Dear Editor,
Minister of Finance, Winston Jordan, during his 2017 Budget speech, announced that the government will be reintroducing the environmental tax on plastic bottles, which would be $10 per bottle.
This particular tax has a history. And the fact that this regime is re-imposing it once more shows the vindictiveness and the practice of deception that it has engaged in. It also shows that for them, Guyana is not a priority. What is most important to them is power, not the development of the country, but to lord it over the people and enrich themselves.
This tax was imposed on soft drinks in plastic bottles that were being imported several years ago. It had the effect of encouraging those companies that were importing these items to produce the bottles here, which would be more cost effective, rather than importing them. At the same time, it resulted in protection for local manufacturers.
One of the companies, Rudisa Beverages, took the then PPP/C government to court for what they described as a discriminatory tax that violated the Caricom treaty on trade. The company won the case in our courts and on the government’s appeal the matter was taken to the Caribbean Court of Justice (CCJ).
At this point, the PPP/C and Rudisa agreed that we will remove the discrimination and reduce the tax from $10 to $5 per bottle, but apply it to all the companies, including the local companies. The company was willing to drop the case and the CCJ agreed to give us time to settle the matter. Settling the matter entailed going to the Parliament to change the law. The whole situation was explained to the then opposition, the APNU and the AFC. Their support was needed to pass the bill to amend the law. Recall that together, they had a one-seat majority in the National Assembly. They knew if this was not passed, it would have cost the Guyana government more than $1B.
The APNU+AFC voted against the amendment imposed by Finance Minister Ashni Singh.
That left the CCJ with no choice but to rule. They ruled in favour of Rudisa Beverages, awarding them more than $1B. The actual figure was US$6.2M.
By then, the government had changed and it was the APNU+AFC regime that had to pay that amount. It was poetic justice in a way because it resulted from their selfishness and anti-national position. It is our taxpayers that had to pay that settlement.
Now, in less than two years of this regime, they have reinstated the tax. Only now, they are making it onerous on our manufacturers. Instead of the $5 proposed by the PPP/C, they have imposed $10. This will only serve to discourage production as it penalizes the local manufacturers. This is another measure in the budget that would discourage production, as it pressures the local producers in Guyana.
Yours faithfully,
Donald Ramotar
