MINISTER of Public Telecommunications Cathy Hughes has praised the budget measures that cater for the tourism sector.

Speaking to the Guyana Chronicle recently, the minister, who was previously responsible for tourism, said: “There are so many concessions that are available now in this budget for the private sector– especially in the tourism sector.”

The minister explained that one bugbear to real advancement of the tourism sector is the high cost of investment; but to this end, she noted that budget 2019 provides timely concessions for businesses, property and vehicles.

During his presentation on the proposed 2019 National Budget on Monday, Minister of Finance Winston Jordan highlighted some of the measures that cater for development of the tourism sector in Guyana.

He reminded the House that in 2018, he had alluded to the critical nature of the transportation sector in the economy; as such, the rates of the Excise Tax on overland transportation imported for tourism purposes in the interior/rural and riverine areas were reduced, thereby bringing relief to businesses operating in those areas– especially in Regions One, Seven, Eight, and Nine.

For 2019, Jordan said: “I now propose to add Region 10 to the regions identified to benefit from this concession.”

The Private Sector Commission expressed its appreciation that plans were announced for construction of the Linden-Lethem road; this will ease the woes of businesses and residents dependent on this corridor for their livelihoods.

Additionally, Minister Jordan proposed the introduction of a tax credit equal to 75 per cent of income and corporate taxes payable on profits from tourism activities, for persons investing in the sector in Regions One, Seven, Eight, Nine and 10.

And he proposed exemption of payment of import duties and excise taxes, motor buses with twelve (12) or more seats, not exceeding four years old. These must, however, be purchased and used exclusively for the transportation of tourists anywhere in Guyana, and the owners must be registered and licensed as a tourism operator by the Guyana Tourism Authority (GTA).

For this measure specifically, he said: “The GTA will also verify that the said operators satisfy the registration and licensing conditions for five years, subsequent to receiving any concessions, and all such vehicles will have painted stripes similar to the zoning for minibuses.”

Hotels in the named regions will also benefit from the proposed amendments to the Income Tax Act and the Income Tax (In Aid of Industry) Act that will allow the grant of wear and tear and initial allowances on hotel buildings.

Lauding these measures and the continual thrust to develop the tourism industry as a premier sustainable industry, the former tourism minister said: “Those are the kinds of real things that I think will spur on growth.”

Though the aforementioned measures are specific to the tourism sector, all of the budgetary measures, according to Minister Jordan, will result in a net loss of revenue of $3.5 billion.

But according to Hughes, “The fact that the minister has lost some $3.5B through these measures, just goes to show that $3.5B comes back to real people– in their pockets.”

Jordan too had said that the money would “clearly redound to the benefit of the taxpayers.”