PRESS RELEASE: Budget 2026: GMSA Says Manufacturing and Services Poised for Continued Growth
Georgetown, Guyana, January 27, 2026: The Guyana Manufacturing and Services Association (GMSA) welcomes the presentation of Budget 2026, delivered under the theme “Budget 2026: Putting People First,” and acknowledges the Government of Guyana’s continued focus on policies aimed at strengthening economic resilience, diversification, and inclusive growth.
Guyana’s economy expanded by 19.3% in 2025, with the non-oil economy growing by 14.3%. The GMSA notes in particular the strong performance of the manufacturing sector, which grew by 20%, and the services sector, which expanded by 8%, both of which contributed meaningfully to the expansion of the non-oil economy.
The Association recognizes the uncertainty in the global economic environment, influenced by geopolitical developments and external market volatility. Within this context, the GMSA notes that Budget 2026 includes measures intended to strengthen economic resilience and support longer-term diversification.
The GMSA further welcomes the inclusion of several policy measures submitted to the Ministry of Finance. These include: the removal of VAT on locally manufactured furniture, including doors, moldings, and beds; the revision of the export allowance to include value-added timber products; the removal of VAT on locally manufactured jewelry; the establishment of Special Development and Economic Zones to support export-oriented manufacturing; and the proposed establishment of a Junior Stock Exchange.
The Association also welcomes the planned establishment of a Development Bank, capitalised at US$100 million, with provisions for collateral-free financing of up to GYD $3 million for small and medium-sized enterprises, as well as the removal of corporate tax on agriculture and agro-processing.
The GMSA thanks the Government of Guyana for the presentation of the G$1.558 trillion Budget 2026, and the Association anticipate ongoing collaboration with policymakers to support a stable, competitive, and diversified economy, and to advance sustainable growth across Guyana’s manufacturing and services sectors. The government’s budget allocation, especially in housing, agriculture, agro-processing and technology, will positively impact our businesses directly as companies are assured of their expansion investments for the next five years and beyond.
-END-
Read More
Press Release: GMSA Welcomes Provisions in 2025 National Budget
Georgetown, Guyana, January 23, 2025: The Guyana Manufacturing & Services Association (GMSA) is pleased to acknowledge the new measures introduced in the 2025 National Budget, which promise to bring substantial benefits to employees and businesses alike. These initiatives reflect the government’s commitment to addressing key concerns within the manufacturing and services sectors. The manufacturing sector saw an expansion of 13.5% in 2024, driven primarily by ‘other manufacturing’. This growth signifies a strategic shift from reliance on traditional manufacturing sectors such as rice and sugar towards a broader manufacturing base such as non-metallic and fabricated metal products, beverages and processed food.
The services sector, which remains a critical pillar of Guyana’s GDP, also experienced notable growth, expanding by 7.4% in 2024. The GMSA recognises that the services sector plays a vital role in providing essential support to the manufacturing industry and driving overall economic growth.
Key Highlights from Budget 2025:
Several key initiatives announced in Budget 2025 are poised to significantly benefit the private sector.
A. Labour, People, and Quality of Life:
- Income Tax Adjustments: The increase in the income tax threshold to $130,000 per month and the reduction in personal income tax rates from 28% to 25% and 40% to 35% are expected to provide much-needed financial relief to the working population, making more disposable income available.
- Tax Relief on Overtime Income: The introduction of a non-taxable allowance for the first $50,000 earned from overtime work and second jobs, will incentivize the earnings of workers who work additional hours and jobs. This will be beneficial to local manufacturers, alleviating labour shortages and meeting the growing demand in both the manufacturing and services industries.
The GMSA advocated for these measures for some time, and we are pleased to see our recommendations implemented.
- Free University and Technical & Vocational Education: With Guyana’s expanding labour market, the government’s commitment to offering free university education and technical training aligns with the GMSA’s vision of ensuring a skilled and educated workforce. The GMSA also advocates for greater emphasis on STEM (Science, Technology, Engineering, and Mathematics) and TVET (Technical and Vocational Education and Training) fields, which include disciplines crucial for the country’s long-term development.
B. Energy Interventions:
- Gas-to-Energy (GtE) Project: The development of an additional power plant under the Gas-to-Energy (GtE) project aims to provide additional and affordable power supply for businesses and consumers. This will catalyse the full potential of the manufacturing sector by providing more affordable and reliable energy for production.
- Removal of VAT on Backup Generators: The removal of VAT on backup generators will offer immediate relief to small businesses struggling with the challenges of the current electricity distribution.
C. Agro-Processing:
The GMSA advocated for several measures aimed at supporting agro-processing, which were included in Budget 2025:
- Removal of VAT on Agricultural Machinery: This will reduce costs for the agro-processing sector, encouraging investment in modern machinery that will improve efficiency and productivity.
- Removal of VAT on Automated Poultry Pens and Veterinary Supplies: This measure will enhance the capacity of the poultry industry by improving efficiency and addressing ongoing challenges in livestock health, thereby boosting local production and reducing dependency on imports.
GMSA’s Vision for Continued Growth
The GMSA is committed to collaborating with the government on policies that will positively impact the manufacturing sector. The association is hopeful that further initiatives will be considered to drive continued growth:
- Expansion of the Zero-Rated List: The GMSA proposes expanding the zero-rated supplies to include more competitive locally made products, such as chowmein and vermicelli, which will stimulate local consumption and support domestic manufacturers.
- Corporate Tax Adjustment: The GMSA urges the government to consider adjustments to corporate tax rates to further enhance the competitiveness of Guyanese businesses.
- SME Support for Market Development: The establishment of a dedicated budget for SMEs in market development and exhibition will help local businesses access international markets and grow their reach.
As the country’s population continues to grow, driven by an influx of foreign nationals, local consumption has increased significantly due to the rising demand from a diverse population. This trend is encouraging for businesses, as it signals demand and new opportunities for growth, fostering a favourable environment for business expansion and profitability.
The GMSA remains committed to collaborating with the government to ensure that policies continue to support the manufacturing and services sectors and that Guyana’s private sector remains competitive, resilient, and poised for success in the years to come.
-END-
Read More