–says it strikes balance between private and public sector growth

THE Private Sector Commission (PSC) has commended Finance Minister, Dr. Ashni Singh, for presenting what they described as a “balanced budget that lays the foundation for massive economic growth, expansion of the private sector and the creation of jobs for all Guyanese.”

A press release from the PSC noted that in addition to the wide range of public investment projects and initiatives to stimulate economic activity and generate incomes, “Budget 2022 proposes measures aimed at improving business competitiveness, promoting local content and ensuring tax parity.”

“The Commission is pleased to see that some of the measures proposed during consultations with the Private Sector Commission on the national budget were considered and reflected in the budget for 2022.”

The PSC said it recognises that while some of its proposals were taken on board, the $552.9B dollar budget outlined public investment progammes such as infrastructural developments that will also drive private sector development.

The Commission is particularly pleased that the budget did not introduce any new taxes.

The specific budget measures welcomed by the PSC are: elimination of the 2 per cent withholding tax on resident contractors; removal of the 10 per cent excise tax and 14 per cent VAT on commercial trucks; removal of the 14 per cent VAT on the importation of new haulers; removal of excise tax on the importation of new double and single cab pickups; removal of the 14 per cent VAT on cranes, safety equipment, and oil spill response equipment; extension of the freight cost to pre-pandemic levels; lowering of the excise tax rate on gasoline and diesel from 20 per cent to 10 percent and the allocation of $420.5M to train unskilled Guyanese for jobs in the oil and gas sector.

“The Commission is aware of the fact that the budget must be shaped in the context of the global and domestic environment, given the problem of the supply chain and the challenge of pandemic.”
The PSC believes that this budget is well on its way to bringing about major transformation in the economy.