Finance Minister Winston Jordan introduced a number of bills in the National Assembly on Tuesday, which will bring into effect the amendments for several taxes increased in the 2017 National Budget.
Among the bills tabled for amendment are the Income Tax Bill 2016, The Intoxicating Liquor Licensing Bill 2016, Corporation Tax Bill 2016, Capital Gains Tax Bill 2016, Value Added Tax Customs Bill 2016, Motor Vehicle and Road Traffic Bill 2016, Miscellaneous Licences Bill 2016, Tax Bill 2016 and Travel Voucher Tax Bill 2016.
Finance Minister Winston Jordan
However, the bills will have to be debated for passage in the National Assembly.
Jordan also presented a number of reports, including the Travel Tax Regulation 2016, the VAT (Amendment) Regulation 2016, the Customs Regulation 2016, the Excise Tax Regulation 2016, and the Customs Order 2016.
Budget 2017, which has come under heavy criticism from the public and the Private Sector, allows for the reduction of VAT from 16 per cent to 14 per cent and the addition of VAT on water bills exceeding $1500 per month, and electricity bills exceeding $10,000 per month. There were also a number of increases, which included an increase in the VAT threshold from $10 million to $15 million, and extension of the list of VAT exempted items and the removal of zero-rated items.
The Budget proposes an increase in the tax threshold from $660,000 per annum to $720,000 per annum, a reduction in the Personal Income Tax rate from 30 per cent to 28 per cent for individuals earning less than $180,000 per month, a new rate of 40 per cent to be applied to the incomes of individuals earning in excess of $2,160,000 per annum. There was also an increase of departure tax payable by persons leaving Guyana from $2500 to $3500.
