President Irfaan Ali yesterday announced that today’s budget will address the cost of living, inject massively into health care, cut taxes on pickups and make it easier for ownership of modern trucks.
During a live pre-budget address to the nation, the President stated that Budget 2022 will focus on increased productivity and capacity building while also removing “burdensome taxes” that Guyanese citizens face.
The president said, “The policy agenda and measures in budget 2022, will be aimed and geared towards increasing disposable income and this is critical, we must have more disposable income available to the population.” He added that he had asked the finance minister to include specific measures that will be geared at enhancing and improving disposable income and ensuring that there is more money available to families and in the economy.
It was against this background he mentioned that while the government aims to address and improve disposable income, the country must maintain a low tax environment which he said was a critical component of the PPP/C’s manifesto.
“…Ensuring not only that we remove all those burdensome taxes that was placed there on the backs of Guyanese…. but more importantly creating a robust economic environment, but a robust environment does not require increases in taxes or increases in tax burden upon the people of our country,” Ali said.
As such it was reiterated that the budget is geared towards economic growth and expansion without bringing hardship or new tax burdens on the people of Guyana. He said it is also aimed at expanding and creating job opportunities.
While he spoke on the aims of this year’s budget, the President stated that he is aware of the impact that the current cost of living is having on citizens and the country. With that he noted that while the government cannot address all the issues surrounding the cost of living, he had given instructions that resources be set aside to address the issue.
He added that this is a global concern and most of it is imported as the world is experiencing high inflation rates due to rising food costs. However, the president stated that the government will work towards assisting citizens. “This government has a commitment to do all it can within its budgetary constraints and framework to help the population of this country,” said President Ali.
According to Ali, he asked Finance Minister Dr Ashni Singh to set aside a “sizeable allocation,” to address the issue of the cost of living. This allocation it was noted will be used through consultations with communities across Guyana in order to find ways and initiatives in which the budgeted allocation can be deployed to ease the burden on the citizenry.
The government, he said, will continue to implement measures to reduce the cost of fuel, extend measures to address the rise in freight charges and announce specific measures that will reduce the cost of borrowing for home ownership.
The President said, “Budget 2022 is about creating opportunities, reducing burdens, enhancing welfare, giving back more to the population, enhancing livelihood, improving living conditions and improving the quality of life for the Guyanese people. This is what budget 2022 will address in a holistic manner.”
He noted that in keeping with the local content legislation, the government will seek to reduce disparities that exist in the tax system that can undermine the competitiveness of local companies seeking business in the oil and gas sector.
To this end he stated that through meetings with local stakeholders in the oil and gas sector, the issue was raised.
He revealed that this year’s budget – the third for this government – will also address taxes on double cab pickup vehicles.
“Budget 2022 will address specifically taxes on double cab open backs, the double cab pickups that are now critical to the development of our country and many industries, budget 2022 will make specific announcements and measures on that,” he said.
The President also disclosed that in relation to the importation of trucks, the government wants to make it easier for persons to own and operate modern ones that can have less burden on the roadways and longer lifecycles. The budget, it was noted will address specifically new trucks or trucks less than four years old.
In addition to that the president indicated that the administration has made commitments as it relates to healthcare, education, women, children and the elderly. He said that in order to not only improve but make health and educational services more accessible, the budget will set aside resources to look at a massive expansion of the country’s healthcare and education systems.
Ali iterated that the government will be investing heavily in health care to meet the promise of bringing world class services to all citizens.
The president added, “Aggressive steps through financing will be taken in Budget 2022 in the construction of many new roads, highways, bridges and other key infrastructure to catalyze growth and development.”
The budget is expected to be presented in the National Assembly today beginning at 2 pm.
