Several bills lowering fees and another removing corporation tax on private health care in line with the 2020 budget were approved in the National Assembly on Tuesday.
There were no objections to the bills as the opposition was absent from the sitting. Speaker of the National Assembly Manzoor Nadir informed the assembly that Members of Parliament for A Partnership for National Unity and the Alliance For Change (APNU+AFC) had requested leave from Tuesday’s sitting at the Arthur Chung Conference Centre.
The bills that were passed on Tuesday are the Auctioneers (Amendment) Bill No. 2 of 2020; Corporation Tax (Amendment) Bill No.3 of 2020; Hucksters Licensing and Control (Amendment) Bill No. 4 of 2020; Income Tax (Amendment) Bill No. 5 of 2020; Miscellaneous Licences (amendment) Bill No.7 of 2020; Tax (Amendment) Bill No. 8 of 2020; Value Added Tax Bill No.9 of 2020; and Motor Vehicles and Road Traffic (Amendment) Bill No.10 of 2020. These bills flow from the 2020 budget which was approved on Friday.
The Intoxicating Liquor Licensing (Amendment) Bill No.6 of 2020 was withdrawn by Minister of Public Works Juan Edghill, who moved the second reading for majority of the Bills.
Opening the debate on the Auctioneers (Amendment) Bill, Edghill said the bill seeks to amend the Auctioneers Act Chapter 91 (7) by decreasing the licence fee to be paid for an auctioneer’s licence by 50 per cent of the previously increased amount thereby reducing it from $40,000 to $23,500. This will take effect from October 1, 2020.
He noted that the amendment will reverse the increase from $7,000 to $40,000 on auctioneers’ licences which was done in 2016, adding that this was one of the draconian increases imposed by the previous government.
“I can understand why they are not here today because every bill and motion that will be addressed in this House will basically highlight their insensitive actions,” Edghill asserted.
Meanwhile, Public Service Minister Sonia Parag stated that like most of the other bills, this bill will benefit the Guyanese economy by creating jobs for the people.
Regarding the Corporation Tax Bill, which seeks to remove the 25% corporation tax on private health care and private education, Edghill said that the removal will attract quality educational investments and this will provide greater access to learning opportunities across all fields of studies. In addition, he said that the removal of the 25% will see the reduction of tuition fees.
He asserted that private healthcare will be more affordable for citizens as the removal of the tax will result in a reduction of medical bills at private healthcare facilities.
Speaking on the same topic, Attorney General Anil Nandlall stated that the PPP/C’s vision is to make Guyana the academic and medical hub of the Carib-bean. “The singular objective being to ensure in the end that all of our people have access to the best possible health care and the latest facilities available in the area of education,” he added.
This Bill will take effect from January 1, 2021.
On the topic of the Hucksters Licensing and Control Bill, Edghill stated that the increase to $62,500 to license hucksters not only led to evasion of taxes but also encouraged non-compliance and non-licensing.
Horse cart
As of October, 2020, persons travelling on a man-propelled vehicle or cycle will now pay $2,030, while persons travelling on a horse cart will now pay $7,250, and persons travelling with a motor vehicle will now pay $36,350.
In support of Edghill’s comments, Prime Minister Mark Phillips opined that as a result of the reduction of the licence fee, the small business will be able to do much more and enjoy a better standard of living.
As it relates to the Income Tax Bill, which seeks to amend section 20 (1) (a) of the Income Tax Act to provide mortgage interest relief, Edghill said that homeowners will now have a deduction on interest paid on mortgage loans where it doesn’t exceed $30 million. Prime Minister Phillips added that this bill will ensure that people have more money at their disposal to complete the construction of their homes faster, and will also result in a higher standard of houses being built.
This bill will come into effect on January 1, 2021.
Meanwhile, the Miscellaneous Licences Bill seeks to amend section 6 of the Miscellaneous Licences Act by reducing the prescribed fee for a copy of a lost licence by 50% of the previous increased amount. This amendment takes effect from October 1, 2020.
The Tax (Amendment) Bill seeks to reverse prescribed licences fees by 50% of the previous increased amount with the exception of the licences fees tabled under section 46 of the principal act which is increased to reflect 50% of the previous increased licences fee implemented. These will come into effect on October 1, 2020.
Minister in the Ministry of Public Works, Deodat Indar pointed out that this particular bill reduces the fees for a wide range of businesses including insurance companies, water companies, video store owners and trade licences. In this regard PPP/C MP Sanjeev Datadin added that every stall in the market has a fee attached to it and when that fee is increased, small businesses will be unable to afford to continue with their business. Now, he noted, they will feel a relief as the fees attached will be decreased adding that other beneficiaries include persons applying for a temporary liquor or tobacco licence as well as hotels and restaurants.
“We made a promise to the people of our county that we will reverse these measures and we will reduce them by half and we are delivering on this promise today,” Nandlall added.
Apart from that, on the Value Added Tax (VAT) Bill, Edghill stated that this bill seeks to amend VAT at Chapter 81 (05) reversing the imposition of VAT on exports. He explained that this bill allows for exporters to be registered for VAT and reclaim input purchase VAT on monies expended on VAT pursuant to production. This bill will also come into effect on October 1, 2020.
Real value
“This is a significant intervention that is being made by the administration and this is expected to put monies back, real value money back in the hands of people… and this is because of exporters such as those in rice, fishing and timber industry among others are in the exempt category and cannot be registered and cannot reclaim input purchase VAT on monies expended on VAT in pursuant of their production,” he said, adding that that even though the country now has an oil & gas industry, other traditional sectors still need to be supported so Guyana will not have to depend on one source of income.
Meanwhile, the Motor Vehicles and Road Traffic Bill moved by Minister of Home Affairs Robeson Benn seeks to amend the Motor Vehicle and Road Traffic Act Chapter 51 (02) which will provide for exemptions from the requirement to register and pay licence fees for excavators, bulldozers and other vehicles used in the mining industry.
“The removal or the exemption of this requirement will remove a great burden in respect of the licences fees, in respect of the running around, in respect of the harassments, in respect of jumping the hurdles and sometimes doing the limbo to get work done in the interior of our country in relation to our miners and related operations,” Benn stated before asking members to support the bill.
Echoing Benn’s comments, Phillips said investors and operators just like the majority of businesses have been crying out for government’s support in helping to foster the environment for economic growth and boosting investor confidence.
The bills were passed without amendments.
