Proposed fiscal and tax measures
The 2022 National Budget was presented on 26 January 2022. During their presentation, the government proposed certain fiscal and tax measures. It is expected that some of the proposed measures will be enacted in the coming months. Until such time, the following changes do not form part of Guyana's tax legislation.
Value-added tax (VAT) and excise tax
The proposed VAT and excise tax measures are as follows:
- Removal of 14% VAT and 10% excise tax on the importation of motor trucks less than four years old, of any tonnage utilised for transport of goods.
- Removal of 14% VAT on the importation of new haulers for pulling containers or similar vehicles for pulling.
- Removal of 10% excise tax on the importation of new double-cab pickups below 2,000 cc.
- Reduction of excise tax from 110% to 75% for new double-cab pickups between 2,000 and 3,000 cc.
- Removal of 10% excise tax on the importation of new single-cab pickups below 3,000 cc.
- Removal of 14% VAT on cranes, safety equipment, and oil spill response equipment.
- Reduction of the excise tax rate on gasoline and diesel from 20% to 10%.
Withholding tax (WHT)
The proposed WHT measures are as follows:
- Removal of 2% WHT on payments made to Guyana resident contractors.
- Removal of 20% WHT on interest income on individuals' bank savings accounts where the interest income does not exceed 10,000 Guyanese dollars (GYD) per annum.