GMSA presented measures to reduce taxation on small businesses

Budget 2019

Some 50 measures were presented in the Budget 2019 by the Guyana Manufacturing and Services Association (GMSA) to assist small businesses with the hefty taxation costs which they face among other key challenges.
This was shared by the President of the organisation, Shyam Nokta, during the presentation of the annual report for 2018, where he noted that specific measures were created for sectors under their association.

“For Budget 2019, the GMSA advanced about 50 measures covering a range of areas from taxation, access to finance, public procurement, energy, standards and regulations among others. We also put forward very specific measures for sectors under the GMSA forestry and wood products, agro-processing, construction and engineering and services,” he said.
According to Nokta, this is in keeping with their mandate to stimulate the economy and improving the manufacturing sector entirely. He is of the view that these points will prove to be of tremendous support. Taxation was reduced in some areas on some locally manufactured products.
“We are of the firm belief that these measures, if implemented, could help stimulate the economy and help to boost manufacturing. Budget 2019 did contain provisions that can prove helpful for the manufacturing sector. The reduction of the manufacturing and non-commercial rate to 25 per cent reduction of income and corporate tax to 25 per cent on taxable profits and reduction in excise tax on indigenous wines and other locally manufactured beverages,” the GMSA President stated.
However, one of the concerns shared related to the structure in which businesses are conducted, stating that the scheme has not been modified to make it easier for stakeholders.
“These measures can prove to be helpful. However, the overall business environment and ease of doing business has not been significantly enhanced in recent years and this ultimately could have implications for all businesses.”
On the Government’s end, consultations were extended on the Food Safety Bill along with a facelift to the Guyana National Bureau of Standards (GNBS) and the Government Analyst Food and Drug Department (GAFDD).
Weighing in on successes, Nokta stated that the Marketplace Uncapped was undoubtedly a hit in providing a medium for persons to showcase their products. Plans are on stream to make this event a regional awareness programme for 2019.
“The uncapped initiative targeted small agro-processors and already, some have been benefit in having their products recognised at the national level and also being featured in local supermarkets while some have been able to secure lucrative regional and international markets. The uncapped initiative will soon be embarking on a nationwide public awareness programme to further promote and feature agro-processors and their products.”