Guyana’s VAT Collection Grew by $8.9B at Mid–year

• Value-added tax (VAT) and excise tax collections grew by $8.9 billion, or 21.5 percent, when compared with the level at the end of June 2020. This is according to the Ministry of Finance Mid-Year Report. 
• The growth reflected in this area was primarily due to a $1.8 billion increase in VAT collections from imported goods and services, outweighing the $0.6 billion contraction in VAT collections from domestic supplies. 
• The figures undermine government’s stated commitment to reduce taxes and ease the cost of living during their elections campaigns. Moreover, the Guyana Revenue Authority (GRA) mere weeks ago complained about the “drastic reduction in filing of VAT returns by VAT Registrants”. 
• Earlier this year, a host of tax reductions were announced by Finance Minister, Dr. Ashni Singh. These included lowered water rates and removal of VAT on residential and individual data usage, as well as on certain food and household items. The Government had also promised no new taxes.

(Source: Kaieteur News)