Our tax reform plan is divided into four main areas:

Rationalisation and Review
Currently, the increased tax revenue over the past decade and a half has been primarily at the expense of the working class people and small businesses, while large companies and wealthy professionals have been provided with loopholes and exemptions that have been poorly policed and of questionable value.  The introduction of VAT at 16% under the PPP and the placement of VAT on electricity and data (as well as a wider classification of goods and services) under the Coalition has disproportionately affected the average Guyanese while little evidence-based rationale has been given for companies like Rusal and Exxon enjoying massive tax concessions.   We will push for a Tax Reform Commission (TRC) that examines the current tax regime and reforms it to better benefit Guyanese on an equitable basis.

Relief
We believe that working class people have been burdened by excessive taxation, particular within the past five years and need relief.  Without prejudice to the recommendations of the TRC, our consultations and research tell us that we can have a phased reduction of VAT to 10 percent immediately in 2020, with a further reduction to 8% (inline with other Caribbean jurisdictions) from 2025.  We also believe that the non-taxable income tax threshold can be raised to $120,000 in the short term, and that the removal of VAT from data and utilities will put more money into the hands of ordinary people at the end of each year.  We also intend to lower the import duty on vehicles so that more Guyanese citizens can have access to their own personal transportation.

Small and Medium Business Stimulation
We believe that it makes no sense for large foreign companies to receive massive tax holidays and duty free concessions while small and medium-sized enterprises are not afforded the same.  We are proposing that all SMEs receive a one-year tax holiday beginning in fiscal year 2021.  From 2022, we propose a further six-month tax holiday for small and medium-enterprises owned by persons under the age of 30 as well as single mothers.

Investment Incentives Reform
We believe that the practice of tax and duty incentives for foreign investment is not evidence-based and poorly policed, resulting in little or no direct benefits to Guyana.  Examples abound in companies like Bosai, Bai Shan Lin, Vaitarna and Rusal.  We propose that incentives should be evidence and perform-based with such companies receiving rebates based on their adherence to the conditions under which they are applying for incentives, including job creation and the introduction of value-added processes to their operations.