Tax to GDP ratio has increased from 2016

Dear Editor,

I wish to refer to ‘Focus on Guyana’s National Budget 2018’ by Ram & McRae in the SN edition of November 30, 2017 where it is stated in the introduction there is  “a deterioration in the tax to GDP ratio”. I wish to point to the fact that the tax to Gross Domestic Product ratio in Guyana has increased from roughly 21.0 per cent in 2016. The ratio expanded on the basis of a 2.9 per cent growth outlook for 2017 and greater tax contribution to GDP, in particular the Value Added, income and trade taxes, which were around 9.3 per cent, 8.4 per cent and 2.3 per cent respectively in 2016.  In particular, the Value Added Tax incidence was on a broader tax base and may have offset some revenue shortfalls in the economy.

Yours faithfully,

(Name and address provided)

Around the Web