Reduced income tax, cushion for rising food prices in Budget 2022 – President

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By Kurt Campbell

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President Irfaan Ali has signalled that Budget 2022 will see a reduction in personal income tax and reduced taxes in other areas along with a heap of measures to cushion rising food prices; there will be big spending in health, education and public infrastructure also.

“We have a commitment to do all it can within the budgetary constraint to help the population.

“I asked the Minister of Finance to set aside a sizable allocation to address the issue of the cost of living,” Dr. Ali said in an address to the nation on the eve of the presentation of the budget.

The President said that this year’s budget will “inject” the fuel that will jumpstart the transformation of Guyana.

The budget is expected to be buoyed by oil revenues collected so far, now totalling over G$127 billion. Under recently passed legislation, the government is entitled to withdraw all of the funds.

He said the budget will see continued implementation of promises the ruling People’s Progressive Party made in its manifesto.

The President said relief was coming for each sector and every category of people, noting that children and the elderly would benefit from special social interventions as he hinted at increases in old age pension and grants for school-aged children.

“Children will get more,” Dr. Ali said as he also announced special interventions to enhance the welfare of women and the vulnerable.

“The policies and programmes will be people-centered and people-driven,” the President said in his comments that were guarded so as not to reveal specifics of the fiscal plan which is expected to be the biggest in the history of Guyana.

The President assured that everything will be done to ensure the future prosperity of Guyana and Guyanese. He said there is a keen focus to ensure that there was more disposable income in the pockets of people.

He briefly explained that through consultation, the monies will be disbursed to communities across the country.

Dr. Ali said the government was keen to not only reduce taxation but to ensure that no new taxes are introduced; as such, he said the government will be looking to reduce the disparities in the tax system that undermines the competitiveness of local companies.

“We must maintain a low tax environment… not only the removal but creating a robust economic environment that does not require increases in taxes.

“We want growth and economic advancement without the tax burden,” The President added.

Additionally, he said Budget 2022 will address the withholding tax on constructors imposed by the previous government and taxes on vehicles.

For vehicles, the government is looking to reduce the taxes on double cab open back pickups and new trucks.

Dr. Ali also spoke about the reduction in fuel, reduction in electricity costs, reduction in freight costs, and adjustments to personal income tax.

Expanding and creating job opportunities, better health care systems and educational services, greater public/private partnerships and enhance infrastructure.

“You will see an aggressive and comprehensive framework in terms of our public sector investment programmes,” he added.

Budget 2022 will be presented at 14:00hrs on Wednesday in the National Assembly by Finance Minister Dr. Ashni Singh.

It is during that hours-long presentation that the details will be revealed.

1 Comment
  1. Matthew says

    For vehicles, the government is looking to reduce the taxes on double cab open back pickups and new trucks. F

    Finally they recognize that Guyanese working in manual labour are not the lowest the low in the world and should not be riding around in trays with no seatbelts, etc.

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