Georgetown, Guyana–September 7th, 2020–His Excellency, Dr. Mohamed Irfaan Ali, President of the Cooperative Republic of Guyana announced at a press conference that his Peoples’ Progressive Party/ Civic (PPP/C) Government has already made good on its promise to remove Value Added Tax (VAT) in several sectors to ease the burden of Guyanese taxpayers.
Topping the list is the removal of VAT immediately on water and electricity which was introduced by the previous administration. Ali said this will help every aspect of life and “put more money in people’s pocket.”
Ali added 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.
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 percent, the Head of State said.
VAT will also be removed on agro-chemicals, fertilizers, pesticides and key inputs in the poultry sector.
The Head of State also highlighted that there will be the reversal of VAT on all exports. This will 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”, Ali added.
Also, low income loans have now been increased to $10M from $8M.
The Head of State also announced that all license fees which were increased before October 1, 2020 will be slashed by 50 percent.