The Alliance For Change (AFC) today warned that if it forms the next Government it would revisit and if necessary impose sanctions concerning the Georgetown Marriott Hotel Agreement between the Government of Guyana and Atlantic Hotels Inc.
“In any agreement with investors the interest of Guyanese companies and Guyanese citizens must be put first. The provision contained in this Agreement gives everything away to Marriott Hotels and nothing to our people. With a 10 year tax holiday Marriott Hotels would be paying no Corporate Tax, no Withholding Tax, no Property Tax, no tax on consumables and capital renewal for ten years!”, the party said in a statement.
It argued that by contrast local businesses in the hotel industry have no such concessions. It said that local hoteliers had contributed to the national economy for years and have invested substantial sums in their businesses, some with long term bank financing.
“These hoteliers have contended that if Marriott Hotels wants to operate in Guyana it ought to invest its own money and operate on the same conditions as local Hotels. The specially favoured concessions given to Marriott Hotels puts local hotels in a highly disadvantageous and uncompetitive position, and may very well be in breach of the Competition and Fair Trading Act and Caricom Competition Commission Rules”, the AFC stated.
It also stated that the Marriott Hotels is not creating new employment as was intended but is poaching employees from other hotels by offering more than 50% hike in salary.
“This hike in salary is being charged to the Guyanese taxpayers as are the salaries of Marriott’s entire expatriate executive management team. Marriott has earned no income since it appointed its General Manager last June yet all branding cost, electricity, security, and salaries are being paid by Guyanese taxpayers”, the AFC lamented.
It said that while Guyanese have to protest for long periods for a 5% salary increase, the Government here is paying the “fat salaries” of Marriott’s management.
“In fact, the obscenity is made even worse when taxes are deducted from Guyanese workers before they even receive their salaries and companies are hounded by GRA to pay VAT and all sort of taxes when Marriott Hotels is exempted. Why this discriminatory application of our tax laws? The general rule as to the best application of tax laws is, uniformity”, the AFC asserted.
It charged that the agreement represents a blatant abuse of public office.
