Minister of Finance, Dr Ashni Singh yesterday presented what he justifiably called the largest budget in Guyana’s history and persons can once again look forward to some sense of relieve in some areas.
The $161.4B budget was presented under the theme, “Together Building Tomorrow’s Guyana Today” and will feature no new taxes.
Dr Singh announced that with effect from year of income 2011, the personal income tax allowance, or threshold as it is popularly known, will be increased from the current level of $420,000 per annum to $480,000 per annum.
This means that the taxable income has now moved from $35, 000 per month to $40,000 per month.
Companies also have something to smile about.
As it relates to the Corporation tax, Dr Singh said that prior to the adjustment commercial companies would pay corporation tax at the rate of 45 per cent of chargeable profits. “Such companies shall with effect from year of income 2011 pay corporation tax at the rate of 40 percent of chargeable profits, except for telephone companies which shall continue to pay corporation tax at the rate of 45 per cent.”
He said, too, that whereas prior to the adjustment non-commercial companies would pay corporation tax at the rate of 35 per cent of chargeable profits, such companies shall with effect from year of income 2011 pay corporation tax at the rate of 30 percent of chargeable profits.
Dr Singh said that it is hoped that companies benefiting from the measures would be in a position to retain and reinvest a significantly higher share of their profits.