Put differences aside, let VAT run smoothly –Sattaur
Kaieteur News
January 13, 2007
Commissioner General of the Guyana Revenue Authority, Kurshid Sattaur, says Guyanese should put all differences aside, including their political convictions, to ensure that the GRA, which has been legally charged with the administration of VAT, is given the best opportunity to succeed in the national endeavour.
Sattaur's comments came in the wake of harsh criticism of the new tax system from the People's National Congress Reform (PNCR) at their weekly media briefing, on Thursday.
Speaking to media operatives yesterday, the GRA head said he finds the position taken by the PNC as disturbing, since there were ample opportunities for complaint during the Parliamentary debates and discussions which occurred before the passage of the law.
He believes that the fact that these issues were not prominent as early as August last year, when the opportunities presented themselves for politicising, indicates acceptance and approval.
“ VAT did not feature much as an issue, and rightly so, in any major way in the political campaigning of any of the major political parties contesting the National Elections…This was indeed a healthy sign, suggesting that people were indeed cognizant of its sensitive nature and the benefits it promises for all Guyanese.”
Sattaur said that while he is not suggesting that stakeholders do not have a right to speak out on matters they find objectionable, it behoves them, at this critical juncture, to speak in a rational manner that would serve to encourage and have the desired effect of correcting any weaknesses — percieved or otherwise — in the process.
He appealed to the leadership of all political parties to educate themselves of the relevant issues affecting the smooth transition, weigh the facts relating to the issues, and exercise good judgement in determining their merit.
The PNCR had opined that the Jagdeo Administration intends to use VAT to obtain a windfall in revenue, while imposing severe tax burdens on the ordinary man.
“The arrogance of the Jagdeo Administration and its contempt for the people of Guyana are now being made more manifest as they boldly and unashamedly continue to impoverish the people of Guyana through the uncaring implementation of the Value Added Tax (VAT),” Party Leader Robert Corbin said.
The party stated that the experience of businessmen and consumers alike, over the last week, with the draconian increase in the cost of living through VAT, has laid bare the claims by President Jagdeo that VAT would result in a reduction of the cost of living for Guyanese.
“The claims by the Government that VAT would result in a revenue neutral tax have been exposed. The Honourable Minister of Finance and his Revenue Authority Head, rather than seeking appropriate remedies to the many serious flaws which have been exposed in this early implementation process, have proceeded to insult, threaten, and harass businessmen. They continue to use the State media to pedal half-truths and misleading information to the Guyanese people. Mr. Sattaur should apologise, not only to the business community, but all Guyanese,” the PNCR said.
The party added that it does not take a genius to know that the imposition of a sixteen percent (16%) tax on a value added commodity or service when only one ingredient of that service was subject to consumption tax, will result in an increased cost of the final product to the consumer.
Consumers are therefore faced with the increased costs of almost every item essential to their existence. Businessmen with stocks accumulated before December 2006 are also left to determine how to recoup their expenses when the GRA has only made provisions for stocks acquired in December 2006, the party noted.
It stressed that the paltry five percent (5%) increase in salary paid to public workers is, therefore, inadequate to cushion the effects of the increased cost of living.
“Public opinion, Parliamentary debates and constructive suggestions have failed to produce any result so far. The PPP/C has demonstrated, over its long history, as far back as the Kaldor Budget of 1963, that it understands only one language: the language of public protest. If, therefore, there is to be any resolution, businessmen, workers, and their trade unions, as well as all other stakeholders, must be prepared to act.” The party's statement said.
In this regard it stressed that it is time to shut the country down for a day or two so that the Government of Guyana can understand that the people of Guyana are ready to protect and preserve their rights.
However, Sattaur says the PNC's statement sends a conflicting signal regarding the level of support and cooperation of the tax. It added that VAT, being a tax that requires a strong will on the part of all stakeholders to hold the strain and to work cooperatively, can only succeed if all stakeholders recognize their respective roles and provide the necessary support, which is critical at this point of transition.
He posits that such intemperate statements from the Leader of the Opposition would only serve to endanger the lives of the staff of GRA.
“ We, the pioneers of this noble initiative on behalf of the nation, who have been given the green light to prepare the nation for this major tax initiative from all the political players, including the leadership of the private sector bodies, are dismayed by these statements” Sattaur said.
The GRA boss said he would admit that maybe his description for businesses may have been a little too harsh and generalized. He will continue to criticise the unfair practices of some members of the business community “who continue in their avaricious practices of fleecing taxpayers of their hard earned and limited spending power”.
He added that the staff of the GRA has provided ample evidence, during its campaign, to convince Guyanese of the many positive effects of the new tax reform measure, the most cogent being the effect on the cost of living of the ordinary Guyanese.
“VAT will accelerate the progress of this country that was for too long caught up in the stranglehold of unscrupulous business practices of some, in the areas of under invoicing, fraudulent reporting of their taxes, and cheating at the highest levels and in all forms to avoid paying their fair share of taxes.
According to him, already there are some businesses that are beginning to realize the gains from doing business under the VAT. In this regard, he congratulated those businesses, adding that it is indicative of those that take nation-building seriously.
With regard to Corbin's statements, Sattaur said if unscrupulous businesses succeed in their campaign to hoodwink the political directorate of the country, the ultimate result will be further exploitation and deception of the consuming public, which has supported these businesses over the years.
“I refuse to believe that the political parties of this country are so gullible. It must be patently obvious to anyone that the efforts of the GRA in preparing the nation to administer this most fundamental tax reform measure are being threatened from this level of political interference. The millions of taxpayers' dollars that have been spent in the process are being put at serious risk of being dissipated”
He stressed that for anyone to embark on this ill-conceived course of action without thinking of these consequences is highly unfortunate. He emphasized that the staff of the GRA span the spectrum of class, race and religion, and are most hardworking and dedicated.
“I find the statements by the head of the opposition party, a person for whom I have the greatest respect, very troubling an a great disservice to the officers who approach their work with great conviction and professionalism, determined that their efforts will benefit all Guyanese of all ethnic backgrounds and political persuasions”
“I wish to send a timely reminder, not only to the leading opposition party, but all political parties and all stakeholders, that the implementation of VAT is carried out by the GRA and not by any political party or parties”
He reminded that Guyana is at the crossroads of undergoing a major change in it social and economic landscape, an its actions are being viewed on a daily basis by persons outside of Guyana through the use of information technology and modern communication media.
“Let us choose to behave in a manner that would serve to help the nation in helping the GRA carry out its statutory functions. We at the GRA stop short of demanding from all political parties that they should behave more responsibly and display exemplary conduct similar to what was displayed by them when the Bill was piloted through the National Assembly , with massive support from he parties in Parliament.” Sattaur said.