Tax relief for companies, individuals

The Guyanese government Monday presented a GUY$161.4 billion (US$7.9 billion) budget to the National Assembly providing a series of tax relief for individuals and businesses, as well as increases in pensions and public assistance.

"Budget 2011 makes provision for the implementation of certain other specific measures designed to benefit the vulnerable in our society, the elderly, the working people of our country and our rapidly growing private sector," said Finance Minister Dr Ashni Singh.

He told legislators that in 2011, the local economy is expected to grow by 4.6 per cent and inflation is projected at 4.4 per cent.

The Guyana economy last year grew by 3.6 per cent and inflation was 4.5 per cent.

Singh said that from February 1, persons earning up to GUY$40,000 (US$196) per month - GUY$480,000 (US$2,362) annually - will no longer pay income tax, from GUY$420,000 (US$2,066).

Public assistance will also move from GUY$4,900 per month to GUY$5,500; and pensions to GUY$7,500, up from GUY$6,400.

Corporate tax on businesses - excluding telephone companies - has been cut by five percentage points, which puts the new rate at 40 per cent on chargeable profits.

Non-commercial companies will also benefit from a five-point reduction, to 30 per cent.

Singh said the tax relief measures were aimed at allowing businesses to retain and reinvest a significantly higher share of their profits.

The finance minister told legislators that the country's foreign reserves were estimated at US$780 million.

Debate on the budget is expected to begin next week.

- CMC