In a bold move to foster growth in the agriculture sector and address power challenges, Finance Minister Dr. Ashni Singh unveiled key tax measures in the 2025 national budget, including the removal of VAT on agricultural machinery and backup generators.
The Finance Minister announced the removal of VAT on agricultural machinery. This includes a wide range of equipment crucial for modern farming, from tractors to automated systems.
By eliminating VAT on these imports, the government seeks to lower input costs for farmers, making modernisation more affordable and accessible.
This measure is expected to cost the government over $1 billion annually but is seen as a strategic investment in the future of agriculture.
With reduced overheads, farmers will have the opportunity to enhance productivity, improve efficiencies, and expand their operations.
The move is also expected to stimulate innovation within the sector, positioning Guyana as not only self-sufficient but a potential regional supplier of agricultural produce.
In a further boost to local food production, the Finance Minister also announced a new tax policy for poultry farmers. In line with the government’s goal to meet the growing local demand for poultry and expand the industry regionally, poultry farmers will now benefit from a shortened depreciation period for capital assets such as machinery and equipment used in production.
This change will allow farmers to recover costs more rapidly, easing the financial strain of upgrading their operations.
The new measure is designed to encourage investment in the poultry industry, stimulate growth, and support Guyana’s broader food security agenda. By making it easier for farmers to modernise their production facilities, the government hopes to increase domestic poultry production and reduce reliance on imports.
Another significant change announced was the removal of VAT on electricity generators. This policy shift acknowledges the challenges some areas of the country face in terms of reliable power supply. With frequent power outages impacting businesses and daily life, backup generators have become an essential asset for many sectors.
By removing VAT on the importation of backup generators, the government aims to ease the financial burden on businesses, particularly those in industries where continuous operations are crucial.
The measure is expected to cost the government over $200 million annually but will help ensure that businesses can continue operating smoothly, even during power disruptions.
