Identifier
Created
Classification
Origin
07GEORGETON514
2007-05-23 19:08:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Georgetown
Cable title:
VAT TX BRINGS IN THE MONEY FOR GUYANA
how-toVZCZCXRO5377 PP RUEHLMC DE RUEHGE #0514/02 1431908 ZNR UUUUU ZZH ZDK P 231908Z MAY 07 FM AMEMBASSY GEORGETOWN TO RUEHC/SECSTATE WASHDC PRIORITY 5282 INFO RUEHLMC/MILLENNIUM CHALLENGE COP PRIORITY
UNCLAS SECTION 02 OF 02 GEORGETON 000514
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EFIN PGOV ETRD GY
SUBJECT: VAT TX BRINGS IN THE MONEY FOR GUYANA
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* Missing Section 001 *
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GEORGETOWN 05230514 002.2 OF 002
MONETARY FUND ARNED AGAINST LOWERING THE TAX RATE OR ADDING
MOE ZERO-RATED ITEMS TO THE EXISTING EXEMPTIONS.
¶6. COMMENT: AS A CANDIDATE FOR MILLENNIUM CHALENGE
ACCOUNT (MCA) FUNDING, GUYANA HAS REPEATEDLY FAILED FISCAL
POLICY OBJECTIVES. WITH THE INSTITUTION OF THE VAT, GUYANA
HAS WIDENED THE TAX BASE AND INCREASED REVENUES FOR THE
GOVERNMENT, PROMOTING A MORE TRANSPARENT SYSTEM OF REVENUE
COLLECTION. THIS COULD PUSH GUYANA INTO THE RANKS OF HAVING
AN APPROVED MCA THRESHOLD PLAN, OPENING UP SOME $6.7 MILLION
OF ADDITIONAL DEVELOPMENT FUNDING TO ADDRESS FISCAL ISSUES
SUCH AS THE VAT.
ROBINSON