See below full statement issued by the Guyana Manufacturing and Services Association (GMSA):
As a conjunction of factors continue to impose a debilitating effect on Guyana’s Private Manufacturing Sector, the unprecedented Covid-19 pandemic proved to be relentless in disrupting global economic activity. The imbalance of supply and demand for maritime services has inevitably led to exorbitant increases in transportation costs, further threatening Guyana’s manufacturing, services, commerce and trade activities.
The Guyana Manufacturing and Services Association (GMSA) therefore commends the Government of Guyana and His Excellency, President Dr. Irfaan Ali, on the timely decision to reduce the adverse impact of increased freight costs on Customs Duties, Excise Taxes and Input VAT calculations, by reverting to pre-pandemic estimates.
With the impending amendment of the Customs and Value Added Tax (VAT) Acts to reflect this essential concession, the GMSA is confident that the Manufacturing Sector in particular, will be regenerated to a more competitive position for regional and international trade, with an exponential increase in exports.
Additionally, it must be noted that the removal of VAT on various commodities that are not domestically available for primary production, and the reversal of VAT on all exports, demonstrated the Government’s commitment to sustainable development and growth of local businesses and the economy. These benefits encouraged more upstream manufacturing, and assisted companies to remain operational, despite the challenges over the past year.
Further to the Government’s assurance of monitoring the cost of goods and services, the GMSA intends to work with its members to ensure that all cost-saving measures are transferred to the relevant sectors under its purview and by extension, consumers. The Association reminds all stakeholders that the concession is applicable to all invoices dated 01 August, 2021 and will be in effect until 31 January, 2022.