The Government is moving to deliberately push investment and higher-paying jobs into Guyana’s hinterland, riverine and outlying regions through a package of targeted tax incentives, as it acknowledges that the country’s current economic boom is still heavily concentrated in Georgetown and Region Four.
Speaking on the issue, the Vice President said that while sectors such as oil and gas and services have expanded rapidly- evidenced by new hotels, restaurants and other businesses in the capital- this growth has not been reaching Amerindian communities, riverine areas and regions such as Ten, Six and parts of the Essequibo Coast at the pace the government would like.
To address this imbalance, President Dr. Irfaan Ali has announced a series of incentives aimed at driving private investment into job-creating sectors located outside the traditional economic hubs. These measures, which will be detailed further by Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, are intended to support agro-processing and essential services such as veterinary care, particularly in regions where economic activity remains limited.
Central to the strategy is diversification. The Vice President said the government is keenly aware of the risks faced by countries that rely too heavily on oil revenues, warning of the “Dutch disease,” where economies struggle when oil prices fall. “We don’t want to put all of our eggs in the oil basket,” he said, pointing to examples worldwide where over-dependence on oil has led to economic hardship.
Under the new framework, businesses operating in approved sectors that produce for export will benefit from zero corporate tax. The same incentive will apply to companies producing locally to replace goods that Guyana currently imports. As an example, he noted that if a local company begins producing items such as broccoli to substitute imports, that company would not be required to pay corporate tax.
In addition to sector-based incentives, the government is also offering location-based tax relief. Businesses that choose to establish operations in certain regions will be eligible for tax holidays or tax-free status, a policy first implemented for Region Ten during his tenure as president. The aim, he said, is to spread economic activity and higher-paying jobs across the country, easing labour shortages in Region Four while creating opportunities elsewhere.
