-owing to Gov’t’s management of economy
THROUGH the prudent management of Guyana’s economy, government has been able to double the income tax threshold over the last five years, taking it from $25,000 in 2006, to $50,000 in 2012. Finance Minister, Dr. Ashni Singh, delivering the 2012 budget estimates Friday, said that personal income tax allowance will be increased to $600,000 annually, allowing taxpayers to benefit from higher take home pay.
“This government has made steady upward adjustments to the personal income tax allowance as it is popularly known. In 2006, the income tax threshold was set at $300,000 annually or $25,000 per month. Since then it has been adjusted up progressively, up to last year, when it was set at $480,000 annually or $40,000 monthly,” Dr. Singh said.
Despite the Opposition’s negative comments, the 2012 budget paves the way for 21,000 people to be removed from the income tax net, and over $3B of additional disposable income placed in the hands of beneficiaries.
This move by government will significantly impact poorer class families.
“We cannot be unmindful of the context in which small economies such as ours confront the challenges of development. Today’s external environment is characterised by a virtually limitless interconnectedness that exacerbates exposure and vulnerabilities, as much as it creates opportunities,” he reminded.
The Finance Minister underscored that the growth that has been achieved in recent years bears testimony to the soundness and responsibility of the Administration’s programmes and policies, which have definitely been bearing fruit.
“This is the background against which Budget 2012 is cast. Ours is therefore the responsibility to ensure that these opportunities are mobilised as quickly as possible, that we take the actions necessary to keep Guyana on the path to accelerated economic growth and social development,” he said.
The achievement of the economy will also pave the way for private sector investments, job creation, expanding and upgrading of infrastructure, and improving the quality of social services. (GINA)