Tax rates and allowances should be rebalanced to make system equitable

Dear Editor,

I refer to your recent coverage of government’s interventions to ease the cost of living burden on Guyanese. One of the measures includes a $4,000 tax free cost-of-living allowance for government workers who earn $50,000 and less. Quoting from the GINA release dated May 7, 2008, President Jagdeo said: “Also, I have approved a temporary cost of living adjustment to be paid to government employees whose basic salary is below a specified threshold. This initiative will see a temporary adjustment of $4,000 per month free of income tax during the months of May to December 2008.”