| No
new taxes, fees or fines |
This is the fourth consecutive year of no new taxes, fees or fines.
However, the upward movement in the customs rate of the US
dollar is an effective tax increase as does inflation which erodes
the real value of the personal allowance.
There is no indication whether the policy of no new taxes
is dictated by the absence of the long promised tax reform or a
failure to recognise fiscal policy as an important tool of
management.
|
| Reduction
in Entertainment Tax |
In
a 1994 paper on “Tax Reform, A Vehicle for Economic Recovery,”
Ram & McRae had pleaded for this reduction. Eight years later,
several cinemas have closed around the country but one hopes that it
is not too late to save the surviving cinemas. |
| The
Government has again announced Comprehensive Tax Reform to be
implemented in 2003. |
This
has been promised since 1993 and the sincerity and commitment must
be in some doubt. In any case comprehensive tax reforms require
widespread consultation. |
| Approximately
G$2Bn has been projected for poverty reduction programmes. |
While
the Minister identified the disbursing agencies he gave few details
of how these would operate, and the specific targets of the
programmes. |
| Tax
Concession in Support of Tourism. Remission of duties and
consumption tax to 50% and the exemption of tourism resort
facilities from 10% hotel accommodation tax. |
This
is a positive development which should help in an expansion of the
sector. The establishment of a market-oriented well-funded Tourism
Authority could offer further benefits for the sector. Visitor
arrivals to Guyana have declined, but the table attached to the
Speech has no data for the years 1999-2001. This is obviously
necessary information for marketing and planning purposes. |
