Sep 08, 2020 News
– no vat on electricity and water
Just one month after being sworn into government, the People’s Progressive Party/ Civic (PPP/C) regime has already announced over 42 sweeping measures that will bring significant economic assistance to Guyanese and several sectors. One particular highlight of this economic assistance includes a list of 22 tax relief measures for both citizens and local business.
These were announced yesterday by President Irfaan Ali during an engagement with the media at the Arthur Chung Conference Centre (ACCC) at Liliendaal yesterday.
These tax relief measures include reversal of value added tax (VAT) on electricity and water; removal of VAT and duties on machinery and equipment for recapitalization of key sections such as mining, forestry, agriculture and manufacturing; tax concessions or those aforesaid industries; reversal of land lease fees; removal of VAT on fertilizers, pesticides, agricultural chemicals and key inputs in the poultry sector; reversal of VAT on all exports, hinterland travel, medical supplies, mobile phones, building and construction materials and revert the poultry industry to zero rated VAT status.
President Ali also announced the removal of corporate tax on private education and private healthcare; reversal of policies to allow for the importation of used tyres, for the use of vehicles over eight years old, to allow half-cut vehicles over eight years old to be imported, as well as the reverting of free water for pensioners.
He continued that interests on mortgages will now become income tax deductible; that any license fee that was increased after 2014 will be reduced by 50 percent. He also spoke of the removal of the requirement to register and take out road licenses for miners and the requirement that prohibits miners from transporting fuel in their vehicles.
During his presentation yesterday, President Ali indicated that these tax breaks will stimulate economic activity that will “put people back to work with the aims of increasing productivity, reducing the cost of doing business, improving efficiency, thereby facilitating growth and development of business.”
Meanwhile, Vice President, Bharrat Jagdeo, has stated that the tax breaks will yield over $20B in relief for Guyanese. Jagdeo, who was also present at yesterday’s engagement, said, “If you look at the measures in the new budget and a combination of direct incentives and a reduction of taxes, the Guyanese public will benefit over $20B of relief.”
These promises were crafted in the PPP/C’s manifesto during the run up to the 2020 elections. Now in office, the Vice President added that the government is on a path to fulfill those promises.
With the new tax measures, the VP is confidence that more disposable income will be available to Guyanese as cost of living will now be reduced.
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