Home Top Stories Tax-free mobile phones: Decision a progressive stride towards bridging digital divide –...
…as CANTO congratulates Guyana’s President for tax removal
Local telecommunications providers – the Guyana Telephone and Telegraph Company (GTT), Digicel, and ENet – have welcomed the decision of Government to remove all taxes on cell phones, calling it a significant step towards bridging the digital divide in Guyana.
One day prior, President Dr Irfaan Ali announced that from Monday, all taxes and duties on mobile phones will be removed. He was speaking about technology, telecommunications, and bridging the digital divide in the country during a public meeting in New Amsterdam, Region Six (East Berbice-Corentyne).
On Saturday, the companies issued a joint statement in support of the announcement as it would improve information access for citizens.
“This announcement will transform the communications sector by enabling greater access to pursue educational opportunities, conduct business, and foster personal growth,” the companies outlined.
As society becomes increasingly connected, the providers noted that it is essential to remove barriers that hinder access to vital technological resources.
“By exempting taxes on cell phones, President Ali has taken a progressive stride towards bridging the digital divide and promoting inclusivity in all of Guyana. This initiative will undoubtedly result in a multitude of positive outcomes for the people of Guyana, including improved educational prospects, expanded economic opportunities, and enhanced communication networks across the nation, especially our rural and hinterland communities.”
The companies have pledged to assiduously – with the Government and other stakeholders – facilitate the seamless implementation of this tax exemption.
Their joint statement promised, “Customers can look forward, in the near future, to revised prices reflecting the removal of taxes on all cellular devices. These changes will be communicated to the public in tandem with the Government’s lifting of taxes on such products. GTT, Digicel, and ENet look forward to continued efforts to promote digital equity, as we build a platform to deliver the best services and solutions for Guyana.”
As he engaged residents of Region Six, President Ali had zeroed in that the future will rely heavily on technology, and even today, persons are using smartphones to complete their degrees.
“A phone is no longer just to make a phone call. People are doing degrees on a phone. They are conducting business on a phone. A phone is an integral part of the transformation of our country,” he underscored.
CANTO congratulates
Meanwhile, the Caribbean Association of National Telecommunications Operators (CANTO) in a statement on Saturday congratulated President Ali on his Government’s decision to remove all duties and taxes on mobile phones.
The decision to eliminate taxes on mobile phone comes as part of the Government’s commitment to the further promotion of digital inclusion, and the empowerment of citizens with improved access to communication technologies. A removal of these taxes emphasises the Government’s aim to stimulate the growth of the telecommunications sector and facilitate greater connectivity among Guyanese citizens. CANTO said that it has worked closely with the Prime Minister of the Co-operative Republic of Guyana to advance the progress of various projects. The most recent being the launch of the procurement E-platform, that has been endorsed by CANTO’s members in Guyana, Digicel, E-Net and GTT Inc.
Since it took office in 2020, Government has implemented a series of tax relief for Guyanese, including the removal of Value-Added Tax (VAT) on residential and individual data use.
Efforts have been taken to reverse the heavy tax imposition by the former APNU/AFC Government on areas such as education, healthcare, water, and electricity among other areas that affect the livelihood of Guyanese.
During their four-year stint in office, there was major depletion of resources at the Central Bank, with an overdraft of over 500 per cent. At that time, the deficit in Central Government moved from $9.3 billion to almost $30 billion.
Government has noted the introduction of over 200 new taxes and the destruction it wreaked on private businesses and consumers. The effective tax rate in 2015 was 15 per cent, but was raised by seven per cent, meaning the average person had to pay an average of 22 cents earned on every dollar. (G12)
