In a significant pre-budget consultation with Guyana’s Ministry of Finance, the Private Sector Commission (PSC) has presented a comprehensive package of tax reduction proposals aimed at stimulating economic growth and increasing disposable income for both businesses and workers.
The January 17 meeting, attended by Finance Minister Dr. Ashni Singh and representatives from major business organizations, centered on the PSC’s recommendations for the upcoming 2026 national budget. PSC President Gerry Gouveia Jr. characterized the proposals as designed to “maximize the net take home for local businesses as well as employees” while addressing inflationary pressures.
Key recommendations include completely eliminating corporate income tax for small and medium enterprises (SMEs) with annual earnings below GY$60 million for their first three years of operation. The PSC also advocates raising the personal income tax threshold from GY$130,000 to GY$160,000 and implementing “significant increases” to the current minimum salary of GY$102,346.
To address Guyana’s critical labor shortage exceeding 50,000 workers, the commission proposes reducing the migrant worker withholding tax from 20% to 10% for foreign specialists. Additional measures include cutting the standard corporate tax rate from 40% to 25% over two years, eliminating the 2% minimum corporate tax on gross turnover, and reducing VAT from 14% to 12% overall with zero rating applied to locally produced food, water, and cooking gas.
The proposals extend beyond conventional business interests, incorporating social development components such as tax credits for charitable donations and sports sponsorships, plus support for childcare institutions and gender equality initiatives. In the housing sector, the private sector seeks removal of 5% duties on cement and finishing materials to reduce construction costs for three-bedroom homes by approximately GY$2 million.
While Minister Singh expressed enthusiasm for the “creative and informative” nature of the proposals, particularly those supporting underprivileged populations, no firm commitments were made during the consultation. Further discussions are expected before the budget’s presentation on January 26, 2026.