Dear Editor,
Mr. Hemdutt Kumar’s letter, “Removal of property tax is a victory for the wealthy and a betrayal of the poor” (Stabroek News, December 20, 2025), is theoretically sound and morally courageous. Predictably, critics will recycle the familiar claim that property tax is widely evaded and difficult to enforce. By that logic, Guyana should abandon almost every major tax. VAT fraud is endemic, income and corporation tax avoidance is widespread, and customs duties haemorrhage daily. Acknow-ledgment of weak enforcement is a call to strengthen administration – not a justification for capitulation.
Before looking at the history of the property tax which President Ali plans to scrap on individuals – ‘to axe the tax,’ as older heads might say – we need to note that “Individuals” in taxation includes professionals, unincorporated businesses, partnerships, and the majority of contractors. This is a huge body of taxpayers. And if the President does keep his promise, retaining it on companies will not have the simplistic effect assumed: all the “one man” and family companies have to do to avoid the remnants of the tax is to de-incorporate. As was the case with the minimum tax.
Guyana once operated a harshly progressive tax system, with marginal income-tax rates reaching 70 percent, reinforced by the National Development Surcharge Levy (subsequently ruled as unconstitutional by the courts). Over time, that framework has been steadily dismantled. Dividends, then taxable, have been made tax-free, estate duty effectively abolished, capital gain is either exempted or taxed at a lower rate than tax on income. And now, property tax – the last meaningful levy on accumulated wealth – is to be removed.
Guyana’s current $40 million property-tax threshold is already generous by international standards. And in computing the tax payable, full deduction of debts and exempted certain assets is allowed. As Mr. Kumar points out, it already excludes the poor.
Other critics will point to countries that have abandoned wealth taxes. They need to tell the whole story. Where such taxes were removed, wealth concentration intensified. What the tax needs is reform, not abolition – least of all at a moment when oil-driven wealth concentration is accelerating. If the measure is implemented, $2 billion plus will go into the pockets of a not-so-new and rapidly expanding wealth class for whom ‘greed is good’ appears to be the governing mantra, a class that visibly includes ministers, their friends, and their families.
Without more, the repeal would also remove the obligation on taxpayers to itemise and declare their assets, leaving mandatory disclosure confined to income alone. And to make a bad situation worse, the country will bear those consequences through taxation, borrowings and drawdowns from the Natural Resource Fund.
I will be personal and direct. This repeal will save me millions of dollars annually. I do not need it. I did not ask for it, and it will make no difference to how I live. In none of the Budget submissions to which I have contributed over decades did I ever advocate for, or recommend, the removal of property tax. I hope the decision will be revisited.
The Property Tax was one of the 1962 measures advocated by world famous welfare economist Dr. Nicholas Kaldor and warmly embraced by the late President Dr. Cheddi Jagan in the 1962 Budget. When the last remaining tax on accumulated wealth is removed, the signal is unmistakable. The burden shifts downward. To present this as “relief for all” is shallow and dishonest.