What the Budget means to you
Stabroek News
March 27, 1999
1. No new taxes in 1999.
2. Income Tax (Depreciation Rates) Regulations.
These regulations allow the Commissioner of Inland Revenue in his
discretion to grant higher than the normal rates, as set out in the
schedule. The government will amend these regulations to allow for a rate
that is higher than is currently allowed for electrical equipment, including
computer equipment. The rate that applies currently is 20%. The
necessary amendments to the Income Tax (Depreciation rates)
Regulations, will be presented to give effect to a 50% rate of allowance for
such equipment, commencing January 1, 1999.
3. Property Tax
The Property Tax Act requires the filing of a return where the net
property arrived at by allowing all liabilities at the end of the year to be
offset against total assets revalued at 1st January, 1991, exceeds $500,000
for individuals. Assets acquired after 1991 are included at the cost of
acquisition and improvements made thereafter. The law will be amended
so individuals only have to file returns if they possess net assets in excess
of $1.5million.
The tax-exempt threshold for both individuals and companies will be
increased. The amounts currently exempted from taxes are $5 million and
$500,000 respectively. These will be increased to $7.5 million and $1.5
million respectively from January 1, 1999.
4. Income Tax (In Aid of Industry) Act
To attract non-traditional investments for new industries by granting
favourable accelerated allowances in accordance with the Income Tax (In
Aid of Industry) Act amendments will be made to the first schedule to
include industries engaged in the production of Ceramics, Sanitary
Napkins, etc.
5. Stamp Duty
Legislation will be introduced to reduce stamp duty. This will give relief to
companies seeking to increase their capital base.
6. The Common External Tariff.
The maximum external tariff will be reduced to 20 percent, from 25
percent. The legislation to give effect to this change will be tabled shortly.
This should benefit the consuming public.
7. Review of fiscal incentives.
The government will conduct a sector by sector review of incentive
regimes to determine the attractiveness of existing regimes in each sector
relative to the rest of the countries in the region.
8. Tourism
The government will establish a Tourism Board with a subvention of $15
million during 1999. Once the Board is established, a review of the
incentives' regime for this industry will be conducted with participation of
the Board
9. Poverty programme
$119 million has been budgeted to continue the poverty alleviation
programme during 1999.
l0. Neighbourhood Democratic Councils and Municipalities.
$250 million has been budgeted to assist these bodies in the
implementation of their programmes.
ll. Measures to compensate labour
a) Key and Critical Supplement
The government has committed itself to pay $180 million over 3 years to
certain categories of officers whose posts are deemed to be vital to the
civil service. $70 million has been budgeted to continue this programme in
1999.
b) Wage Increase
Increase in wages for public servants are currently being negotiated with
the unions. As such, no increase can be announced at this stage. However,
once the negotiations are completed, the government will return to the
National Assembly for supplementary resources to meet the obligation. As
in the past, workers outside the traditional public service, such as the
disciplined forces and teachers, and pensioners, can expect to benefit from
increases in 1999.
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