GRA announces dates for rollout of new tax exemptions

The Guyana Revenue Authority (GRA) has sought to clarify confusion in the public domain surrounding the tax measures outlined in the national 2020 Budget and their effective dates of implementation.
President Dr Irfaan Ali signed into law the measures aimed at easing the burdens of high tariffs that were introduced by the former Administration.
Effective from October 1, 2020 were the new or reduced licence fees for motor vehicles and traders; removal of the restriction on vehicles eight years and older, half-cut vehicles, and used tyres; removal of Value Added Tax (VAT) on exports, medical supplies, key inputs in the poultry industry, hinterland travel and construction supplies.
It also includes removal of VAT on capital equipment and machinery used in mining, forestry, agriculture, construction and manufacturing industries, and All-Terrain Vehicles (ATVs) used in the mining, forestry, agriculture and manufacturing industries and by Toshaos.
Effective January 1, 2020 are the Corporation Tax exemption for private medical and private educational institutions, increase in the mortgage limit to $30 million for Mortgage Interest Relief (MIR) eligibility.
Effective April 1, 2020 is the removal of VAT on electricity and water.
Along with publications of the new tax measures in the daily newspapers and social media platforms, GRA has also been disseminating the said information via its weekly television programmes “Focus on GRA” and “Talk Tax” and weekly appearances on live radio.
Taxpayers are also advised to check the GRA website for copies of the legislative amendments and should any further clarification be required, they can make contact with the Authority’s PR Unit via email [email protected] and its Tax Advisory Services Section on 227-6060, extensions 1201 to 1204.
President Ali had fulfilled the manifesto promise of enabling these exemptions, as he noted they would bring immediate relief to the mining, forestry, agriculture and manufacturing sectors – all of which have been underperforming and all of which have been faced with tremendous difficulties under the previous Administration.
He also indicated that they would boost particularly the forestry, mining, and agriculture sectors. He pointed out that current estimates had the mining sector at far below capacity, owing to many miners downing tools and parking their equipment owing to a poor rate of return.
“The estimate is that 65 per cent of the productive capacity in the mining sector has been lost. So, this will help to recapitalise the sector and will help to bring back all the medium and small miners into productive capacity and operation. It will help to create jobs, wealth, and, of course, the trickle-down effect on the rest of the economy. It will bring back the forestry operators. Forestry has had tremendous difficulties over the years,” Dr Ali noted.
While in Opposition, the People’s Progressive Party/Civic (PPP/C) was critical about the former Government’s handling – or lack thereof – of the mining sector. Last year, Ali had called out the then Government over its neglect of the sector and the burdensome taxes being imposed on miners. (G12)