The Alliance For Change (AFC) on Saturday declared that it will make “strident” representation with the APNU+AFC governing coalition that the 14% VAT on private tuition not be continued in 2018.
Both the AFC and its coalition partner APNU have been pilloried for the introduction of the VAT on private tuition this year. However, at various fora and in public statements, senior government officials have said that the tax will stay at least for this year. This statement has been met with further opposition and protests by parents and students are likely to continue.
In a statement yesterday following a National Executive Committee meeting on Saturday in Linden, the AFC said it is cognizant and understanding of the difficulties faced by the APNU+AFC Coalition Government in raising revenue to meet the national expenditure for 2017 “at a time when there are difficult economic situations throughout the hemisphere”.
In what it dubbed The Linden Declaration, the AFC said that it recognizes that the Value Added Tax on private education tuition has been unpopular and has created some unexpected challenges for some parents of children and adult students attending private educational institutions.
“The party has listened to those who have been affected by this measure and having thoroughly reviewed all perspectives and extensively deliberated on the matter the party accepts that:
- education is a social good and, in ideal circumstances, tuition ought not to attract VAT
- that Budget 2017 has a significant deficit
- that the reduction of the VAT rate from 16% to 14% has resulted in a net revenue loss of GY$10B
- that unpopular tax measures are sometimes necessary to meet revenue targets
- in retrospect the measure ought to have benefitted from wider consultation
“The party therefore declares that it will make strident representation within the Coalition Government that it not to continue with this particular tax measure in 2018.
“Further, the party is of the view that the status of private educational institutions requires review and updating where appropriate and calls on the Government of Guyana to set up a task force to engage this matter in advance of the presentation of the Budget 2018 estimates”.
