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Budget 2026 should lower corporate taxes to help cushion cost of living – Low
(Kaieteur News) – This year’s national budget will be presented today amidst a whirlwind of challenges that pose significant risks to consumers and businesses alike. To ensure lower oil price revenue does not have a damaging impact on growth, economist, Elson Low has suggested that the fiscal plan implement lower corporate taxes to not only trigger new business development, but also provide relief to consumers.
Speaking to Kaieteur News, Low pointed out that Guyana, like other petrostates, is preparing for the potential of sustained lower oil prices. This is largely due to the recent move by United States President, Donald Trump who not only abducted the president of Venezuela at the time, but announced sweeping measures to run the country and control its oil resources. Trump has since revealed his intention to use Venezuela’s oil to lower the commodity price to US$50 per barrel.
Economist, Elson Low
To this end, Low urged Guyana’s government to use this year’s budget to position the country to negotiate uncertainty and lower revenues.
Currently, Guyana is producing an average 900,000 barrels per day (bpd) in Stabroek Block, operated by American oil giant, ExxonMobil. The company has four Floating Production Storage and Offloading vessels (FPSOs) in operation with three other projects under development to come on stream over the next three years.
Low said while a reduction in oil prices could yield a lower cost of living, as fertiliser and transportation costs are likely to fall, without competition in the market, consumers may not benefit and growth will slow.
As such, he suggested, “the government should prioritise measures to encourage new business development, such as lowering corporate taxes and introducing innovation-based tax holidays, to incentivise this. Greater competition in the market will help ensure cost savings from these lower commodity prices are passed on to consumers while also providing more stimulus for growth in the non-oil economy.”
Low believes that by continuing with a high tax and low competition economic model, the country could suffer a period of economic stagnation and high cost of living until oil prices rebound.
The 2026 budget will be laid today in the National Assembly by Senior Minister in the Office of the President, with responsibility for Finance, Dr. Ashni Singh. Based on the revised Schedule of the Natural Resource Fund Act (NRF), government will have about $500B or US$2.4B in oil revenue at its disposal to fund its development agenda.
Opposition party, A Partnership for National Unity (APNU) has cautioned the administration against expanding the country’s debt burden, at a time when oil prices are likely to continue along the downward trajectory.
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