The Guyanese government has unveiled a new income tax relief initiative, which will exempt 22,000 individuals from paying taxes on their earnings. In addition, the tax burden on those working overtime or multiple jobs will be eased. Dr. Ashni Singh, Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, made the announcement on Friday during the presentation of the 2025 budget to the National Assembly.
As part of the changes, the income tax threshold will be raised from GUY$100,000 to GUY$130,000, providing further financial relief to workers. (Note: One Guyana dollar equals approximately US$0.004).
The income tax threshold is the established amount of money that is taxable. When a person earns more than the established amount, they must pay income tax.
Increasing the threshold will place an additional GUY$8.5 billion in disposable income into the pockets of taxpayers while removing 22,000 persons from the tax bracket.
The minister also announced two other significant tax breaks, set to reduce the burdens of thousands of citizens while incentivizing hard work.
For persons who work overtime, the first GUY$50,000 of their monthly overtime pay will be tax-free.
Additionally, for persons with a second job, the first GUY$50,000 of their monthly income from the second job will be tax-free.
“These measures reward and incentivize those who work extra, those who do additional jobs and those who work longer hours,” the minister emphasized.
The government announced a reduction in personal income tax rate from 28 per cent to 25 per cent.
This measure will increase the disposable income of more than 100,000 taxpayers and is estimated to return GUY$3.6 billion to their pockets.
These interventions join a host of other measures implemented by the government since 2020 to inject additional disposable income into the economy.
