– “Duplicitous int’l bodies cannot dictate for us; we will charter own course”- VP Jagdeo
United Nations (UN) Secretary General, António Guterres recently called on oil producing nations to impose a windfall tax on oil companies. While some developed countries have already moved in that direction, Vice President Bharrat Jagdeo has said explicitly that Guyana will not.
During a recent interview on the Glenn Lall Show, Vice President Dr Bharrat Jagdeo was faced with questions regarding the imposition of the windfall tax. He was told of the Secretary General’s call and of the International Monetary Fund’s offer to provide guidance to countries willing to cash in on the excessive profits being garnered by oil companies.
But the Vice President said that the Government of Guyana will not take instructions on how to manage its oil industry from sources who frowned on the country’s move to monetize its oil and gas resources.
Dr. Jagdeo noted that it was the same UN Secretary General who said that countries that are developing their oil and gas resources are immoral. “Why would I listen to someone who says that,” he questioned.
Dr. Jagdeo asserted that Guyana needs to charter its own course. He added, “If we had not chartered our own way we would have been in crisis like many countries.” The politician went on to note the at the UK is now seeking to borrow $115B to subsidize the cost of energy there while they get their energy sector back on track.
He added, “The UK was trying, before COP26, to get the world to ban the use of coal. Now it started using coal again in its power plant.”
Dr. Jagdeo pointed out that before COP 26, the developed world insisted that no country must invest in oil and gas assets now. But now they are returning to the use of gas for the benefit of their people.
He then asserted, “These countries are no standards. They are duplicitous. They are no standards to determine our polices. We will not impose a windfall tax.”
Further to not blindly following the lead of the developed world, Dr. Jagdeo pointed to the stability clause contained in the 2016 pact that Guyana has with oil companies.
He said, “We have a stability clause which says that the government shall pay taxes on behalf of the company. Because of that, you cannot increase tax rate without creating liability to the State.”
