BUDGET 2018: VAT on education services removed
The Government has taken a decision to remove Value Added Tax (VAT) from the provision of all educational services, effective January 01, 2018. This was announced by Minister of Finance, Winston Jordan during the presentation of Budget 2018.
In Budget 2017, services provided by private educational institutions were standard rated, while educational supplies previously zero-rated were exempted from the payment of the VAT.
The Minister on Monday said in view of the representations made, he proposes to “remove the VAT on the provision of all educational services.”
However, he noted that efforts will continue by the Guyana Revenue Authority (GRA) to ensure that these private educational institutions become tax-compliant as the potential revenue loss is $342 million.
There were several protests in 2017 against the implementation of VAT on private educational services with the Alliance For Change and the Working People’s Alliance (WPA) which forms part of the government, calling for it to be removed. Subsequently, the government promised to review the tax measure.