Nandlall skewers budget for overreliance on taxation

PPP/C MP Anil Nandlall yesterday dubbed government’s expectation that the proposed national budget for this year would stimulate growth “courageous,” while criticising what he called an overreliance on taxation.

“The net is so wide, sir, it captures from man to mule,” Nandlall said, causing laughter to erupt during his contribution to the budget debate in the National Assembly.

The $230B budget was presented by Finance Minister Winston Jordan with the theme ‘Stimulat-ing Growth, Restoring Confidence: The Good Life Beckons.’

Nandlall, however, noted that the country is recording its lowest economic growth in the last ten years.

Anil Nandlall
Anil Nandlall

Noting that the public has a different reality to the meaning of high growth rate, he added that he spoke with a wide cross-section of Guyanese who all described 2015 as a “horrible year.” He said among the complaints were that money was not circulating, that their businesses performed badly and that they experienced the “worst Christmas in decades.”

Nandlall noted that economic growth results from consumer spending and investments. He said he looked at the budget to see what would stimulate growth. “Of course there will be government spending… but we also know and the minister will know that government spending alone cannot propel the economy forward…cannot bring the growth that he aspired to achieve,” he said.

According to Nandlall, he is still to find the measures in the budget that will inspire the growth that the minister speaks of. He said that from his observation the opposite is contained in the budget. “There is an overreliance of taxation in this budget,” he said to chants of “taxation budget.”

He said all the proposed laws that were read by the minister are designed to impose additional taxes on the people.

He added that from 2008 to 2014, there had been no additional taxes by the former government and that every year while in office it had designed different measures to reduce the burdens.

He charged that what is contained in the proposed budget is not the type of model that would “stimulate growth that the minister aspires to achieve because when you have increased taxation Mr. Minister, and you don’t raise salaries at a proportionate level, then you are taking away from the consumer the disposable earnings. So how are we going to get this growth Mr Minister?” he asked, while calling for Jordan to review what he said was the taxation burden being imposed “on the backs of the people of this country.”

He mentioned too the proposed restrictions on importation of older vehicles and he noted that auto dealers have already said that car prices will be increased by about $2M.

Nandlall also said that the budget also lacks tax concessions that would attract investments and encourage consumer spending.

Jordan had announced that the Tax Act would be amended to ensure that prior to the issuance of all licences for public use, including licences to conduct forms of trade and business, the applicant has complied with his/her obligations to file annual returns and paid, or has made arrangements to pay, all taxes due and payable.

Nandlall, however, said this move will lead to “a bureaucratic nightmare” and would create a new “breeding ground for corruption.”

He also accused the minister of not looking to build the institutional capacity of the Guyana Revenue Authority (GRA) to deal with such a measure. “At the same time you have to increase the state’s ability to collect” the taxes, he stressed.

Nandlall also accused the government of engaging in the same activity for which it has criticised the former PPP/C government.

He said there had been a long and dedicated campaign by government members while in opposition to remove billions from various agencies and place them in the Consolidated Fund. “All manner of arguments were advanced. They said it was unlawful. They said it was unconstitutional. They said it was being kept in those funds for corrupt purposes,” he said, while recalling that a motion was filed in the high court challenging the legality of the former government’s actions. “Now, sir, they are in government, nine months after and they are refusing to transfer these monies. We call upon them sir to transfer every single cent in the extra budgetary funds in the Consolidated Fund,” he shouted to be heard above the loud banging of desks. He added that the Lotto Fund alone has over $28B but only $1B was transferred according to Jordan.

Nandlall also called on government to observe procurement laws and desist from hand picking contractors without subjecting them to a transparent process. “They cannot hand pick contractors and give them millions and millions of dollars of contracts without any transparent process and in disregard of the procurement laws,” he said to the thunderous banging of the opposition desks.

Meanwhile, Nandlall, who was instrumental in the establishment of the Special Organised Crime Unit (SOCU) as Attorney-General, called for it to be reviewed. He premised his call on what he says are reports being received that the unit is violating the rights of people.

“It is inimical the way that it is conducting its business. It is inimical to the economic interest of this country. People’s monies are being seized in a whimsical manner. Their jewellery are being taken from them at the airports. That cannot be stimulating to growth,” he said.

“We are asking for a review of SOCU,” he said, while noting that the unit was set up to examine and investigate “genuine” cases of money laundering and terrorism. “Not to be unleashed on the people of this country,” he declared.