Dubbing it a people centered budget designed to stimulate economic activities and enhance the country’s infrastructure, at least two trade unions and the main private sector bodies are singing the praises for the $781.9B National Budget.
In a statement today, the Guyana Agricultural and General Workers Union (GAWU) which represents the majority of sugar workers, said the projects, policies and measures included in the Budget augur well for Guyanese, who stand to benefit from the ongoing economic development.
“We have taken note of several measures advanced by Budget 2023 to improve disposable income, bringing the aspirations of our people within reach, and to ensure that our people are safeguarded. Against that background, our Union welcomes the improvement in the income tax threshold,” GAWU said.
The trade union said the adjustments made to the income tax threshold should not be viewed in isolation as it alluded to the extension of the freight charges computation for imported commodities and the extension of the excise tax waivers on fuel.
“Those two measures together with the income tax adjustment equate to several billion dollars. Moreover, continued support to the electricity and water sectors to maintain tariffs despite rising operating costs are serious measures aimed at curtailing the cost-of-living,” GAWU reasoned. It also lauded improvements to the school grant, old age pension and public assistance.
With the Guyana Sugar Corporation (GuySuCo) in line to draw down another $4B from the Consolidated Fund, GAWU said the multi-billion-dollar allocation to the sugar company is in keeping with the Government’s commitment to return the cash-strapped industry to a state viability.
“It is apposite to recognize that the support comes after there were clear efforts under the former Government to paralyze the industry to the point of no return which, we believe, was in execution of its narrow, biased political agenda. This year, we note investments will be focused on improving the industry’s packaging capacity and furthering mechanization together will play a meaningful role in enhancing efficiency, augment revenue and diversifying the product base,” the union said.
In a separate statement, the Federation of Independent Trade Unions of Guyana (FITUG) said the budget sets the stage for a strong and secured future for all Guyanese.
“The budget, expectedly, addressed a gamut of policies and touched on every area of national life aimed undoubtedly at enhancing the well-being of the ordinary people. This is laudable especially given the several challenges that the Irfaan Ali Administration inherited on its assumption to office and the new difficulties that has since arisen,” the Federation said.
It pointed out that the adjustment to the income tax threshold will result in an additional 12,000 persons not being required to pay income taxes while putting over $3 billion in the pockets of the working class.
It noted too that increases in old age pension and public assistance stand to benefit the vulnerable.
“These sums we are sure will undoubtedly aim to reducing some of the burdens faced by our society’s vulnerable. The investment in our children with yet another increase to the Because We Care grant also brings further relief to our peoples,” it said.
FITUG anticipates that as the economy expands, additional improvements would be forthcoming.
Meanwhile, the Private Sector Commission (PSC), in a statement on Tuesday, said the policies proposed in budget will have far-reaching positive implications for every citizen.
“It is truly a people-centered and private-sector incentive driven budget fit for the purpose of growing and developing our economy. This is evident with measures aimed at improving peoples’ net salary and addressing cost of living rise, such as the increase in the income tax threshold from $75,000 to $85,000 monthly; maintaining zero excise taxes on fuel to absorb the impact of volatile fuel prices and the reduction in freight charges by extending the application of freight cost adjustment for the calculation of import taxes for a 12-month period,” the PSC said.
The Private Sector Commission said it is pleased that the budget featured no new taxes. It said that the measures such as the removal of the 14 percent VAT from the sale of residential properties, reduction in duty from 45% to 35% on the importation of new motor vehicles, and the replacement of the current tax rate with a flat rate of taxes of $800,000 on used vehicles will result in Guyanese saving big.
It also noted that the budget is not only designed to create jobs but businesses as well with some $584.2B allocated to the Small Business Bureau and the Small Business Development Fund.
“The government is introducing several measures to create jobs, such as encouraging businesses to invest in Guyana, increasing the availability of credit for small businesses and creating new job opportunities in the energy and renewable energy sectors. The budget also increases funding for skills training and vocational education, which will help to create a more competitive labour force,” it pointed out.
Investments in education to the tune of $94.4B and the Health Sector to the tune of $84.9B, the PSC said, have not gone unnoticed, noting that the investments will result in greater access to educational and healthcare services across the country.
The Guyana Manufacturing and Services Association (GMSA) has also extended its support of the budget.
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