MOTION-- INTRODUCTION OF THE VALUE-ADDED TAX (VAT)



WHEREAS the PNCR-1G had always supported in principle the introduction of (VAT) to replace a number of existing taxes with the objective of widening the tax base and bringing within the tax net persons and supplies which hitherto escaped payment of taxes;

AND WHEREAS the introduction of the tax was expected to reduce the burden of taxation on those categories of workers, such as teachers, policemen, nurses and public servants, who were captive targets of the tax system;

AND WHEREAS throughout all stages of the passage of the relevant Legislation the PNCR-1G suggested a reduction of the proposed rate, the zero rating of essential commodities, a phased implementation of the tax and a deferral of the date of implementation beyond January 1, 2007;

AND WHEREAS the Government is in possession of information which demonstrates that to achieve their stated objective of revenue neutrality the rate of the tax could be lowered;

AND WHEREAS the implementation of the (VAT) on January 1, 2007 has led to a dramatic rise in the cost of living that is decimating the working poor and their families, with the harshest effects being felt by the unemployed, pensioners, unwaged housewives and low waged workers, resulting in a deepening sense of desperation among citizens,

BE IT RESOLVED THAT:
(1) A special all-Party Parliamentary Committee be established immediately to make recommendations for the reduction on the rate of the tax, for widening the range of zero rated and exempt supplies and a phased implementation of the Value-Added Tax;

(2) The Government immediately implement significant levels of salary increases for those categories of workers most adversely affected by the implementation of (VAT);

(3) The Government promptly, but no later than six weeks of the passage of this Resolution, establish a National Commission on Tax Reform to review of the tax system and make recommendations for, inter alia, the raising of the income tax threshold and reduction of income and corporation taxes;

BE IT FURTHER RESOLVED THAT:
The membership of the aforesaid Commission includes various stakeholders, including, the Guyana Trades Union Congress, the Private Sector Organisations, the Religious community, and other social sector organizations.
(Notice Paper No. 87 (M18 Opp 6) published on 2007-01-23)

Date for Order Paper: 2007-02-05

NINTH PARLIAMENT OF GUYANA � FIRST SESSION (2006-2007) NATIONAL ASSEMBLY NOTICE PAPER NO. 87 Date Received: 2007-01-19 Member Giving Notice: Mr. Robert Corbin, M.P., Leader of the Opposition MOTION INTRODUCTION OF THE VALUE-ADDED TAX (VAT)