Below is a statement from GMSA on Budget 2022:
The Guyana Manufacturing Services Association (GMSA) commends the Government for its historic and transformational budget presented Dr. Ashni Singh; Senior Minister in the Office of the President with responsibility for Finance. Budget 2022 will undoubtedly pave the way for building a modern Guyana.
As is customary, the GMSA made an extensive submission for Budget 2022 to alleviate many of the challenges its membership faces within each of the major sectors. A significant number of tax measures and budget allocations will help the manufacturing sector advance competitiveness and capacity building. While the GMSA was hopeful for more reduction of the VAT rate and adding more goods and services to the zero-rated & exempt supplies, the
association recognizes that this was a very strategic budget which strikes a balance for both businesses and individuals. The GMSA also appreciates that there were no new taxes proposed.
With this year’s allocation in infrastructural development, more jobs will be created and in turn businesses across various sectors will see an increase in revenue. Notwithstanding this, Guyana will see a sudden demand for more skilled and unskilled workforce thus creating a spike in employment cost.
Much of the GMSA’s membership is made up of small business owners especially in the Agro-Processing, Forestry and Services sectors seeking financing for expansion. Access to capital has been a major hinderance to for growth. The GMSA anticipates the benefit of affordable financing and revolving fund stemming from proceeds of Guyana’s new and emerging oil sector. Hence, it is our hope that the recently passed Natural Resource Fund Bill will aid to the facilitation of affordable capital. GMSA complements the Government’s initiative in 2021 to facilitate grants valued at $329 million to Small Business Bureau (SBB) which benefited many small businesses. The GMSA would like to ask for an expansion of the grant component to further improve small business capabilities and readiness
for Local Content opportunities.
In addition, the GMSA recommends more robust efforts made for funding towards our regulatory agencies like the Government Analyst-Food and Drug Department (GA-FDD), Guyana National Bureau of Standards (GNBS), Guyana Revenue Authority (GRA), and Environmental Protection Agency (EPA). These agencies play a vital role for the acceleration of industries and development to international standards and compliance.
It is noteworthy to mention that the weakening of competitiveness in recent years has put our country at a major disadvantage in the traditional sectors. The GMSA would like to see resuscitation of the National Competitiveness Council and an update to the National Competitiveness Strategy. The GMSA is extremely pleased about the budgeted amount of $245 million for the establishment of new industrial estates in Regions 2 and 10. Industrial
estates with closer proximity to raw material sources will certainly help with competitiveness as more manufacturing facilities are established. Furthermore, the Government’s major investments in alternative energy and hinterland road development will eventually strengthen our competitiveness.
The GMSA looks forward to continued collaboration with the Government as we work together in building a modern Guyana.
