The Private Sector Commission (PSC) has written the National Coronavirus Task Force (NCTF) calling for urgent relief measures in the wake of the COVID-19 pandemic including income tax relief for employees in vulnerable sectors and the removal of VAT on all food items.
A letter by the PSC to the NCTF follows:
Mr. Moses Nagamootoo Chairman
National Task Force – COVID-19 Office of the Prime Minister
Shiv Chanderpaul Drive Bourda
Georgetown
Dear Mr. Nagamootoo,
Re: Proposed Economic Measures to cushion the economic effects of COVID-19
With reference to the captioned subject, the Private Sector Commission hereby proposes the following measures for urgent consideration.
Background
Amidst concerns of the global pandemic of the COVID-19, countries around the world are grapling with the effects and taking precautionary measures to deal with the crisis which it engenders. To date, Guyana has five total (reported cases), four active and one death.
To Cushion Employees/citizens
1. Immediately raise the threshold to accommodate no taxation for employees in vulnerable sectors that were sent off the job from 65,000 to 100,000.
2. Removal of mortgage interests and payments for the period.
3. Reduce the spread at Commercial Banks. That is the difference between the lending rate and the savings rate of interest.
4. Removal of VAT from all food items.
5. Removal of VAT detergents and all household and medical and other cleansers.
6. Removal of VAT from essential services including data.
7. Temporarily remove the requirement to pay income and corporation taxes up front.
8. Emergency funding for small businesses at risk of closure.
9. Extend the time to pay utility bills and hire purchase debts.
10. Reduce the excise taxes on fuel.
