Govt provided $80B in fiscal incentives to private sector in 2 years – Ali

Incentivising the growth and expansion of the private sector, the necessary engine of economic growth in Guyana, has cost the People’s Progressive Party/Civic (PPP/C) Government some $80 Billion in fiscal incentives over the past few years but has helped boost the economy while bringing hundreds of products to the international market.

During the Guyana Manufacturing and Services Association (GMSA) awards dinner on Tuesday, President Dr Irfaan Ali spoke of his government’s support for the manufacturing sector. He provided the figure of $80 Billion in total fiscal incentives the Government has provided to the sector over the past two years.
“Let me explain to you what the government has done in the last two years, to cushion and support investments. In fiscal incentives alone, to the local manufacturers and private sector, we have been able to give $80 Billion in the last two years.”
According to the President, this is $80 Billion that was provided through avenues such as the Guyana Revenue Authority (GRA) and other fiscal incentives. When it comes to the fuel incentives, which government provided by rolling back excise taxes, this alone amounts to over $20 Billion.
“In fuel, because of the removal of the taxes on fuel to support manufacturers and the local private sector, we have foregone $21 Billion in revenue. In freight, the freight relief that we offered from COVID.”
“That relief cost us $5 Billion. That is what we’ve been doing. Support to mining, when we removed all the taxes that were placed on mining and so on, we forgone another $12 Billion in revenue,” the President said.
President Ali noted that the Government’s investments in growing industries is made possible by the increased revenue from oil and gas. This revenue, he noted, ensures that the Government can continue to evenly support all the sectors, making them more competitive.

Fruits of investment
The fruits of this investment have meanwhile seen over 150 products being brought from Guyana to international markets in the last year. The President emphasized the importance of making sure products are visible.
“One of the most important things for the small and medium sized business, you may think is capital. But you can have capital and the best product. But if you don’t have exposure, if your product doesn’t have exposure, it will go nowhere. And I dare anyone in the manufacturing and services sector, to say this government has not spared every effort to give your product exposure,” President Ali also said.
Among the initiatives the Government has taken to provide fiscal incentives for the private sector, is the establishment of the $900 million revolving fund to boost the forestry sector, in collaboration with Demerara Bank Limited (DBL), just recently.
GMSA had hailed the Government’s landmark decision, noting that it had been calling on a measure such as this for over a decade, to help various sectors transition to value-added production. The matter was further raised by GMSA President Rafeek Khan, at the Association’s mid-year dinner.
Khan made another request in the GMSA’s 2023 budget submission to the Government. The Association was still awaiting feedback when President Ali advanced the decision and announced the fund during an event last month.
According to the President Ali when he announced it, $300 million from the State’s coffers has been set aside for this revolving fund. This sum will be further supplemented by $600 million more provided by Demerara Bank Limited.
The $900 million revolving fund will carry a low interest rate of four per cent. The Head of State had further explained that through a partnership with the Guyana Forestry Commission under the Ministry of Natural Resources, a committee will be established to ensure that persons are adhering to and abiding by what is expected of them, that is, the sector itself and its various associations. (G3)