Georgetown: The Guyana Public Service Union (GPSU) says it is unimpressed with the provisions made in the recently announced Budget 2013.
The institution describe some measures applied in a “minuscule manner” by the Minister of Finance Ashni Singh.
Head of GPSU, Patrick Yarde said they advocated for a minimum increase of 50 percent in all pensions payable by the State and that the National Insurance Scheme (NIS) be encouraged to do likewise.
However, in the 2013 budget, Yarde said the, “Government proposes a hike in only old age pensions by a miserly $2,500, while ignoring other pensions that are currently paid to persons, who serviced the state but are condemned to abject poverty while in retirement because of inflation and other factors”
Yarde said that one would think that Government’s stated concern for the wellbeing of all citizens would motivate it to make more realistic and generous provisions to sustain its dwindling population base, including the unfortunates that gave their all to the sustainability of state-run institutions.
The union head said suggestions were made for tax reform in Guyana to reduce the level of taxation being borne by salaried workers, while widening the tax net by including measures to make tax evaders more compliant. The GPSU proposal included the increasing of the tax threshold to $100,000 and the reduction of the income tax rate to 20 percent on taxable income. The Government’s response however, he charged, was to propose a miserly 2.33 percent reduction, which is the net effect of a token Pay As You Earn (PAYE) decrease of 3.33 percent and an increase of the NIS rate by 1 percent.
“This in effect has no effect on the salaries and wages of the majority of public servants, whose salaries are pegged below the $50,000 tax threshold and offers a paltry relief to the remainder.
The recommendation by the Finance Minister for increasing the property tax ceiling is commendable,” Yarde admitted.
“Even though this would not benefit the majority of salaried workers and mortgage payments for first time home owners to be exempted from tax.”
Yarde continued that, “The Minister proposed that only the interest on mortgage payments for this group to be tax deductable, and even though this could be considered a step in the right direction, it is insufficient to motivate low and middle income earners to invest in their own homes.”
GPSU is therefore of the view, Yarde said, “That the failure of the Government to fully implement the recommended measures, which at minimum would ease some woes of Public Servants (past and present), other employed poor and elderly unemployed, is nothing less than a charade, where our citizenry are used as “pawns” to further special interest ties and is insensitive and uncaring to the plight of the masses.”
“A few tidbits are dangled at the people of Guyana, clearly with a motive,” Yarde opined. “During the last elections and many previously, much was promised, by both Government and Opposition, in terms of bettering the livelihood of the masses. Today, after significant lapses of time and broken promises, much is desired to enable the masses to enjoy the comforts craved during their lifetime, as a selected few benefits in a timeless routine.”
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