–among slew of measures in Budget 2025

BUILDING on a momentum of boosting economic activity, increasing production and creating opportunities for income generation, the Government of Guyana has revealed a slew of measures in the 2025 National Budget.

• SIGNIFICANT INCOME TAX CUTS AS THRESHOLD INCREASE TO SUPPORT, WORKERS FAMILIES
In a move set to benefit workers, parents, and individuals with multiple income streams, Finance Minister Dr. Ashni Singh has announced significant changes to the income tax structure as part of the 2025 Budget measures.

These measures, aimed at incentivising productivity and rewarding hard work, promise to provide substantial relief for many households across the country.

A key highlight of the 2025 tax reform is the increase in the income tax threshold.

Effective from the 2025 tax year, the threshold will rise to $130,000 per month, up from the previous threshold of $100,000 — itself an increase from $85,000 in 2024.

This means that individuals earning $130,000 or less will no longer be subject to income tax, while those earning above this amount will only pay tax on income exceeding the threshold.

The government estimates that these changes will result in an additional $8.5 billion in disposable income for workers nationwide.
Further, in 2025, the first $50,000 earned from overtime work each month will be exempt from taxes.

This measure is designed to ensure workers are fairly rewarded for their additional efforts. The government anticipates that this change will result in a cost of over $600 million annually.

Additionally, personal income tax was reduced from 28 per cent to 25 per cent.

• $100,000 GRANT FOR NEWBORN BABIES
In a landmark initiative aimed at supporting families the Government of Guyana has unveiled a significant new initiative in its 2025 budget: A cash grant of 100,000 Guyanese dollars for every newborn baby born to a Guyanese mother.

According to Dr. Singh, this measure will see the government supporting the country’s most vulnerable and youngest population.
He further explained that this unprecedented initiative aims to provide financial security and opportunities for the “nation’s youngest citizens”.
The grant is expected to cost $1.3 billion annually and will be given to “every single newborn baby born in Guyana to a Guyanese mother” starting this year.

Further increasing the disposable income of parents, the government will introduce a provision whereby, for each child, one parent would be allowed to claim $10,000 monthly of their income as non-taxable. The estimated annual cost is over $1 billion.

• ‘BECAUSE WE CARE’ CASH GRANT
Meanwhile to further support children across the country, the government will now increase the ‘Because we care’ cash grant to $50,000 per child, benefitting over 205,000 school children.

According to the Finance Minister, the grant has seen incremental increases since the current administration returned to office, growing from $10,000 in 2014 to $40,000 in 2024, after a hiatus from 2015-2020 due to the APNU+AFC’s decision to take this intervention away.
With this latest boost to $50,000, the government will place an additional $2 billion into the hands of parents, supporting both public and private school students.

In addition to this, parents will also receive a $5,000 uniform voucher, bringing the total assistance to $55,000 per child.
This represents an estimated $11 billion injection into households.

• OLD-AGED PENSION
Continuing with its efforts to support the elderly, the Government of Guyana in 2025 has increased old-aged pension to $41,000, fulfilling a manifesto promise to support vulnerable groups across the country.

“In a striking contrast we will be delivering our promise to increase old aged pension,” Finance Minister Dr. Ashni told the National Assembly on Friday, during the presentation of the country’s 2025 fiscal package.

He said that this one measure will place $4.5 billion in the hands of 76,000 pensions; it amounts to a total payout over $37 billion dollars.
In addition to this, the Finance Minister also announced a $22,000 increase to public assistance. This will amount to $1.4 billion benefiting 40,000 persons.

• UNIVERSAL HEALTH VOUCHER
Further, in a bold move to enhance public health and reduce long-term healthcare costs, the government has announced the launch of a $10,000 Universal Health Voucher for every eligible citizen. This initiative aims to cover a range of essential health tests, empowering individuals to take control of their health and catch potential issues early.

The programme is set to cost the government an estimated $5 billion and is expected to reach 500,000 people.

• REMOVAL OF VAT ON AGRICULTURAL MACHINERY AND BACKUP GENERATORS
To stimulate growth in the agriculture sector and address ongoing power challenges, Finance Minister Dr. Ashni Singh unveiled key tax measures in the 2025 national budget, including the removal of VAT on agricultural machinery and backup generators.

As part of the new budgetary measures, the government will eliminate the VAT on a wide range of essential agricultural equipment, from tractors to automated systems. These tools are vital for modernising farming practices and increasing productivity across the sector.

By removing VAT on these imports, the government aims to reduce the cost of input for farmers, making advanced machinery and technology more affordable and accessible.

This move is expected to encourage the adoption of modern farming techniques, which could lead to higher yields and improved sustainability. The measure is projected to cost the government over $1 billion annually.