Increased imports of motor vehicles and alcoholic beverages helped drive a $10.4 billion increase in value-added tax (VAT) and excise tax collections during the first half of 2026, according to the Ministry of Finance’s Mid-Year Report.
The report showed that VAT and excise tax collections reached $71.5 billion at the end of June, compared with $61.1 billion during the corresponding period last year.
Of the increase, VAT collections grew by $5.9 billion, while excise tax collections rose by $4.5 billion.
“The higher VAT collections is largely attributed to an increase in the importation of goods, while the growth in excise tax collections in the first half of 2026 was driven by higher importation of motor vehicles and alcoholic beverages,” the report stated.
The higher tax collections came as Guyana recorded increased spending on imported consumer goods during the first six months of the year.
According to the report, imports of consumption goods increased by 21.9 per cent to US$747.3 million when compared with the first half of 2025.
Motor cars were among the main contributors to that increase, with imports growing by US$43.5 million. Imports of other semi-durable goods increased by US$28.4 million, while beverages and tobacco recorded an increase of US$26.5 million.
The increase in motor vehicle imports was also reflected in borrowing by households during the period.
The Mid-Year Report showed that household lending increased by 14.6 per cent to $75.8 billion at the end of June. Within that category, credit for motor cars recorded particularly strong growth, climbing 29.3 per cent to $43 billion.
Overall, the Ministry said tax revenue accounted for 52.4 per cent of Central Government revenue collections during the first half of 2026.
Year-on-year growth in tax revenue was attributed mainly to higher collections from income taxes, VAT and excise taxes, and trade taxes, which the report linked to expanded employment and continued economic growth across the public and private sectors.
Income tax collections reached $145.7 billion, representing an 18 per cent increase over the first half of 2025. Private-sector corporation taxes accounted for $67.4 billion, while withholding taxes reached $37.1 billion.
Customs and trade taxes also increased during the period, reaching $26.7 billion, or 19.7 per cent above the amount collected during the first half of last year.
The Ministry said the increase was mainly due to higher import-duty collections, which grew by $3.6 billion and accounted for 85.3 per cent of revenue collected under that category.
Central Government current revenue totalled $493.9 billion during the first six months of 2026. However, when revenue from the Natural Resource Fund, carbon credits and the Guyana REDD+ Investment Fund is excluded, current revenue collections increased by 18.7 per cent to $279.5 billion compared with the corresponding period in 2025.
