Municipalities fall short in revenue collection for 2013

TaxGeorgetown: The six municipalities in Guyana: namely Corriverton, Rose Hall Town, New Amsterdam, Georgetown, Linden and Anna Regina,  having been expected to rake in some $2.8B for 2013, managed to collect only a meagre 52 percent of that budgetary figure as at November 30 last, according to Minister within the Ministry of Local Government and Regional Development (LGRD Ministry), Mr. Norman Whittaker.

Government has made available $65M to the town councils in the form of subventions, and has played a significant role throughout the year in helping them to maintain kokers and drains, Minister Whittaker pointed out.

Government has also helped to engage communities in clean-up exercises which have provided multiple opportunities for job creation.

Notwithstanding all it has done for the municipalities, the minister said, the LGRD Ministry is not about to take over the responsibility of the city council (M&CC), but would seek to intervene in its operation in order to render assistance.

Minister Whittaker said a significant reason for the municipalities’ poor showing in revenue collection was the recalcitrance of several private citizens and business entities in paying their rates and taxes.

Property owners in the city who are in arrears on payment of rates and taxes are being put on notice that they have until the end of December 2013 to regularize their situations to avoid City Hall being forced to pursue legal avenues to ensure rates and taxes collection from defaulters.

One legal means available to the City, Town Clerk Carol Sooba has said, is through parate execution; and this means could be pursued from as early as the beginning of 2014. Parate execution is a special procedure which would allow City Hall to advertise for sale properties on which substantial sums of monies are owed without taking the property owners to court.

Addressing the situation as regards defaulting tax payers, the Town Clerk said at a recent press conference: “A good many property owners are responding to our call to pay up, but we are calling on those who have not paid (to follow suit).” She said reasonable payment plans can be arranged, as she urged property owners to take advantage of those plans before the deadline for payment.

The Town Clerk said that while she is not happy to take such drastic action against people, the Council has serious financial commitments which must be honoured. Among these commitments are collection and disposal of garbage; maintenance of the cemetery; and renovation of the City Hall building, which requires substantial funding to halt its rapid deterioration.

“We are pleading with you not to go down the road of delinquency, but come in and discuss with us and honour your obligations,” Sooba said.

City Hall is currently preparing a list of major defaulting rate payers.