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FITUG Proposes Income Tax and Minimum Wage Reforms in 2024 Budget Discussions

Royan Abrams by Royan Abrams
10 October 2023
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FITUG Proposes Income Tax and Minimum Wage Reforms in 2024 Budget Discussions
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The Federation of Independent Trade Unions of Guyana (FITUG) recently engaged in discussions with the Guyanese Government to contribute to the formulation of the 2024 National Budget. The meeting, spanning nearly two hours, covered a wide range of topics.

FITUG’s delegation, led by President Carvil Duncan, included Vice President Sherwood Clarke, General Secretary Dawchan Nagasar, Treasurer Seepaul Narine, and Executive Committee members Aslim Singh, Porandatt Narine, Taramattie Dyal, and Gordon Thomas.

Prime Minister Mark Phillips led the government team, which included Finance Minister Dr. Ashni Singh, Minister of Public Service Sonia Parag, and representatives from the Ministries of Labour, Agriculture, and Finance. Discussions primarily focused on labor rights, agriculture, and financial policies.

FITUG expressed its support for government initiatives aimed at improving the well-being of workers and their families. The organization put forth several policy recommendations to further enhance worker welfare.

One of FITUG’s key proposals is to adjust the income tax regime to increase disposable income for workers. This includes changes to income tax thresholds and rates, as well as the introduction of tax credits for taxpayers with dependents. FITUG also reiterated its call for equalizing the national minimum wage and public sector minimum wage as a step toward a living wage.

Additionally, FITUG urged the government to consider improving old age pensions and public assistance and to address long-neglected adjustments in pensions paid by the National Insurance Scheme (NIS). The organization recommended introducing pay increments within the public service based on performance, in consultation with relevant bargaining agents.

Strengthening labor legislation was another urgent concern raised by FITUG. The organization emphasized the need for an updated legal framework to protect workers’ rights, modernize outdated laws, and reinforce the Labor Ministry.

FITUG also stressed the importance of labor productivity and the need to prevent overworking employees, as it could hinder the adoption of productivity-enhancing technologies.

Regarding Budget 2024, FITUG requested continued support for the sugar industry and emphasized the importance of maintaining and protecting infrastructure investments made by the government.

The Federation expressed concerns about road safety and occupational safety and health (OSH) and recommended the implementation of appropriate mechanisms to protect road users and oversee construction safety.

The government welcomed FITUG’s proposals, considering them reasonable and appropriate. While acknowledging that not all issues could be comprehensively addressed, the government pledged its commitment to improving the well-being of the working class.

In summary, the meeting between FITUG and the government highlighted the importance of prioritizing the welfare of workers and taking tangible steps to enhance their economic conditions as the country moves forward. Both parties expressed their commitment to collaborating for the betterment of all Guyanese citizens.

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