Progressive step for Guyana’s jewellers

The announcement in Budget 2026, detailing the removal of Value Added Tax (VAT) on locally produced jewellery, marks a significant milestone for Guyana’s domestic manufacturing and value addition efforts within the mineral sector. This policy shift, articulated by Finance Minister Dr. Ashni Singh, will strengthen local entrepreneurship, stimulate economic diversification, and recognize the skill and creativity inherent in Guyana’s jewellery industry.
For years, local jewellers have faced structural challenges that placed them at a disadvantage relative to imported alternatives. The imposition of VAT on domestically produced jewellery increased production costs and, by extension, retail prices, reducing competitiveness in the local market. By eliminating this tax burden, the government has addressed a critical barrier to growth, creating a more enabling environment for artisans, designers, diamond setters, and small to medium-sized enterprises (SMEs) engaged in the jewellery sub-sector.
The immediate impact of this policy is twofold as firstly, it reduces the cost of production, allowing manufacturers to allocate resources more efficiently toward innovation, quality enhancement, and business expansion. Secondly, the measure benefits consumers by lowering the final price of locally made jewellery, thereby enhancing its appeal and market reach. Collectively, these effects are expected to strengthen the domestic value chain, support sustainable business operations, and encourage further investment in the sector.
The Guyana Jewellery Association (GJA), which represents a broad spectrum of stakeholders in the industry, has underscored the significance of this policy as a meaningful investment in the nation’s creative economy. In its statement, the Association highlighted that the move signals recognition of the craftsmanship, technical expertise, and artistic excellence that characterize Guyana’s jewellery sector. Local artisans have consistently demonstrated their ability to transform mineral resources into finished products that meet international standards, blending creativity with precision and quality. By removing VAT, the government reduces operational constraints as well as also affirms confidence in these professionals and their contribution to national development.
Beyond immediate economic benefits, the policy sets the stage for a more dynamic and resilient jewellery industry. Entrepreneurs can now consider expanding operations, introducing new designs, adopting advanced technologies, and exploring export opportunities without the added pressure of tax-related cost constraints. This development aligns with broader national objectives of economic diversification and the promotion of domestic value addition, ensuring that Guyana derives greater benefit from its natural resources while cultivating homegrown talent and innovation.
The VAT removal also represents a noteworthy example of responsive governance as the GJA had engaged policymakers on the challenges posed by taxation on locally manufactured jewellery. By integrating these concerns into national policy, the government demonstrates an appreciation for constructive industry feedback and a commitment to policies that foster inclusive economic growth. Such responsiveness is critical in nurturing trust between the private sector and government, providing a stable and predictable environment in which businesses can flourish.
Moreover, the policy reinforces the potential for skill development and capacity building within the sector. With reduced tax pressures, jewellers can allocate more resources toward training, professional development, and the mentoring of emerging artisans. This approach not only strengthens technical expertise but also contributes to the formalization and sustainability of the industry. By investing in people, as Budget 2026 emphasizes, the government ensures that the benefits of policy reform extend beyond immediate economic gains to long-term industry resilience and competitiveness.
The removal of VAT on locally produced jewellery is a measure that will catalyze growth, innovation, and value addition in Guyana’s jewellery sector. It creates a more equitable marketplace for local artisans, reduces barriers to expansion, and affirms the government’s commitment to supporting domestic production and entrepreneurship. As local jewellers embrace this opportunity, the broader economy stands to gain from strengthened domestic value chains, increased competitiveness, and the elevation of Guyana’s reputation for high-quality, locally crafted jewellery.