Budget 2026: Guyana Removes VAT on Local Furniture, Jewellery in Push to Boost Local Industry and Reduce Consumer Costs
By Staff Reporter, Georgetown
In a major fiscal reform announced on January 26, 2026, the Government of Guyana unveiled bold changes in the 2026 National Budget aimed at stimulating local industries, supporting small and medium enterprises, and easing the cost of living for citizens. Among the most notable measures is the removal of Value Added Tax (VAT) on locally manufactured furniture and jewellery, a move that has been welcomed by business owners, artisans, and consumers alike.
Presented by Finance Minister Dr. Ashni Singh to the National Assembly under the theme “Putting People First,” the budget reflects the Government’s ongoing commitment to creating an enabling environment for homegrown production, employment growth, and value addition within the country’s productive sectors.
A Strategic Move to Empower Local Manufacturing
One of the standout features of Budget 2026 is the government’s decision to remove VAT on a range of locally made furniture items, including structural products like doors, beds, mouldings, and other household wood products. This policy is expected to lower the cost of production and final sale prices, making locally made furniture more affordable for consumers while improving the competitiveness of Guyanese manufacturers.
By eliminating VAT on these items, policymakers hope to bolster the forestry and furniture manufacturing subsectors, enabling them to expand operations, generate jobs, and seek greater export opportunities within the Caribbean and beyond. The move aligns with broader efforts to reduce barriers to industrial growth and strengthen value chains within the national economy.
Supporting Artisans and Creative Enterprises
In addition to furniture, the removal of VAT on locally produced jewellery is a significant development for Guyana’s creative industry. Jewellery makers—many of whom are small business owners, solo artisans, or members of micro-enterprises—stand to benefit from reduced production costs, improved price competitiveness, and an enhanced ability to reinvest in their businesses.
This financial relief is expected to encourage value addition within the sector, expand opportunities for local designers, and attract more youth and entrepreneurs into creative crafts and design, contributing to a more diversified and resilient local economy.
Broader Economic Impacts of the Tax Reform
The VAT removal is part of a broader set of fiscal reforms designed to stimulate economic activity and make essential goods more accessible to the Guyanese public. The 2026 budget, which totals approximately $1.558 trillion, represents a nearly 13 percent increase over the previous year, reflecting strategic prioritization of social support, industry incentives, and inclusive growth policies.
According to the Finance Minister, the government’s targeted tax measures are intended to put more disposable income in the hands of consumers and entrepreneurs, reduce the overhead for local manufacturers, and create lasting economic momentum that benefits both urban and rural communities.
In combination with VAT removal on furniture and jewellery, the budget also includes other initiatives such as duty and VAT removal on security equipment to support safer communities, as well as changes in vehicle taxation to make transportation more affordable.
Industry and Consumer Reactions
Early reactions from the local business community have been largely positive. Furniture manufacturers and woodworking companies have expressed confidence that the tax relief will help revive local production, reduce reliance on imported goods, and empower domestic brands to offer competitive pricing without compromising quality.
Creative professionals in the jewellery sector, many of whom operate as small enterprises, also welcomed the policy, seeing it as recognition of the economic and cultural value of local artistry and craftsmanship. Several artisans noted that removing VAT could help them scale production and invest in design innovation without passing additional costs to customers.
Consumers, meanwhile, are hopeful that prices of everyday furniture and crafted jewellery will become more affordable, especially at a time when inflation and cost of living remain central concerns for many households.
Government’s Vision for Sustainable Growth
Finance Minister Dr. Ashni Singh emphasized that the VAT removal measures are part of a long-term vision to promote sustainable growth, strengthen local value chains, and support entrepreneurs at every level of the economy. He framed the initiative not only as tax relief but as a strategic investment in Guyana’s productive capacity and the wellbeing of its citizens.
The 2026 Budget’s “Putting People First” theme underscores the government’s aim to ensure that economic policies translate into tangible benefits for families, workers, and businesses, fostering a more inclusive and resilient national economy.
Looking Ahead
As the VAT removal on local furniture and jewellery takes effect, industry experts, business associations, and government officials will be monitoring its impact on production levels, pricing trends, and employment. Many see this reform as a precedent-setting move that could inspire additional measures to support domestic producers in other sectors.
With fiscal policies increasingly focused on growth, sustainability, and citizen wellbeing, Guyana’s 2026 Budget is being viewed as a milestone in the nation’s economic development journey—balancing tax relief with strategic investments to build a stronger and more diversified economy.
