Guyana Roundup: Tax waivers, electricity access, EU chamber of commerce

Tax waivers

Guyana is waiving billions in taxes due to the Production Sharing Agreement (PSA) signed with US oil major ExxonMobil and its partners. Since production activities began in December 2019, Guyana has been losing resources to the oil companies, local media Kaieteur News reported. The PSA states that ExxonMobil Guyana Limited and its affiliates are exempt from tax, value-added tax, excise tax, duty, fee, charge, or impost in respect of income derived from petroleum operations, property held, or transactions except as specified under the agreement. Guyana has lost more than two times the revenue it earned in tax waivers, according to Kaieteur News.

Electricity access

The Guyana government's Solar Home Systems Project improved electricity access for 473 households in hinterland communities on November 18. The Minister of Housing and Water for Guyana said that the government will continue to make significant investments in the country's future, pointing out that over 8,700 solar panels had been installed throughout the region for almost $500 million, Kaieteur News reported.

EU chamber of commerce

The EU/Guyana Chamber of Commerce was launched on November 20 at the residence of EU Ambassador René van Nes, with businessman Gregory Dean as its head. According to local media, the Stabroek News, the Guyana Minister of Public Infrastructure who was also present at the launch said that there is a need for private-sector collaboration with the Guyana government to ensure Guyana's policies are followed.

EU investments

Guyana President Irfaan Ali has opened the door for business and investment opportunities in the country, highlighting the potential benefits for both Guyana and the European Union. The President at the opening ceremony for the first EU economic mission to Guyana said, “We are here to tell you in a convincing way that the door for our opportunities is open so that it can become your opportunities also,” he is quoted by local media the Guyana Chronicle.

Dry season inflation

The Guyanese government has taken a proactive approach to support farmers during the prolonged dry season, aiming to mitigate external challenges and ensure essential goods are available in the market. President Irfaan Ali said that the government has injected significant funds to assist farmers, including providing fertiliser and working towards having farmers' markets across the country, the Guyana Chronicle reported. “We’re working on supporting the farmers so that their input costs will come down. But they are faced with a challenge that even with reducing input costs, the climatic condition is severely affecting their productivity,” the President is quoted by the Guyana Chronicle.