The National Assembly this afternoon passed the $552.9B 2022 budget after four days of considering estimates of expenditure at the Arthur Chung Conference Centre (ACCC), Liliendaal, East Coast Demerara (ECD).
The Appropriation Bill, Bill No.1 of 2022, was tabled by the Minister within the Office of the President with responsibility for Finance, Dr Ashni Singh, read three times and subsequently passed. The bill gives power to the government to withdraw funds from the Consolidated Fund of Guyana for meeting the expenditure during the financial year 2022.
Similar number of readings and passage were done for the Fiscal Enactments Amendment Bill, Bill No. 2 of 2022. The amendment is a consequential one to give effect to the tax and other measures provided in Budget 2022.
Below is a list of the said measures:
1. Old Age pension moved from $25, 000 to 28,000
2. Uniform grants increase from $4,000 to $5,000 per child.
3. Because We Care grants move from $15,000 to $25,000 per child.
4. Increase of monthly Public Assistance payment from $12,000 to $14,000, benefiting 18,000 persons
5. Increase of the monthly income tax threshold from $65,000 to $75,000 monthly, thereby releasing a total of $1.3 billion into the hands of current taxpayers both in the public and private sectors.
6. Removal of withholding tax from individuals whose total interest income does not exceed $10,000 per annum.
7. Lowering of the excise tax rate further on gasoline and diesel from 20 percent to 10 percent, with immediate effect.
8. 2 percent withholding tax on resident contractors removed
9. Govt. to allow taxpayers a deduction from their chargeable income for premiums paid for life and medical insurance up to a maximum of 10 percent of their income or $30,000 monthly whichever is lower.
10. Introduction of a Dialysis Support Programme under which government will finance up to $600,000 per annum worth of dialysis treatment for each dialysis patient in Guyana. This programme will provide much-needed assistance to almost 300 persons at a cost of $180 million.
11. Removal of 14 percent VAT on cranes, safety equipment, and oil spill response equipment
12. In relation to importation of new motor trucks of any tonnage for transport of goods (new for the purposes of this paragraph refers to vehicles less than four years old), government will remove the 10 percent excise tax as well as the 14 percent VAT that currently apply.
13. In relation to the importation of new haulers for pulling containers or similar vehicles for pulling, VAT of 14 percent that currently applies will be removed
14. For the importation of new double-cab pickups below 2000 cc, 10 percent excise removed tax altogether, while for new double cab pickups between 2000 and 3000 cc excise tax will be reduced from 110 percent to 75 percent.
15. In relation to importation of new single cab pickups below 3000 cc, government will remove the currently applicable 10 percent excise tax altogether.
16. In August 202, there was an adjustment to the freight cost component in the CIF value used for calculation of import taxes, rolling back freight costs to pre-pandemic levels. This had the effect of reducing the import duties, excise taxes, and VAT charged on imported items. This measure was initially due to expire on 31 January 2021. Government said it will be extending the application of this adjustment until 31 December 2022. This measure is expected to cost in the order of $6 billion in 2022.
