Finance Minister introduce bills to cover Budget 2017 provisions
The Minister of Finance, Winston Jordan on Tuesday (December 20, 2016) introduced a number of bills in the National Assembly, which will pave the way for amendments to several taxes introduced or increased in the 2017 National Budget.
Among the bills presented for amendment are the Income Tax (Amendment) Bill 2016, The Intoxicating Liquor Licencing (Amendment) Bill 2016, Corporation Tax (Amendment) Bill 2016, Capital Gains Tax (Amendment) Bill 2016, Value Added Tax (Amendment) Customs (Amendment) Bill 2016, Motor Vehicle and Road Traffic (Amendment) Bill 2016, Miscellaneous Licences (Amendment) Bill 2016, Tax (Amendment) Bill 2016 and Travel Voucher Tax (Amendment) Bill 2016.
The Budget 2017 proposals include the reduction of VAT from 16% to 14%, and the addition of the 14% Value-added Tax (VAT) rate to water consumption exceeding $1,500 per month, and electricity consumption exceeding $10,000 per month.
It also proposes an increase in the VAT threshold from $10M to $15M, and expansion of the list of VAT exempted items while eliminating zero-rated items.
Additionally, it proposes an increase in tax threshold – from $660,000 per annum to $720,000 per annum, a reduction in the Personal Income Tax rate from 30% to 28% for individuals earning less than $180,000 per month, a new rate of 40% to be applied to the incomes of individuals earning in excess of $2,160,000 per annum.
Under Corporation tax, it was proposed that Corporation Tax rate be reduced to 27.5% from 30%, for manufacturing and non-commercial companies and the introduction of a dual tax-rate for Companies carrying out both commercial and non-commercial activities.
There will also be an increase of departure tax payable by persons leaving Guyana from $2,500 to $3,500.
Minister Jordan also laid over a number of reports including the Travel Tax Regulation 2016, the VAT (Amendment) Regulation 2016, the Custom (Amendment) Regulation 2016, the Excise Tax (Amendment of Schedules) Regulation 2016, and the Custom (Amendment of Schedules) Order 2016.