Philosophy of Bringing Relief and Prosperity

The main opposition People’s National Congress Reform (PNCR) has announced its intention to provide a tax-free threshold of GUY$400,000 (approximately US$1,600) for individuals and a tax allowance should it form the government following the regional and general elections scheduled for next year.

Understanding the Proposal

The PNCR’s proposal is based on "our moral duty to end poverty and by sound financial and economic reasoning." The party believes that this move will have a significant impact on over 210,000 workers, and when combined with its pledge to raise the salary of all government employees by 35% and its social programs for all, will have a positive impact on poverty, economic insecurity, inequality, opportunity, and economic dynamism.

How it Works

The PNCR’s plan will set a tax-free threshold of GUY$400,000 per month, which will also serve as a tax allowance. This means that individuals who earn GUY$400,000 or less per month will not pay taxes, and those who earn higher will pay taxes only on the amount above GUY$400,000 per month.

Benefits

The PNCR believes that this proposal will have the following benefits:

Help reduce poverty and economic insecurity as a government’s moral duty to guarantee citizens a decent standard of living and to respect and ensure their economic and social human rights.
Help create a demand-driven economy where the country’s productive capacity would expand in response, aided by the introduction of targeted facilitating conditions.
Reduce the well-documented costs of doing business in Guyana; increase corporate tax revenues; increase tax compliance by encouraging high-income earners to pay their full contributions; increase the collection of Value-Added Tax (VAT) as consumers spend more on goods and services; and create a sense of shared prosperity and shared destiny.

Cost and Affordability

The PNCR believes that its proposal is affordable, citing an estimate that the government would receive GUY$74 billion in personal income taxes in 2023, which is under 4% of government expenditure.

Inflation and Dutch Disease

The party also addressed concerns that a large increase in the tax-free threshold and allowance could trigger inflation and the Dutch Disease, saying, "Where are these concerns of the government now that it has been forced to give the people more money?"

Philosophy and Future Plans

The PNCR believes that its philosophy of putting people first and at the center of development is not only morally superior but also a better economic development model. The party’s leader, Aubrey Norton, has also announced plans to guarantee citizens a decent standard of living and to respect and ensure their economic and social human rights.

Conclusion

The PNCR’s proposal to provide a tax-free threshold and tax allowance is a bold step towards reducing poverty and economic insecurity in Guyana. With a focus on putting people first and creating a demand-driven economy, the party believes that this move will have a positive impact on the country’s economic development.

FAQs

What is the tax-free threshold?
The tax-free threshold is GUY$400,000 per month.
What is the tax allowance?
The tax allowance is the amount above GUY$400,000 per month.
How will this proposal impact poverty and economic insecurity?
The proposal will help reduce poverty and economic insecurity by guaranteeing citizens a decent standard of living and ensuring their economic and social human rights.
Is this proposal affordable?
Yes, the PNCR estimates that the government would receive GUY$74 billion in personal income taxes in 2023, which is under 4% of government expenditure.
Will this proposal trigger inflation and the Dutch Disease?
The PNCR believes that the benefits of this proposal outweigh the risks of inflation and the Dutch Disease.