Tax-free salaries, waivers for select few needs to end - Goolsarran

Tax-free salaries, waivers for select few needs to end – Goolsarran

Apr 03, 2017 News

Since the coalition administration assumed office, it has implemented a number of tax measures, all with the aim of making the system more equitable while catching those who refuse to pay their fair share of taxes.
While its approach may be welcomed, there are some who believe that if the government is indeed serious about having a fair tax system, then the practice of tax-free salaries and/or waivers for a select few, needs to come to an end.
This perspective was supported in a comprehensive report prepared by the Tax Reform Commission that was established by the government.
The Commission included Chartered Accountant, Christopher Ram; Commissioner General of the Guyana Revenue Authority (GRA), Godfrey Statia; NICIL’s Chairman Dr. Maurice Odle and Economist Dr. Thomas Singh.

Chartered Accountant, Anand Goolsarran

With respect to tax waivers granted to certain individuals, such as the President, Attorney General, Chancellor, Chief Justice and Auditor General, the Commission members said that “a rationale or justification is hard to find, especially since it sends the wrong signals to those persons whom the Government is hoping to rope into the tax net”.
Furthermore, the tax advisors observed that various forms of tax exemptions have also been used to favour Members of Parliament and to provide non-tax benefits to public servants to compensate for what is perceived to be inadequate salaries. However, the advisors said that it constitutes discrimination, which causes dissatisfaction within the private sector.
Lending support to the aforementioned is Chartered Accountant and Former Auditor General, Anand Goolsarran.
The Financial Analyst said, “We should end the practice of granting tax-free salaries. It is simply not fair for the selected few to enjoy such benefits while the rest of us are made to pay our fair share of taxes.”
Goolsarran also expressed the view that the GRA has the potential to double its revenue assessment and collection without the imposition of any new taxes; and noted that the funds garnered will be more than enough to meet the Government’s expenditure.
In such circumstances, instead of a budget deficit, Goolsarran contended that there will be a budget surplus.
“We would also be in a position to scale back on the extent of borrowings, with consequent reduction in the public debt,” expressed the anti-corruption advocate.
Furthermore, Goolsarran said that the argument that some people do not pay their share of taxes is no justification for imposing new taxes since those who honour their commitments are made to bear the additional tax burden.
“It’s like Peter paying for Paul.”