Page 23 - GMSA 2017 AR Print for flip1

GOVERNANCE & ADVOCACY

GMSA Member Mohindra Chand conveys a point at
GMSA Budget Presentation

According to the GMSA President, “The services sector Also, consistent with Government’s call to support local
accounted for 49 percent of GDP at mid-year with products, the GMSA advocated for public procurement to
contributions from ICT, transportation and storage, financial consider locally manufactured items – pharmaceuticals,
and insurance activities, public administration, education, aggregate and quarry products, agro-produce and juices,
health and social services, real estate activities and other etc. especially when such products can meet standards and
services. Wholesale and retail trade was the biggest are price-competitive. The Association also advocated for
contribution followed by transportation and storage.” the application of the Small Business Law by the Government
which states that 20 percent of public spending should
It was against this backdrop that the GMSA made proposals be towards procurement of goods and services from local
aimed at turning the fortunes of the manufacturing and small businesses.
services sector around as well as the wider economy as it
shared the concerns of the wider private sector regarding Under energy, the GMSA lobbied for the removal of VAT
economic performance thus far in 2016 and the decline in on electricity, adjusted/reduced tariffs for manufacturing
the economy. entities based on performance thresholds. It argued that
in the short to medium term, manufacturing companies
The GMSA also expressed the view that the private sector should be granted tax waivers on fuel used in electrical
must be the engine of growth as it suggested that Budget power and thermal (boiler) power generation (much like
2017 should stimulate the economy and put the country the mining sector). The GMSA also called for incentives
back on track to 5 percent or more growth. for renewable energy options such as gasifiers to utilise
biomass, eg in wood processing and agro-processing (rice
As such, under the area of taxation, the GMSA proposed husk, etc) while stating that accelerated initiatives aimed
reviewing and possibly removing VAT on electricity (and at grid improvements (transmission and distribution) and
water and education); the reversal of the policy for items harnessing renewable energy as well as other options in
that were transferred from Zero Rated to Exempt; the timely order to have reliable, stable and affordable energy were
settlement of VAT Refunds; the consideration of a reduction absolutely necessary.
of VAT on locally manufactured goods; and the expansion
of VAT collection on a wider cross-section of businesses to The Association said the establishment of Special Economic
level the playing field. Zones in Guyana for boosting manufacturing and value-
adding where special incentives and facilities would apply
In terms of accessing finance, the GMSA proposed would be helpful.
narrowing the variance in the lending and borrowing rates
instituted by the banking institutions and improving access Under Standards and Regulations, and Security, the GMSA
to affordable financing such as improved performance of lobbied for the strengthening of standards and regulatory
the Small Business Bureau. bodies, eg GNBS and Government Analyst –Food and
Drug Department, which are critical to ensuring consumer
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