Georgetown: The 2015 National Budget presented Monday by Minister of Finance Winston Jordan covers 18 measures for the benefit of pensioners, motor vehicle and house owners, and medium and small scale miners, among others.The measures under the budget themed: ‘A Fresh Approach to the Good Life in a Green Economy” are as follows:
1. Amendment to the First Schedule to the Customs Act:
The 2015 Budget proposed an amendment to the First Schedule of the Customs Act Cap 82:01 for exemption on custom duties for the following:
· Fishing boats, spare parts, equipment for fishing boats and equipment and supplies for use in the processing plant which the Commissioner-General is satisfied are imported for use in the Fish/Seafood and the Aquaculture Industry.
· Exempt from Customs duties on motor vehicles and ATVs for Toshaos in approved Amerindian Communities.
2. Amendment to the Excise Tax Regulations 2005:
An amendment to the Excise Tax Regulations 2005 for the following persons to be exempted from the payment excise tax for motor vehicle:
· Eligible members of the Joint Services, qualifying under Section 23 of the Customs Act Cap. 82:
· Toshaos in approved Amerindian communities (for motor vehicles and ATVs.)
· A supply of motor vehicles under a Government contract entered into on behalf of the Government with taxable persons in accordance with that contract.
3. Amendment to the Income Tax Act Cap. 81:01:
An amendment to the Fifth Schedule to the Income Tax Act Cap. 81:01, in keeping with representation by the fishing industry for shrimp to be made eligible for the export allowance granted to non-traditional exports.
4. Amendment to the Value Added Tax Act 2005:
The following items will now attract zero VAT: yogurt, cereals, fresh carrots, Milo and Ovaltine, Nestum, mustard and mayonnaise, locally-produced fruit juice, locally-made chowmein, vinegar, locally-made uncooked pasta, ketchup, chicken sausages in packets, locally-produced Chinese sauce, baking powder, liquid detergent, household cleaning agents, rolls of paper towels, household cleaning agent, and computer printers for non-commercial use.
5. Tax Exemptions to Medium and Small Scale Miners:
Eligible gold miners to be exempted from the payment of custom duties on fuel, matting, ATVs, jack hammer drills, flex hoses, expanding metals, pumps, pump housing, impellers, shaft and engines.
6. Mortgage Interest Relief:
Repeal of Section 8 of the Regulations of the Income Tax Act Cap. 81:01, and the amendment to Section 3 of the Regulations by the insertion of the following:
“In ascertaining the chargeable income of a person who is eligible for Mortgage Interest Relief there shall be allowed a deduction against his chargeable income, the amount of the interest paid to the Financial Institution in the year preceding the year of assessment.” Chargeable income shall have the same meaning as defined in the Income Tax Act.
6.9 In ascertaining the amount of the refund payable on the eligible relief, the Commissioner General will ascertain the chargeable income of the taxpayer. If it is determined that the chargeable income is not sufficient and will result in reducing the chargeable income below zero, then the refunds paid on the mortgage interest relief to the taxpayer will be reduced accordingly and he will not be eligible for the full relief. The other change is that lending and licensed financial institutions will not be required to provide a statement of interest paid on the mortgage annually.
7. Amendment to Income Tax Act Cap:
Amending the Income Tax Act Cap, so that workers will no longer be paying income tax on their National Insurance contributions.
8. Reduction in the Berbice Bridge Toll:
With effect from September 1, 2015, for the toll for passenger cars and buses to be reduced from $2,200 to $1,900, a 13.6 % decline. At the same time, the toll for all other types of vehicles to be reduced by 10 %.
9. Increases in Old Age Pension and Public Assistance:
Effective from September 1, for every pensioner to benefit equally from a monthly pension of $17,000, a 30 % increase on the present amount of $13,125. Effective from September 1, 2015, a 10 % increase in public assistance, rising from $5,900 to $6,500 monthly.
10. Salary Increase:
Effective July 1, 2015, an increase in the minimum basic salary of each public servant to $50,000. While, all other public servants will receive a 5 % salary increase plus an additional $5,000 monthly. These increases are payable to workers who were employed on or before January 1, 2015.
11. Hourly Rates for Part-time Sweeper Cleaners:
With effect from September 1, 2015 for every part time hourly paid cleaner to receive $312 per hour, reflecting a 54 % increase.
12. Withdrawal of NIS Subsidy:
The withdrawal of the NIS subsidy with effect from September 1, 2015.
13. Trade Unions:
An allocation of $11 million to strengthen the capacity of the trade unions to better represent the rights of worker.
14. Uniform Assistance Programme:
An increase in the uniform allowance voucher from $1,500 to $2,000. Additionally, for persons receiving payment for sewing uniforms in remote hinterland locations to receive a 25 % increase on the amount, from $800 to $1,000.
15. Georgetown Restoration Programme:
An allocation of $300 million for the Georgetown Restoration Programme, encompassing an intense clean-up campaign, while enforcing laws on littering.
16. Community Infrastructure Improvement Programme (CIIP):
An allocation of $542.7 million to fund a remodelled Community Infrastructure Improvement Project (CIIP) aimed at enhancing the aesthetics of communities and preserving and maintaining critical community infrastructure.
17. Sustainable Livelihood and Entrepreneurial Development (SLED):
An allocation of $115 million, for the next four months, for the re-introduction of the Sustainable Livelihood and Entrepreneurial Development (SLED) initiative aimed at stimulating community growth opportunities at the grassroots level.
18. Linden Enterprise Network:
An allocation of $155 million, to support this venture in an effort to re-energise business activity in Linden and its environs.
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