Friday, September 21, 2007

Why such large exemptions?

http://www.stabroeknews.com/index.pl/article?id=56529101

Why such large exemptions?
Stabroek News,
Wednesday, September 19th 2007

Dear Editor,

I have read in your newspaper an article which reported on the tax
exemptions granted to various companies operating here ('GT&T, Barama
top beneficiaries of tax exemptions' SS, 9.9.07). Topping this list is
the GT&T which enjoyed a whopping almost $1.7 billion (yes billion)!

This is a company that, until the arrival of competition in the form of
Digicel (expect more, get more) was comfortable in exploiting Guyanese
consumers. They now clearly have to reform themselves as Digicel has
proven to be a boon for consumers.

The other shocking revelation was to learn that Barama Company Ltd
benefited from over $300 million in exemptions.

This is the same company that came here promising to engage in plywood
and other forms of value-added production. Some 15 years later,
however, they have drastically reduced plywood production and are
exporting logs by the shipload. All this while they continue to
brazenly declare that they are not making profits even as they continue
to exploit our local labour.

How can the government justify giving such a company such huge benefits
and at the same time impose a crushing VAT burden on us?

Can someone in authority (not Ms Anita Wong or Mr John Da Silva) tell
us why the poor have to subsidise the rich? This is not what Dr Jagan
would have wanted.

Yours faithfully,

R Deonarine

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