GCCI proposes tax cuts, duty cuts on hybrids, small business relief for Budget 2025

The Georgetown Chamber of Commerce and Industry (GCCI) has unveiled a series of budgetary recommendations, it said is aimed at stimulating economic growth, reducing financial strain on businesses, and aligning national policies with global trends.

Ahead of today’s Budget 2025 presentation, the GCCI in a release said that in its proposals for Budget 2025 were outlined during a recent meeting and targeted areas such as taxation reform, sector-specific incentives, and enhanced fiscal policies.
The private sector body said that hybrid vehicles in Guyana currently face an effective duty rate of 69%, compared to the 49% duty rate for petrol vehicles. This disparity discourages the adoption of environmentally friendly vehicles and runs counter to international efforts to promote sustainable economies. According to the GCCI, it has recommended the reduction in the duty rate on hybrid vehicles to match or fall below the rate applied to petrol vehicles. Such a change would encourage the importation of greener cars, reducing carbon emissions and advancing Guyana’s commitment to environmental sustainability.
It has also recommended the eliminating import duties on spare parts for agricultural and construction machinery. This policy shift would decrease operational costs, enhance productivity, and improve competitiveness in these key industries. On the issue of property tax reform, the body said that property taxes are currently levied on properties valued above $40 million, a threshold that has remained unchanged since 2019. With inflation, this outdated limit has resulted in an increased tax burden for property owners. GCCI suggested raising the non-taxable property value threshold to reflect current market values and inflation rates. This adjustment would ease financial pressures on property owners and support growth in the real estate sector. According to GCCI, small businesses in Guyana face significant challenges due to mandatory annual audits, which can be costly and time-consuming. Limited availability of auditors exacerbates these issues, creating delays and inefficiencies. The GCCI proposed establishing thresholds for small businesses based on revenue, employee count, or asset levels, exempting those below the threshold from mandatory audits. This measure would reduce administrative and financial burdens, enabling small enterprises to focus on growth. Under current tax regulations, it said, pension contributions are treated as taxable income, reducing employees’ take-home pay and discouraging retirement savings. As such the Chamber called for pension contributions to be treated as non-taxable deductions, up to a specified limit. This reform would incentivize retirement savings, enhance employee financial security, and align with global best practices.