The Private Sector Commission (PSC) on Tuesday commended the government on its National Budget presentation, while noting that the 2023 edition amounted to $781.9 billion, or a 41.4 % increase on last year’s budget without no new taxes.
The PSC statement cited specific measures in Budget 2023 which includes addressing the rise in cost of living [raising the income tax threshold], maintaining zero excise taxes on fuel and the reduction in freight charges by extending the application of freight cost adjustment for the calculation of import taxes for a 12-month period. A welcomed feature of the budget, says the statement, is that there are no new taxes. This when coupled with other tax relief measures such as removal of the 14 percent VAT [with respect to the sale of residential properties], reduction in new motor vehicles’ duty from 45% to 35% below 1500 cc.; replacement of the current tax rate on used vehicles (vehicles 4 years and older) below 1500cc and the removal of the currently applicable 14 percent VAT on new electric motor vehicles will, according to the PSC, be cost savings to all Guyanese.
The statement also commented on some of the PPP/C’s key projects which include the housing sector.
According to the PSC statement, increased spending in the housing sector, conjoined with increases in the low-income mortgage ceiling will make for an exciting future in this sector. Budget 2023, says the PSC, will contribute to job creation by investing in economic growth and promoting private sector development, increase the availability of credit for small businesses, new job opportunities in the energy and renewable energy sectors with the proposed increase funding for skills training and vocational education. The provision of digital solutions will also bring much relief to businesses and the citizenry and reduce inefficiencies in the public agencies.
The PSC statement also lists some of the benefits to be accrued from the increased investment in education [$94.4 Billion]. Among these will be a more educated consumer base leading to increased consumer spending in the private sector. The injection of $84.9 Billion into the Health Sector is a significant leap taken by the government to achieve a modernized health care system, said the PSC statement. The PSC anticipates this will improve public accessibility to specialty services which are currently unavailable.
Of critical importance to the Private Sector is the continuous investment by the government in infrastructure development as this provides the necessary foundation for economic growth and business activity. Further, the Commission recognizes and welcomes the commitment made to create a conducive environment for private sector investment in the small business sector by allocating the sum of $584.2 million towards the Small Business Bureau and the Small Business Development Fund.
The PSC congratulated the Government for what it described as ‘another transformational budget’. The PSC statement said, “We strongly believe that the architecture of Budget 2023 is well-balanced and caters to the needs of all sectors, which is essential in fostering continuous growth and development of our economy, and improving the quality of the lives of every Guyanese. The presentation by Senior Minister with responsibility for Finance, Hon. Dr. Ashni Singh, should not only be seen as a financial modus operandi but rather an analytical, rational and logical approach to economic governance.”
