BUDGET 2022: Increase in Income Tax threshold, old age pension; gas prices decrease
The Government in its 2022 National Budget has proposed to increase the current Income Tax threshold from $65,000 to $75,000. This was disclosed by Minister within the Office of the President with responsibility for Finance Dr. Ashni Singh on Wednesday.
Dr. Singh presented the 2022 Budget to the National Assembly under the theme “Steadfast against all challenges, resolute in building our One Guyana.” He further disclosed that with immediate effect, the Government will be reducing excise tax rate further on gasoline and diesel from 20 percent to 10 percent.
The Budget also provides for the increase of public assistance payment from $12,000 to $14,000 benefitting 18,000 persons and providing $432M in disposable income to these individuals.
To support the elderly, the old age pension is proposed to increase from $25,000 to $28,000 while the Because We Care cash grant will increase from $15,000 to $25,000. In addition, the school uniform voucher is expected to increase from $4,000 to $5,000 placing $200M disposable income in the homes of 200,150 children attending public and private schools.
To support the vulnerable groups, the Government has budgeted $180M to introduce a Dialysis Support Programme to finance up to $600,000 per annum worth of dialysis treatment for each dialysis patient in Guyana.
The Budget provides for major investments in the infrastructure of the Energy sector, roads, agriculture and transport among others.
Dr. Singh said “Budget 2022 is indeed an historic budget. It sets us resolutely on the path to realising the bright future we have long awaited. It launches some of the most transformative projects in our country’s history, whose realisation is critical to resolving the bugbears and bottlenecks we have long faced, whether it be adequate and affordable electricity, a transport network that is responsive to both productive opportunities and changing patterns of urbanisation, or improved medical services for our People.”
In this regard, $76.7B was allocated for the construction of roads and bridges, $6 billion to support GuySuCo’s ongoing investment in field and factory operations, $300 million is budgeted for replenishment of the Small Business Development Fund and $3.3 billion to finance improvement and enhancement of the aesthetics of the environment across Page 45 of 92 major urban areas.
Further, $5 billion is allocated to further strengthen Guyana’s flood protection infrastructure system through sea and river defence works, $2B for the air transport sector, $73.2 billion for the health sector and $74.4 billion has been budgeted for this sector in 2022.
“When the history of our country shall have been written, future generations will consider that 2022 was the year in which Guyana’s great transformation began,” the Minister with responsibility for Finance said.
