The performance of the Guyanese economy continues to vindicate government’s efforts over the years to diversify the country’s productive base, and reduce exposure to external and other shocks, Finance Minister Dr Ashni Singh said on Monday as he presented the 2013 National Budget.
Several specific measures were highlighted in the budget including the following:
• The current tax-free threshold for property tax on companies is Gy$1.5 million. From 2014, the new threshold will be Gy$10 million, as a result of which thousands of small businesses with net property below Gy$10 million will no longer be subject to property tax.
• The current tax-free threshold for property tax on individuals is Gy$7.5 million; the new threshold will be Gy$40 million, as a result of which tens of thousands of low and middle income earners with net property below Gy$40 million will no longer be subject to property tax.
• With effect from year of income 2013, first time homeowners, holders of mortgage loans of up to Gy$30 million granted to them by commercial banks or the building society will be permitted to deduct the interest they pay on such mortgages from their taxable income for the purposes of personal income tax. In other words, that portion of taxable income used by a first time homeowner to pay interest on a housing loan of up to Gy$30 million from a commercial bank or building society will be exempt from personal income tax. This initiative will cost government approximately Gy$580 million.
