Before proceeding with today’s article, two recent news items are worthy of commentary. On several occasions we had bemoaned the fact that after ten years, two important modules of the Integrated Financial Management System (IFMAS) – Purchasing and Asset & Inventory – are still to be implemented. The developers of the software had debunked the previous Administration’s claim that these modules are only suitable for mature economies. They stated that: (a) they are unaware of any case where a government bought the system and did not use all of the modules; and (b) they had implemented IFMAS in countries with a far less mature environment than Guyana. Last week, the Minister of Finance disclosed that the Government has signed up for the upgraded version of IFMAS and that all the modules will be implemented in a phased manner. He also indicated that it may not be possible for the entire process to be completed until the end of the year. This is nevertheless good news, and one expects that there will be a passionate, sincere and dedicated effort to make it happen.
There are no constitutional provisions on the issue of exemptions from the payment of income tax on the salaries of office holders. However, Section 13 (a) of the Income Tax Act provides for the President, the Chancellor and the Chief Justice to be exempted from such tax. In addition, by Section 8 of the Audit Act 2004, the emoluments and other conditions of service of the Auditor General are to be the same as those of the Chief Justice, implying that the exemption also applies to the Auditor General. I have, however, been unable to find any legal support as regards income tax exemption on the Attorney General’s salary. One also recalls the former Commissioner General enjoying a tax-free salary, as well as several other office holders receiving tax-free US dollar salaries under a World Bank-funded project administered by the Ministry of Finance.
The Minister of Finance has expressed the view that all citizens should pay their fair share of taxes since they all benefit from the same social and other services provided for by the State, a view that this Column has consistently advocated. In the circumstances,
