Boost for growth, competitiveness, Private Sector development – PSC, GMSA on Budget 2026

The Private Sector Commission (PSC) and the Guyana Manufacturing and Services Association (GMSA) have welcomed Budget 2026, describing it as a package of measures that supports economic growth, strengthens competitiveness, and advances Private Sector development while addressing social priorities.
In a statement following the presentation of the $1.588 trillion Budget 2026, themed “Putting People First”, the PSC said the allocation reflects a commitment to creating an environment in which businesses can expand, investment can increase, and citizens can benefit from national development.
From a business perspective, the PSC noted that several measures will improve operating conditions for enterprises. These include targeted incentives through Special Development Zones, the removal of corporate tax on agriculture and agro-processing, revisions to the export allowance framework, and the removal of Value Added Tax (VAT) on locally produced furniture and jewellery. According to the Commission, these initiatives are expected to support local production, value-added activities, and export competitiveness.
The PSC also highlighted the proposed establishment of a dedicated Small and Medium-Sized Enterprise (SME) Development Bank as a key intervention. The institution, supported by capital injections, micro-credit facilities and co-investment financing, is expected to improve access to financing, strengthen entrepreneurship, and support job creation across priority sectors.
Measures aimed at reducing business and household costs were also welcomed. The PSC pointed to the removal of VAT and duties on security equipment, vehicles, hybrids, all-terrain vehicles and outboard engines, as well as the continuation of zero excise tax on fuel and adjustments to import tax calculations. These measures, the Commission said, will help to lower operational expenses for businesses while easing cost-of-living pressures for consumers.
Beyond the business environment, the PSC noted that Budget 2026 includes several initiatives targeted at families, workers and vulnerable groups. Increased grants for children, transportation, uniforms, education, pensions and public assistance, along with the removal of corporate tax on child-care and elderly-care facilities, are expected to contribute to workforce stability. The Commission said that higher income tax thresholds, the removal of net property tax, cash grants and increased stipends are projected to inject about $100 billion into disposable income, supporting consumer demand and business activity.

Diversification, inclusive growth
Similarly, the GMSA welcomed Budget 2026, acknowledging the Government’s focus on economic resilience, diversification and inclusive growth. The Association pointed to Guyana’s economic expansion of 19.3 per cent in 2025, with the non-oil economy growing by 14.3 per cent.
The GMSA highlighted the performance of the manufacturing sector, which grew by 20 per cent, and the services sector, which expanded by eight per cent, noting that both contributed significantly to non-oil economic growth. Against the backdrop of global economic uncertainty influenced by geopolitical developments and market volatility, the Association said the measures outlined in Budget 2026 are intended to strengthen resilience and support long-term diversification.
The Association also welcomed the inclusion of several policy recommendations it had submitted to the Ministry of Finance. These include the removal of VAT on locally manufactured furniture, including doors, mouldings and beds; revisions to the export allowance to include value-added timber products; the removal of VAT on locally manufactured jewellery; the establishment of Special Development and Economic Zones to support export-orientated manufacturing; and the proposed creation of a Junior Stock Exchange.
The GMSA further welcomed plans to establish a development bank capitalised at US$100 million, with provisions for collateral-free financing of up to $3 million for small and medium-sized enterprises. The removal of corporate tax on agriculture and agro-processing was also cited as a measure that will support productive sectors.
In its statement, the GMSA thanked the Government for the presentation of the $1.558 trillion Budget 2026 and expressed anticipation for continued collaboration with policymakers. The Association said the allocations for housing, agriculture, agro-processing and technology are expected to positively impact businesses, providing greater certainty for expansion investments over the medium to long term.
Both organisations said Budget 2026 reflects an approach that seeks to align Private Sector development with social support measures, with the potential to stimulate investment, expand opportunities for enterprises, and deliver broad-based benefits as Guyana continues its economic development trajectory.