Following protests against the imposition of Value-added Tax on private tuition in the 2017 budget, Finance Minister Winston Jordan today announced that the tax will be removed effective from the first day next year.
In his 2018 budget speech today, he said:
- Educational Services
6.16 Mr. Speaker, in Budget 2017, as part of our efforts to widen the tax base, services provided by private educational institutions were standard rated, while educational supplies previously zero-rated were exempted from the payment of the VAT. In view of the representations made, I propose to remove the VAT on the provision of all educational services, with effect from January 1, 2018. At the same time, efforts will continue by the Guyana Revenue Authority to ensure that these institutions become tax-compliant. The potential revenue loss is $342 million.