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Guyana government cuts excise tax on fuel


Adriel

Guyana government cuts excise tax on fuel
Senior Minister for Finance in Guyana, Dr Ashni Singh - FP

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Georgetown – Eight months after reducing the excise tax on fuel, the Guyana government announced a further cut that will see prices at the pump falling.

Senior Minister for Finance, Dr Ashni Singh announced on Thursday that government will be lowering the excise tax rate on both gasoline and diesel from 35 per cent to 20 per cent with immediate effect.

“This reduction will aid in cushioning the impact on domestic consumers, particularly the travelling public as well as those productive sectors for whom fuel is an important input,” he said.

“The prices at the pump are expected to also be reduced with immediate effect.”

The tax reduction brings the rate to half of what it was in February.

On February 17 this year, the government reduced the excise tax rate on both gasoline and diesel from 50 per cent to 35 per cent.

Since that time, oil prices continued rising steadily on the world market, moving from over U.S. $60 a barrel to over U.S. $80 a barrel at close of trading on October 5, 2021.

That steady rise in the world price has resulted in prices increasing on the domestic market also.

Singh explained the adjustment in the excise tax rate on fuel from time to time was part of the measures that the government implemented to cushion the domestic impact of world market price fluctuation.

He emphasised the implementation of these measures were in keeping with President Irfaan Ali’s commitment to ensuring that Guyanese consumers continue to be protected from escalation in fuel prices on the world market as far as possible.

(CMC)