The 2016 budget has proposed many measures that are aimed at entrenching in law, concessions which are either discretionary or granted arbitrarily. Most of these are designed to support the Government’s thrust of stimulating the economy while rekindling hope and confidence, he stated.
‘Greening’ the economy and protecting the environment
The 2016 Budget proposed the removal of excise tax on motor vehicles under four years old under 1500cc. With this removal, the effective tax rate will be reduced to 68.2%.
The restriction of the importation of used and re-conditioned vehicles to under eight years old from the date of manufacture to the date of importation was proposed. This restriction shall be enforced from May 1, 2016. The budget also proposed the Government’s intent to ban the importation of used tyres and to reduce taxes on new tyres.
A ban on Styrofoam used in the packaging of beverage, food and food products, except Styrofoam containers of a type used for packaging frozen fish and seafood will be effected. There will be an amendment to the Customs Act to exempt all bio-degradable containers used in the packaging of food and beverages.
Removal of arbitrary, discretionary or undefined remissions
Budget 2016 also proposed the amendment of the Customs Act to exempt import duty on motor vehicles imported by eligible public officers, qualifying re-migrants and settlers.
The Financial Administration and Audit Act will be amended to exempt diplomatic, consular, international, charitable and non-profit organisations, semi-autonomous agencies, government departments and public corporations from the payment of want-of-entry charges, stamp duty and environmental tax.There will also be an amendment to the Customs Act to exempt computer printer ink and toner cartridges for non-commercial printers.
The Value Added Tax will also be amended to exempt parboiled rice, packaging materials, and other malt extracts except Ovaltine; the importation of personal effects, including motor vehicles for re-migrants and settlers who qualify for exemptions from Customs duties.
Meanwhile, the amendment of the Income Tax Act will allow for artistes to be exempted from the payment of income tax.
In order to improve the efficiency of administering taxes by the Guyana Revenue Authority, Budget 2016 proposed the amendment of the Tax Act to ensure that prior to the issuance of all licences for public use, including those to conduct forms of trade and business, the applicant complies with his/her obligations to file annual returns and pays, or makes arrangements to pay, all taxes due and payable.
Government has also proposed to amend a raft of legislation, the effect of which is to increase the fees paid to obtain various licences. The pieces of legislation are: Regulations under the Auctioneer Act; Regulations under Hucksters Licencing and Control Act; Regulations made under Miscellaneous Licences Act; Regulations made under the Motor Vehicles and Road Traffic Act; Regulations made under the Rice Factories Act and Regulations made under the Tax Act.
In addition, it is proposed to amend Section 19 0f the Firearms Act Cap 16:05 to increase the annual fee for firearm licences.
It was proposed that the rebate granted by the Guyana Power and Light be increased from 10 percent to 15 percent, with effect from April 1, 2016, as the government is cognisant of the need to provide incentives to the manufacturing sector and to boost households’ income.
Fuel price reduction
With effect from February 1, 2016, the prices of fuel sold by Guyana Oil Company (GUYOIL) will be reduced as follows:
|Type of Fuel||Current Retail Price/Litre ($)||New Retail Price/Gal($)|
Improving Workers’ Income
Government proposed to amend the Income Tax Act to increase the Income Tax Threshold to $660,000, from $600,000 yearly. With this measure, over 68,000 workers will be removed from the income tax roll, in addition to the fact that workers have an additional disposable income annually.
Apr 01, 2020By Sean Devers As the world copes with the unprecedented and continuously evolving threat of the Coronavirus athletes world-wide have faced training and competition disruptions that would undoubtedly...
Apr 01, 2020
Mar 31, 2020
Mar 31, 2020
Mar 31, 2020
Mar 31, 2020
The government passes a motion in parliament which carries weight, though the resolution isn’t made into legislation.... more
By Sir Ronald Sanders On 20 March 2020, a reckless and irresponsible General Assembly (GA) was held by the Organization... more
Editor’s Note, If your sent letter was not published and you felt its contents were valid and devoid of libel or personal attacks, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]