The Private Sector Com-mission (PSC) on Saturday commended Finance Minister Dr Ashni Singh for the recently unveiled national budget, which it says lays the foundation for massive economic growth, expansion of the private sector and the creation of jobs for all Guyanese.
In a statement, the PSC said that in addition to the wide range of public investment projects and initiatives to stimulate economic activity and generate incomes, the $552.9 billion budget proposes measures aimed at improving business competitiveness, promoting local content and ensuring tax parity.
It noted that it was pleased to see that some of the measures proposed during consultations with the PSC were considered and reflected in the budget, it also outlined public investment progammes such as infrastructural developments that will also drive private sector development.
In particular, it welcomed absence of new taxes; the elimination of the 2% withholding tax on resident contractors; the removal of the 10% excise tax and 14% VAT on commercial trucks; the removal of the 14% VAT on the importation of new haulers; the removal of excise tax on the importation of new double and single cab pickups; the removal of the 14% VAT on cranes, safety equipment, and oil spill response equipment; the extension of the freight cost to pre-pandemic levels; the lowering of the excise tax rate on gasoline and diesel from 20% to 10%; and the allocation of $420.5 million to train unskilled Guyanese for jobs in the oil and gas sector.
“The Commission is aware of the fact that the budget must be shaped in the context of the global and domestic environment, given the problem of the supply chain and the challenge of pandemic. The PSC believes that this budget is well on its way to bringing about major transformation in the economy,” it added.
Meanwhile, in a separate statement the Guyana Manufacturing and Services Association (GM&SA) also said that a significant number of tax measures and budget allocations will help the manufacturing sector advance competitiveness and capacity building. “While the GM&SA was hopeful for more reduction of the VAT rate and adding more goods and services to the zero rated & exempt supplies, the association recognizes that this was a very strategic budget which strikes a balance for both businesses and individuals,” it said, while also commending the decision against new taxes.
According to the GM&SA, with this year’s allocation in infrastructural development, more jobs will be created and in turn businesses across various sectors will see an increase in revenue.
The GM&SA also welcomed the proposed $245 million allocation in the budget for the establishment of new industrial estates in Region Two and Region Ten, while adding that industrial estates with closer proximity to raw material sources will certainly help with competitiveness as more manufacturing facilities are established.
The GMSA noted that its membership is made up of small business owners, especially in the agro-processing, forestry and services sectors seeking financing for expansion. Access to capital has been a major hindrance to for growth, it added, while noting that it anticipates the benefit of affordable financing and revolving fund stemming from proceeds of Guyana’s new and emerging oil sector. As a result, it expressed hope that the new Natural Resource Fund Act will aid in the facilitation of affordable capital.
The GM&SA also complimented the government’s initiative in 2021 to facilitate grants valued at $329 million to Small Business Bureau (SBB) and it appealed for an expansion of the grant component to further improve the capabilities and readiness of small businesses for local content opportunities.
In addition, the GMSA recommended more robust efforts for funding towards regulatory agencies like the Government Analyst-Food and Drug Department (GA-FDD), the Guyana National Bureau of Standards (GNBS), the Guyana Revenue Authority (GRA), and the Environ-mental Protection Agency (EPA), which it said play a vital role for the acceleration of industries and development to international standards and compliance.
It also urged the resuscitation of the National Competitiveness Council and an update to the National Competitiveness Strategy, while arguing that the weakening of competitiveness in recent years has put our country at a major disadvantage in the traditional sectors.
