President Ali announces new $2.6B relief measures for citizens - To target most vulnerable in society

President Ali announces new $2.6B relief measures for citizens – To target most vulnerable in society

Aug 17, 2021 News

Kaieteur News – With the severe economic effects of the COVID-19 pandemic and with the aim of giving further support to citizens, President Irfaan Ali on Monday night announced an additional $2.6 billion relief programme for Guyanese. The programme, according to the President, will target the most vulnerable in society.
In his address, President Ali announced that the Government will be issuing a one-off grant of $25,000 to all old-age pensioners, equivalent to one month of old-age pension. This grant will benefit some 65,000 persons and place an additional $1.6 billion of disposable income in the hands of the elderly.
Further, the Head of State announced an electricity credit paid to Guyana Power and Light Inc. (GPL) on behalf of households consuming not more than 75 kilowatts per hour (kWh) per month. The credit to each household will be equivalent to one month of its electricity bill and will inject more than $200 million of disposable income to more than 40,000 households.
And lastly, the Government will begin the payout of a one-off grant of $25,000 to all public assistance recipients and persons living with disabilities. This grant will benefit about 25,000 persons and place more than $600 million of additional disposable income in their hands.
President Ali said that these three measures will provide additional income support of $2.6 billion to our most vulnerable households. This comes on top of the COVID-19 relief cash grant the Government rolled out when it assumed office and which is currently in its second phase. Once this phase is finished, the COVID-19 relief grant would have placed over $8 billion in the hands of families across the country, he noted.
“My government remains committed to supporting all Guyanese. This is your Government delivering to you again.
I say to you that we remain committed and in the coming months, we will continue to work in finding ways in which we will continuously make your life easier.
Ways in which we will continue to make you more prosperous. Ways in which we will deliver to you a life that is fulfilling and satisfying,” the President assured.
Notably, the Head of State also indicated that the payout for a $7.8 billion relief package or farmers who suffered losses due to the unprecedented nationwide flooding will commence this week.
This $2.6 billion relief programme comes on top of other relief measures the Government instituted when it took office in August of last year.
Through its 2020 and 2021 budgets, the Government removed the Value-Added Tax (VAT) on water and electricity, as well as on basic food items, basic household necessities, and medical and educational supplies.
It also reduced water tariffs by five percent, and reduced by 50 percent licence fees that had been increased since 2014.
Further, the Government moved to make home ownership and home construction more affordable by removing the VAT on basic construction materials, increasing the ceilings on low-income mortgage loans from $8 million to $12 million and on loans granted by the New Building Society from $12 million to $15 million, and doubling the ceiling on loans eligible for mortgage interest relief from $15 to $30 million.
Reductions in the cost of connectivity by taking off the VAT on data for residential and individual use and on cellular phones was also initiated.
“In order to reduce the cost of doing business and to create jobs for all Guyanese, we removed the VAT on heavy machinery and equipment, removed corporate income taxes on companies investing in the education and health sectors, and reduced land rental charges back to 2014 levels. The latter measure alone put $1.4 billion back into the hands of farmers,” the President said.
Just last week, a cap on the freight charges used to calculate taxes on imports was introduced. This measure will allow for a saving of $4.8 billion by consumers and businesses.

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President Ali announces new $2.6B relief measures for citizens – To target most vulnerable in society

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