do not agree with the presumptive method of taxation because they cannot assess people’s performance just by looking at what they have and not examining their finances. You just can’t make certain comparisons. Not all places offer the same wages or salaries for the same work. Professionals should pay more because they earn more, but I feel that they will increase their charges to suit the new fees and taxes. I hope that with the new increases people will see what the government is doing with the money.’
R. Spence - Private sector employee: ‘Everybody should pay taxes for the development of the country. If people continue to evade taxes where would we be? Those involved in tax evasion are robbing the people of Guyana of needed funds. For the country to develop you need money. The presumptive taxation is unfair because things may appear bright for a business when they are not. I don’t think that the Guyana Revenue Authority is equipped for the new collections.’
Bryan Hercules - Electrician: ‘The tax changes are not necessary because the country does not produce much and the fact that the government wants to introduce pay-as-you-spend tax through the Value Added Tax is a step in the right direction. Everybody has to spend and that way you can garner more taxes. I don’t agree with the raising of the practice certificates. This is going to cause people to stop working because the ordinary man will not be able to afford the services of lawyers and doctors. I think that it is fair that you pay taxes, although it is very hard for the self-employed. Sometimes you don’t make as much as another time. I don’t think that the GRA is ready for the kind of monitoring necessary. They are not technically ready and will need foreign help. This may lead to a lot of corruption in the GRA. I believe that at the start up of the GRA’s monitoring of the new regimes, the cost will be high, but the process will pay for itself in a few years.’
M. James - National Library staffer: ‘I don’t agree with the increased fee for the professionals. It should not have been raised that much. I believe that people will find ways of evading this. The presumptive method of assessment of the self-employed should not occur. Assessments should be based on actual figures.’
Natasha George - Bank employee: ‘The new taxes will affect us because we would have to pay more money for various services. I don’t know how much taxes are paid by these professionals, but they should be made to pay their fair share. Something should be done to ensure that the professionals do not pass on the tax to the general public through their fees. The presumptive assessment of the self-employed is not fair because your income may vary from month to month. I don’t believe that the GRA is ready for the additional burden which comes from the new measures.’
Julianne Cox - Housewife: ‘People will end up paying more money which they cannot afford for the services of these professionals and I don’t think that is fair. There are still people who do not pay any taxes.’
Munipha Gilbert - Private sector employee: ‘Many people will be affected with the increase proposed in the bill, and that will not be fair. Not every month a business would do well. I for one don’t think that the presumptive method of assessment and taxation of the self-employed is a fair one.’
K. Smith - Teacher: ‘How would a pharmacist receiving $40,000 per month pay an increased certificate fee? How would she survive? The bill should have specified pharmacists and other professionals with their own practice as having to pay the fee.’