Toolbox

Private sector awaiting gov’t steps to legitimize Queens tax concessions

-Calls for public apology to Yesu Persaud

The Private Sector Commission (PSC) says it looks forward to the steps that the government will now take to give legal cover to the concessions announced for the investors in the Sanata Complex and it also urged that a public apology be made by President Bharrat Jagdeo to businessman Yesu Persaud.

In a statement yesterday on the controversy which has swirled around the Sanata deal, the PSC called on President Jagdeo to issue a public apology to Persaud for the hostile manner in which he responded to the latter’s proposal that others benefit from the same type of tax concessions granted to Queens Atlantic Investment Inc (QAII).

The PSC also said that it was pleased to note that the Ministry of Finance has considered it necessary to publicly clarify the Government’s position on the privatisation of the Sanata Complex to QAII and the announcement that certain tax concessions were to be granted to the investors.

“It appears from the Ministry’s statement that the Government has now acknowledged that the decision to proceed with the privatisation of the Sanata Complex, including the granting of tax concessions, does not conform to the requirements of our existing tax laws.

“The Private Sector Com-mission considers it regrettable and unfortunate, therefore, that when Yesu Persaud, a highly respected and prominent member of the business community on the occasion of the official launching of the Guyana Times on 5 th June, proposed that other businesses should similarly benefit, His Excellency the President saw it fit to respond in a hostile manner.

“The Private Sector Commission believes that, in the circumstances, it would be appropriate for a public apology to be issued,” the statement said.

The PSC said that it looks forward with considerable interest to the steps which would now be taken by Government to further amend the tax laws in order to give legal expression to the intentions declared by Government in the Ministry’s statement with regard to the granting of tax concessions to investors.

The Ministry of Finance in a statement on Sunday said that the current Fiscal Enactments (Amendment) Act 2003, contains various inaccuracies and omissions in relation to both the sectors and regions identified.

This was in response to a Stabroek News article based on the findings of columnist Christopher Ram, who raised a number of issues about the concessions, mainly questioning the legality of the two QAII pioneering industries as identified by the President. Ram had stated that the two industries – pharmaceuticals and textile manufacturing – were not covered in the sectors eligible for tax holidays.

It said that it was Government’s intent when the Act was amended in 2003 to maintain the element of pioneer industries and that while the law sought to make this specific in terms of geography and sector, on both scores the law contains omissions and inaccuracies, and the lists articulated in the Act should have been illustrative and not exhaustive.

The statement said that additionally, the current wording in the law does not provide for tax holidays for infrastructure projects like the Berbice Bridge tax concessions which had to be provided for via special legislation, and the upcoming Amaila Falls Hydro project which would also very likely require concessions in a similar fashion to the Berbice Bridge.

Comments

About Comments

We thank all readers who have contributed to this site since its relaunch. This section of the website is intended to provide a forum for reasoned and reasonable debate on the newspaper's content and we hope that readers make full use of it as many have already done.

The comments section is an extension of the newspaper and what it has become well known for over its history: accuracy, balance and fairness.
In recent weeks a large proportion of the comments posted have contained attacks on other users, slander, coarse language and profanity. Comments of these types will be deleted.
Comments which contain gratuitous and incendiary references to race and ethnicity will be struck.
We reserve the right to edit/delete comments for length, any libel and taste. We moderate all comments so be patient while your message waits to be approved.
Curious about the little images next to each commenter's name ? Go here and sign up using the same email address you used to register for Stabroeknews.com then upload your image and confirm it.

24 Responses to “Private sector awaiting gov’t steps to legitimize Queens tax concessions”

DAFA 75
on June 18th, 2008 8:13 am

Look as a Chartered Accountant , and a Banker , I am appalled, you cannot change the tax law to build a case for tax concesions for any company retroactivly. You can make amendments to the tax law that will come in to force at a certain date in the future, but up until that point the company is bound to operate withing the current legislation.

I use to think very highly of the finance minister, since his days at QC , Come on Dr Singh you are much better than this.

[Reply to this]
justice4all
In reply to the above comment on June 18th, 2008 8:39 am:
I made the very argument in an earlier post. You cannot use ipso facto legislation to criminalize people, or to grant benefits to Corporations and companies. Even if it was possible legally, it would stink of impropriety.

[Reply to this]
critik
In reply to the above comment on June 18th, 2008 1:42 pm:
I wonder whose ignorance is being now exposed. rrr!! it’s arrogance this time around seeing that there was knowledge of having to make this amendment before the deal was struck.
Do we remember the reform to cater for the Buddy’s subsidy?
Anyhow it’s good to have a best friend as El Presidente of a country.

jerry
In reply to the above comment on June 18th, 2008 2:13 pm:
Dafa just an observation. I’m living in Ontario and in Feb 08 the ontario gov’t amended the tax law retro to January 2007. Specifically, the amended the tax law relating to capital taxes, whereby companies no longer have to pay capital taxes and that is retro to Jan 07. And as far as I understand companies that paid capital taxes in 07 will be able to apply for a refund. I’m not saying ur incorrect.

[Reply to this]
BOEING777
In reply to the above comment on June 18th, 2008 3:03 pm:
They did that to lower corporate taxes.
They did not do it to fix a deal that was ILLEGAL!!!!!

jerry
In reply to the above comment on June 18th, 2008 3:51 pm:
I know that Beoing. Dafa said in his post above that you can’t change tax law retroactively. I was just pointing out what happened in ontario.
BOEING777
on June 18th, 2008 8:30 am

I hope the people are paying close attention to what this dictatorship is doing.

How can this be legal? What is the opposition doing about this?

This is over the top and everyone must voice outrage!!!

As, I have always maintained, friends and loyalists to this regime can have anything for no cost to them.

SHAMEFUL

[Reply to this]
pepie
on June 18th, 2008 8:52 am

Listen…. the President should not publicly apologise to Yesu Persaud and that’s final. I see no reason for a Public Apology. There are many worse things that occured during his Presidency which he did not apologise for. So why now? What is so special about Yesu? It was reported in this very paper that the President at a rally told his supporters that if they don’t support the PPP, the missing guns will end up in the hands of certain section of the society and this was a direct attack on persons who hold different views to him and look different to him. In my opinion that was worse than what he said to Yesu because he demonized everyone in that group, which he was referring to. So, if he is going to apologise publicly then he must apologise for all the wrongs he has done as President.

However, i think a private apology is good if he feels the need.

[Reply to this]
Carl
on June 18th, 2008 9:28 am

The arrogance of Bharrat Jagdeo is obnoxious and nauseous. The man presides over one of the poorest countries in the world and acts as if he were king of the universe.

He groundlessly dismisses his learned critics, attempts to chide the U.S., and believes that he knows more than people who were practicing their craft while he was running around in the cow pastures of the East Coast.

Look, he ought to publicly apologize to Yesu Persaud. Perhaps by doing so, he will begin to pave the way for an easier life after he leaves office.

[Reply to this]
roliescarface
In reply to the above comment on June 18th, 2008 7:28 pm:
Excuse me, I would like to know what you mean by saying he’ll live an easier life after he leaves the office. Are you saying that his life might be in danger? Are you saying that you know of person(s) who might want to harm him?
Almost all decisions are left upon him. He makes mistakes like everyone else and trust me if he was king of the universe there would be no need for all this demanding of public apology. Yesu would actually have to tuck his tail in and be quiet. Who are these learned critics you speak of and what attempts to chide the U.S.? Give me a few examples. Also, I would like for you to name a few of the practicing craft members. I can assure you those very practicing craft people that you speak of are either dead or old. Jagdeo on the other hand, was studying overseas about the current and up to date politics. Not only that he’s got a business degree. A lot of people ran around in the cow pastures when they were little, not just Jagdeo.

[Reply to this]
opgy
on June 18th, 2008 9:57 am

Duh is Guyana Peoples, deh can do anyting!! HaHa

Bvbocan - like dem people seh, now yuh gata apologise to Yesu too!! Yuh speak outta tun gyal!

[Reply to this]
Raj
on June 18th, 2008 10:09 am

The President should not apologise to Yesu. Yesu has been a selfish businessman. He sees business only one way- his way.

[Reply to this]
critik
In reply to the above comment on June 18th, 2008 1:52 pm:
Talk about selfish and ‘one track’ thinking????
How less selfish is Mr President??
Who always talks about ‘my government?’
Does Jagdeo own the government?

[Reply to this]
roliescarface
In reply to the above comment on June 18th, 2008 7:30 pm:
No he doesn’t own the government but as long as he’s president it is his government. Let us not forget that Jagdeo has a degree in business and knows what he’s talking about.
CFO
on June 18th, 2008 10:36 am

He should apologise - he was wrong and should have the balls to say so!

My main concern with the PSC statement is that they will now look “forward with considerable interest to the steps which would now be taken by Government to further amend the tax laws in order to give legal expression to the intentions declared by Government in the Ministry’s statement with regard to the granting of tax concessions to investors.”

Sounds like a rubber stamp to the amendments to me. Might be positive for Guyana but this is going about it entirely wrong.

[Reply to this]
popeoplefedup
on June 18th, 2008 10:38 am

Bets on everyone, Jagdeo will NOT apologize to Yesu or anyone.

Do you not realize that when you are arrogant, especially this deeply, that the very thought of an apology or any other humiliating gesture, is a catalyst for increased superciliousness?

Jagdeo from the PYO days was a very humble person, but I believe in his ascension of power, he had to transform from that meekness to assertiveness to justify his strength as a leader. Leaders are normally assertive, but I believe in that course of transformation, the thin line between judicious assertiveness and haughtiness got blurred.

There is no turning back now, so don’t expect any apology.

For Jagdeo to apologize would be to lose, not endear himself to a self respecting public.

[Reply to this]
Alli
on June 18th, 2008 10:39 am

In view of the fact that Jagdeo acted outside of the tax law (he broke the law) therefore like every other Guyanese citizens he should be made to bear the consequences. Controversial or not (in his own words referring to himself as being controversial) that is plain outright stupid and intellectually sterile again his own words and not controversial given his public childish tantrum he threw when Mr. Yesu Persaud made a suggestion that consideration should be given for other businesses in the private sector to encourage more investment in the future.

He should made a public apology.

I hope that given the circumstances that are clearly coming out of this fiasco in which the President are giving favors to his personal friends that Guyanese be encouraged to boycott his business in the same way that the former Minister of Home Affairs (Gail Texeiera) were urging Guyanese to boycott drugbarons businesses.

Enough is enough, Guyanese should stand up and demand answers

[Reply to this]
BOEING777
In reply to the above comment on June 18th, 2008 3:04 pm:
Can we get an attorney to file suit? …. just wondering LOL

[Reply to this]
Alli
In reply to the above comment on June 18th, 2008 5:25 pm:
definitely, but not any of those in Guyana. the only thing is according to the BURNHAM CONSTITUTION JAGDEO cannot be taken to court, you will have to wait until 2011.
Imausar
on June 18th, 2008 2:47 pm

Stone80,

Are you threatening the bloggers with this comment?

“It seems like the fine man network have a lot of supporters on this site. It is just a matter of time before they have to smell daisy by the root.”

I hope not!! Because it will be a sad day for freedom of speech; I would suggest that we free ourselves form hate, fear and false pride; and for once, be constructive with our actions ansd comment/s for the better of all Guyanese and justice.

We are all adults, and in most cases commenting from a logical point of view, not for or against anyone but with an open mind. With respect!!!

Hotep.

[Reply to this]
roliescarface
In reply to the above comment on June 18th, 2008 7:39 pm:
I totally agree with you. Most comments I’ve here seems to base on racism, ignorance and arrogance. I have said a few times that it’s the people who have to make Guyana a better place for themselves. We have to unite and put put hate and anger behind us in order for us to move forward.

[Reply to this]
ms guyana
on June 18th, 2008 3:02 pm

that will be the day
dream on PSC

[Reply to this]
YesRasta
on June 18th, 2008 7:52 pm

Mr.Bharrat Jagdeo has failed in Home Economics, Micro Economics and Macro Economics.However, it is not too late for him to attend the tax course that will be held in July 2008.

I would suggest that Mr. Winston Brassington should ensure that Mr.Jagdeo is a registered participant in this course.So next time when he opens his mouth,he can speak with authority.

[Reply to this]
june fortson
on October 23rd, 2008 3:18 pm

can we all just get a long

[Reply to this]