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VAT on education scrapped; tributors tax on miners slashed by 50 percent

FLASH BACK: Parents, teachers and students of several private schools picketing the Ministry of Education.

The 14 percent Value Added Tax (VAT) on all education services has been scrapped, Finance Minister Winston Jordan announced.

He said, in the 2018 Budget Speech, that the decision was taken “in view of the representations” made to have the tax removed.

Jordan said government would lose GY$342 million now that the tax has been abolished.

At the same time, he indicated that educational institutions must ensure that they pay up all other taxes. “At the same time, efforts will continue by the GRA (Guyana Revenue Authority) to ensure these institutions become tax compliant,” he said.

The decision came one year after the Finance Minister had announced the imposition of the tax, sparking off weeks of protest in front of a number of government offices including the Ministry of Education.

The 14 percent VAT on education was regarded as one of the more unpopular decisions by the David Granger-led administration in less than two years in office.

The Finance Minister also announced that, following representation by the Guyana Gold and Diamond Miners Association, the tributors tax on gold miners has been slashed from 20 percent to 10 percent, and they would still be required to file annual tax returns.

In relation to the 2 percent gross tax, he said a sliding scale has been introduced. If the price of gold is under US$1,100 per ounce, the tax would be 2 percent; US$1,100 to US$1,300 it would be 2.5 percent; US$1,300 to US$1,600 it would be 3 percent and if the price increases to US$1,600 per ounce, the tax would be 3.5 percent.

  • rs dasai

    What nonsense. You cannot lose what you never had.

    • Col123

      You sure about that?….they had 342 mil in the bag…vat on private education …they still have education…

      • rs dasai

        Col123
        The tax was to be on ‘tuition’ (?) not on education ‘services’.Big difference. What say U?

        • Col123

          OK…for argument sake…without the education part, you wouldn’t have tuition … so you have tuition …it is a constant ..which is/was taxed….and then there is education …so tuition is a tangible…it can be taxed…education is an intangible…but can be assigned cost/value!…eg cost per credit hours etc..

  • powerplayer

    Where did you go to school Sir. The Govt would lose 342 Million. Jesus christ does this Minister have accumulated Leave. Please have him take all.

    Mr G you have too many Jokers in your deck. You need to reshuffle

  • rudeo

    Will the fees be correspondingly reduced? Not holding my breath on that.