According to the Director of Public Information, Imran Khan, the new tax measures announced by Minister of Finance Hon. Winston Jordan will inject some $9,595,000,000 ($9.595BILLION) into the Guyanese economy.
In a statement from the Department of Public Information (DPI) on Saturday, this represents the amount which the government will forego from the national treasury and is in effect a massive stimulus package.
It was also claimed that this will increase employees’ take home pay.
“The reduction of the Value Added Tax from 16% to 14% alone will dent the national treasury by $4.8BILLION while the loss from the reduction in Personal Income Tax will cost another $3.8 BILLION” the DPI said.
Following are the details of how much each measure is calculated to cost the treasury:
- VAT reduction from 16% to 14%:
Cost to treasury: $4,817,000,000
- Reduction of Personal Income Tax from 30% to 28%:
Cost to the treasury: $3,826,000,000
- Reduction in Corporate Tax from 30% to 27.5%:
Cost to treasury: $752,000,000
- Increasing of VAT threshold from $10m to $15m:
Cost to treasury: $200,000,000
Total cost to the treasury: $9,595,000,000
These figures have been provided by the Ministry of Finance, the DPI said.
“Further the Government of the Cooperative Republic of Guyana assures all employees that under the new proposed Personal Income Tax system ALL employees will have a take home salary, come January 2017, which is higher than their current take home salary.”
Persons are asked to use the Salary Calculator at www.dpi.gov.gy/salary which computes salaries under the new system. The Salary Calculator will show the increased take home salary, total taxes to be paid and the National Insurance Scheme contribution.