Finance Minister Winston Jordan is expected to announce a reduction in fuel prices and increases in the income tax threshold and the old age pension during his 2016 national budget presentation this afternoon, Stabroek News has learned.
The government has not moved to lower the excise tax on fuel even though global prices for oil have been around US$30 per barrel and under, prompting the Private Sector Commission (PSC) to call on Monday for a review of fuel prices at GuyOil and a reduction of electricity rates to benefit consumers.
Stabroek News understands that Jordan will announce a reduction of gasoline prices at GuyOil to $170 per litre, as well as reductions for dieseline and kerosene.
Stabroek News also understands that the minister will announce an increase in the income tax threshold to $55,000 monthly from the current $50,000. However, this newspaper was told that he will hold off announcing salary increases for public servants due to ongoing collective bargaining with unions. Jordan’s announcement of an increase last year, in the absence of any negotiations with the unions, was criticised.
Also to be announced is an increase in old age pension from April from $17,000 to $18,200 as well as an increase in public assistance from $6,500 to $7,300.
Jordan is also expected to announce the removal of excise tax on vehicles under four years old under 1500cc, the reduction of the excise tax from 50% to 10% on vehicles under four years old, between 1500cc and under 2000cc, and restriction of the importation of used and/or re-conditioned vehicles to under eight years old from the date of manufacture to the date of importation beginning in May.
He is also expected to announce plans to move to ban the importation of used tyres and to reduce taxes on new tyres to encourage their use.