VAT to be reviewed in 2018 budget – Finance Minister

Cabinet has agreed to review all taxes including the Valued Added Tax [VAT] on private tuition for Budget 2018. This is according to Minister of Finance, Mr. Winston Jordan during a meeting this week with members of the Georgetown Chamber of Commerce and Industry (GCCI). In attendance were newly elected GCCI President Deodat Indar; Immediate Past President Vishnu Doerga and other executive members to discuss strengthened partnerships with the Ministry of Finance and to explore strategic approaches to promoting growth in the economy.

The Minister was accompanied by the Governor General of Central Bank, Dr. Gobind Ganga and Commissioner General of the Guyana Revenue Authority, Godfrey Statia.

At the meeting Indar raised a number of issues that are affecting members of GCCI including: VAT on private tuition and forestry products; rate and availability of foreign exchange; the state of the economy; local content legislation in the context of the emerging oil and gas sector and GRA’s ‘uneven’ import  valuation system.

In addressing the issue of VAT on private tuition fees, the Minister asserted that this was not as a result of non-compliance by the owners of private schools as is being peddled in some quarters, but rather that it was done in the context of broadening the tax base as government sought to lower other tax rates such as income and Corporation rates.

But Indar shared his view that the VAT on forestry products makes them less competitive than alternative imported building materials, and that this is disadvantageous to the local industry.

However the Minister urged GCCI to engage its stakeholders to provide evidence based data on the effects of VAT on forestry products so as to advance a review of tax measures impacting on the sector and offered to examine other incentives to help make the sector more competitive. Indar welcomed the suggestions and promised to discuss them with his membership.

GCCI also reported that complaints about the availability of foreign currency are continuing particularly from small and sole proprietary businesses.

Meanwhile, Dr. Gobind Ganga, informed that the exchange rate had stabilised and advised that there is enough foreign exchange available for banks to service requests from especially small businesses and individuals.