Restating a commitment to abolish income taxes for low-wage workers, the opposition Peoples National Congress Reform (PNCR) has also proposed a $400,000 a month tax-free threshold that it plans to introduce once it gets into power. The party said the tax threshold increase alone would benefit more than 210,000 workers.

Over the weekend, the party offered clarification on its proposal, explaining in a statement that the move to raise the tax ceiling will serve as a tax allowance, producing the double impact where those who earn $400,000 a month and less will pay no taxes, while persons earning more than $400,000 a month, will only pay taxes on the difference.

“The party believes its proposal would move the needle in the lives of over 210,000 workers, including more than 54,000 from the public sector and another 150,000 from the private sector in addition to self employed persons.

Additionally, the opposition party has pledged to raise the salary of all government employees by 35% should it return to Government. It is also looking to implement a number of social programmes that it believes would address poverty, economic insecurity, and inequality. 

“We project that the tax-free threshold and tax allowance would (i) help reduce poverty and economic insecurity as a government’s moral duty to guarantee citizens a decent standard of living and to respect and ensure their economic and social human rights; (ii) help create a demand-driven economy where the country’s productive capacity would expand in response, aided by the introduction of targeted facilitating conditions. Those conditions would include reducing the well-documented costs of doing business in Guyana;” the PNCR said. 

Further, the party announced that it intends to increase corporate tax revenues; increase tax compliance by encouraging high-income earners to pay their full contributions, increase the collection of VAT as consumers spend more on goods and services, and create a sense of shared prosperity and shared destiny.

The PNCR believes that the proposed measures are practicable and sustainable.

Pointing out that in 2023, the Government received approximately $74 Billion in personal income taxes, the PNCR said should its tax-free threshold and tax allowance of $400,000 a month initiative take effect, it would initially cost around $40 to 50B annually – less than 4% of government’s expenditure. 

“We will depend on: (i) a redistribution of spending within the national budget, (ii) savings from reducing financial mismanagement and corruption, (iii) increased oil revenues from higher profit oil, (iv) higher interests from the NRF, especially as its investment arm kicks in, and (v) increased income from a larger non-oil economy,” the party said.

Its other proposals include a monthly childcare allowance of over $10,000 for all children up to sixteen years old, and an additional sum of $2,500 per month for nutrition. It said it will fully subsidize rent, mortgage, travel, water, electricity, and cooking, and will not only make the University of Guyana tuition free, but will provide students with a monthly stipend of 50,000. 

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