GUYANESE economist Richard Rambarran has emphasised that recent fiscal measures introduced in Budget 2026 are positioning Guyana for a major economic shift, with a strong emphasis on value-added production and private- sector competitiveness.

During a recent interview, Rambarran pointed to the expansion of export allowances to include timber value-added products as a critical policy move. He explained that export allowances reduce the amount of taxes companies pay on profits derived from exports, thereby incentivising production.

“An export allowance refers to a charge back on the profits where you are actually allowed to deduct a certain amount of taxes as a result of your production for export,” he said. “The quantum that you are going to be paying over… declines.”

According to Rambarran, the government’s decision to apply this mechanism specifically to timber value-added products reflects a deliberate effort to move Guyana beyond its traditional reliance on primary production.

“In this particular instance… this obviously represents a push by the administration to further along in value-added production and manufacturing,” he said.

He noted that Guyana has long been accustomed to exporting raw materials, particularly in the forestry sector. However, the new measure is aimed at encouraging domestic companies to build out the value chain locally, transitioning from basic logging to the production of finished goods such as furniture.

“This is a measure to actually incentivise production and actually incentivise the value chain being built out in Guyana by domestic companies,” Rambarran explained.

He described the policy as one that “augurs very well for Guyana,” particularly in terms of economic growth and industrial development.

The economist also linked the fiscal changes to broader structural developments, including the anticipated impact of the gas-to-energy project.

He said that when combined, these initiatives will significantly improve the competitiveness of the local economy.

“If you think about this sort of fiscal policy coming in tandem with the gas-to-energy project, which will change the structural competitiveness of the economy, it will change the very fundamental of the economic structure in Guyana,” he said.

Rambarran added that these policies are part of a wider strategy aimed at building an internationally competitive private sector.

“They’re really looking to engender a Guyana that is internationally competitive,” he said, pointing to complementary efforts such as infrastructural development and local-content policies.

He further noted that the benefits of increased competitiveness are not limited to businesses. Consumers, he said, are also likely to see gains through lower prices and improved product availability.

“You’ll find that Guyana’s private sector will actually have space and the ability to build out a much more internationally competitive private sector, and it will ensure that consumers are also able to benefit from lower prices,” he explained.

Turning to tax policy, Rambarran addressed concerns about the government foregoing revenue through tax reductions. He said such decisions must be viewed through the lens of economic impact rather than immediate fiscal returns.

“If I give you $10 in a tax break, your enterprise must be able to generate $10 x2, x3,” he said, explaining the principle behind targeted tax incentives.

He described the removal of corporate taxes for agriculture and agro-processing as a “landmark moment,” particularly for small and medium-sized producers.

According to Rambarran, these measures will allow businesses to reinvest in their operations, expand production, and improve product quality.

“They are now in a space where they can play better within the Caribbean region and expand faster,” he said.

He added that smaller, cottage-level producers stand to benefit significantly, as they will now have more resources to invest in equipment and employment.

“They can now invest into a new plant; they can now hire more people,” he noted.

The economist also highlighted the removal of corporate taxes for childcare services, describing it as a policy that effectively links economic growth with social development.

“I think it’s a fantastic step,” he said, explaining that incentivising private investment in childcare can increase workforce participation, particularly among women.

“Having more women participating in the labour force… is something which bodes well for the economy,” Rambarran added.

He noted that in a country such as Guyana, where labour shortages are an ongoing challenge, such policies can help unlock additional workforce capacity.

Overall, Rambarran said the combination of fiscal incentives, infrastructural investment and energy reform is creating a foundation for long-term growth.

“All of these, when taken in tandem… work synchronously to ensure that the multiplier effect… actually work to catalyse growth, leapfrog industry, and to ensure that Guyana diversifies its economic base beyond primary production,” he said.

He concluded that the policies signal a “new era” for Guyana’s industrial development, urging citizens to pay close attention to the transformation taking place.