The Peoples’ Progressive Party/ Civic (PPP/C) Government has made good on its promise on the removal of Value Added Tax (VAT) in several sectors to ease the burden of Guyanese. This was disclosed by His Excellency, Dr Mohamed Irfaan Ali, President of the Cooperative Republic of Guyana, during a press conference today at the Arthur Chung Conference Centre.
The President said that the measure will bring relief, stimulate economic activity, increase the country’s productive capacity, reduce the cost of doing business and facilitate the growth and development of businesses. The measures, President Ali said will have an immense impact on people’s welfare and well-being and improve living standards.
Topping the list is the removal of VAT immediately on water and electricity which was introduced by the previous administration. The President said this will help every aspect of life and “put more money in people’s pocket.”
Removal of VAT and duties on machinery and equipment to allow for the recapitalization of key sectors which includes mining, forestry, agriculture and manufacturing. This is coupled with the granting of tax concessions for mining, forestry, manufacturing and agriculture.
There will also be the reversal of land lease fees that we have had over the last five years, back to the position it was in 2014. One of the reasons for this is due to the increase of land lease fees for poultry by 1350 per cent, the Head of State said. VAT will also be removed on agrochemicals, fertilizers, pesticides and key inputs in the poultry sector.
The Head of State also highlighted that there will be a reversal of VAT on all exports. He noted that this will help the manufacturing sector, help exporters to become more competitive and profitable. This, according to the President will also open up the sector, while creating more jobs and new opportunities.
Other measures include the removal of VAT on hinterland travel, all medical supplies, building and construction materials and cellular phones. Further, corporate tax on private education and private healthcare will be removed.
Additionally, mortgage interest relief now increased to $30M and will now be income tax-deductible.
“This will help new homeowners, this will help young people where your loans for housing are up to $30M, the interest from those loans will become income tax-deductible,” President Dr Ali stated.
Also, low-income loans have now been increased to $10M from $8M.
The Head of State also announced that all licenses fees which were increased before October 1, 2020, will be slashed by 50 per cent. There will also be a change in the log export policy to allow saw millers export logs, easing the burden of small loggers and saw millers.
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