THE FISCAL Enactment (Amendment) Bill 2011 was read for the first time yesterday in the National Assembly, a motion moved by Finance Minister Dr. Ashni Singh. The Bill is expected to amend the Income and Corporation Tax Acts in light of provisions for tax reforms announced by the minister during his presentation of this year’s $161.4B budget last Monday.
The personal income tax threshold was increased from $420,000 to $480,000, translating to $40,000 tax-free for the individual tax-paying Guyanese.
Corporation taxes for telephone companies remain at 45 per cent of chargeable profits, while commercial companies other than telephone companies benefitted from a decrease in rate from 45 per cent to 40.
These provisions are expected to be effective from February 1, 2011.
The Finance Minister, in his presentation, said: “This commitment formed the basis of our contract with the People of Guyana… We have since been guided by the vision outlined therein, fortified with the steadfastness of commitment that distinguished our preceding terms of office, with our focus sharply aimed at implementing the policies, programmes and projects required to realise a modern and prosperous Guyana.”
He made it clear then, that there needed to be mechanisms to confront the vagaries of a trade and international financial system, as well as the need to overcome the inherent structural vulnerabilities of smallness.
Singh pointed out that the 2011 budget speaks to a Guyana of tomorrow, which envisions an improved society, where all Guyanese are given the opportunity to fulfill their potential.
This year’s budget, the largest under the current administration, was presented under the theme: ‘Together – Building Tomorrow’s Guyana – Today’.