In light of the Coronavirus disease 2019 (COVID-19) outbreak, the Guyana Tourism Authority (GTA) is calling on the Ministry of Finance and the relevant policy makers to waive VAT, PAYE, NIS payments or extend the timelines by six months in an effort to save the sector which has been hit by travel bans, quarantine measures, and border closures.
In a missive released today, GTA made five recommendations to government; among them was the aforementioned. Based on the social and economic implications of the economic shock of COVID-19, GTA is encouraging the Ministry of Finance and policymakers to work towards identifying low-cost financial support and supplemental financing options for the tourism sector over the near term, including those available from international financial institutions.
The following are among several recommendations put forward by GTA which it deems most critical to business survival and sustainability in this sector:
1. Waive VAT, PAYE, NIS payments or extend the timelines by six months to make those payments through a reassessment of the recovery period to improve cash flow and allow businesses to use cash to save jobs and keep businesses afloat.
2. Provide VAT exemption and waive taxes on the travel and tourism sector with immediate effect for a minimum of 12 months or until the economic situation returns to normalcy to mitigate losses and allow businesses to use cash to save jobs and keep businesses afloat.
3. Provide direct disbursements to businesses to cover employment costs, and/or unemployment payments to qualified travel and tourism employees and other Guyanese who are earning less than GYD$10M a year and who are at risk for facing severe economic hardships.
