No VAT on agriculture machinery, generators

The Guyana Government has announced the removal of VAT on backup generators.

“We will remove VAT on the electricity generators, which will reduce the cost for businesses who still need to buy generators and back up electricity.”

This proposal was in recognition of the representation made by the private sector about the burden they face in carrying the cost of redundant power given the inadequacy and unreliability of the power generated from the national grid.

While the minister acknowledged the current challenges in the electricity sector, he noted that these will be addressed with the operationalization of the Gas-to-Energy project which includes a 300-megawatt combined cycle power plant.

Removal of VAT on agri machinery 

VAT was also removed on the importation of agricultural machinery and according to Minister Singh in his presentation of the 2025 Budget, this move will cost the treasury more than $1 billion annually.

Already, the People’s Progressive Party/Civic Administration has removed VAT on heavy-duty machinery used for the both the agriculture and mining sectors.

“In order to support expansion of the agriculture sector, we’ve proposed to remove import VAT on the importation of any other equipment and machinery where VAT has not already been removed, thereby reducing the cost of inputs for food production. This is expected to cost the Government in excess of $1 billion [annually].”

Poultry sector

In addition, to further support the agriculture sector, VAT will also be removed on automated poultry pens and veterinary supplies, the minister announced

He went on to note that this is in keeping with the Government’s vision to promote domestic food production with the aim of having the poultry sector also meet regional demand.

“We will bring to this National Assembly appropriate amendments to enact provisions for accelerated depreciation for capital assets such as machinery and equipment used in the production process in order to allow producers to recover these costs more quickly, reducing the financial burden on them, enabling them to recapitalise and to expand, and to modernise their production facilities.”