Busi­ness not up­beat about bud­get

Weekend Mirror - - CHILDREN’S CORNER -

The

busi­ness sec­tor is lament­ing the con­tin­ued lack of in­cen­tives for the lo­cal pri­vate sec­tor and high tax regimes in Guyana as key ar­eas for eco­nomic devel­op­ment which were not ad­dressed by the 2918 bud­get which was pre­sented to the Na­tional As­sem­bly last week.

Speak­ing for the sec­tor the Ge­orge­town Cham­bers of Com­merce and In­dus­try (GCCI) in a state­ment recorded its dis­plea­sure “that the fis­cal pol­icy ini­tia­tives de­tailed in the bud­get did not pro­vide stim­u­lus t o some main sec­tors of the econ­omy.”

The GCCI has con­cluded that the bud­get has short­com­ings as it re­lates to in­cen­tives for the pri- vate sec­tor. The Cham­bers said the bud­get failed to pro­vide clear di­rec­tion on in­cen­tive regime for pri­vate sec­tor, apart from the In­vest­ment Act and Aid of In­dus­try Act.

The or­ga­ni­za­tion noted par­tic­u­larly that there has been no re­duc­tion to cor­po­rate in­come taxation rate, per­sonal in­come tax rate or a rais­ing of the tax thresh­old.

Ad­di­tion­ally, the GCCI said it was hope­ful that a clear plan would have been ar­tic­u­lated in the way of job- cre­at­ing in­vest­ments and/ or, f acil­i­ta­tion of job-cre­at­ing in­vest­ments.

The Cham­bers said it is also wor­ried about the lack of plan to ad­dress the fact that hun­dreds of work­ers will be dis­placed ow­ing to gov­ern­ment’s in­ten­tion to close the sugar esates across the coun­try.

“Also wor­ri­some, is the fact that no elab­o­ra­tion of a strat­egy t o ab­sorb work­ers who will be dis­placed by gov­ern­ment’s at­tempts at GUYSUCO’s di­vest­ment/ cur­tail­ment,” the GCCI said.

The body said gov­ern­ment’s ef­forts to ad­dress the eco­nomic and so­cial malaise stem­ming from this di­vest­ment were re­duced to three sen­tences in a para­graph and that this is a great cause for con­cern given the in­dus­try’s im­por­tance and ma­te­rial im­pact on the eco­nomic liveli­hood of many com­mu­ni­ties.

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