The Department of Public Information has released a salary calculator to aid person calculating their new taxes under the proposed 2017 structure, as outlined by Finance Minister Winston Jordan during his budget presentation on November 28, 2016.
The calculator is available at dpi.gov.gy/salary and according to the release the Salary Calculator will show the increased take home salary, total taxes to be paid and the National Insurance Scheme contribution.
The release also noted that the new tax measures will inject over $9.5BILLION into economy.
The reduction of the Value Added Tax from 16% to 14% alone will dent the national treasury by $4.8BILLION while the loss from the reduction in Personal Income Tax will cost another $3.8 BILLION.
Following are the details of how much each measure is calculated to cost the treasury:
1. VAT reduction from 16% to 14%:
Cost to treasury: $4,817,000,000
2. Reduction of Personal Income Tax from 30% to 28%:
Cost to the treasury: $3,826,000,000
3. Reduction in Corporate Tax from 30% to 27.5%:
Cost to treasury: $752,000,000
4. Increasing of VAT threshold from $10m to $15m:
Cost to treasury: $200,000,000
Total cost to the treasury: $9,595,000,000
These figures have been provided by the Ministry of Finance.