๐๐ฒ๐ ๐ ๐ฒ๐๐๐ฎ๐ด๐ฒ
Between 2015 and 2019, households in Guyana saw nearly 30.1% of their household income consumed by VAT and fees under the APNU+AFC governmentโs policy of expanding VAT to over 200 goods and services. From 2021 to 2025, under the PPP/C government, the relative tax bite fell to just 9.34% of household income, even as total VAT collections remained high. As a result, average monthly disposable income per household jumped from GYD 41,632 to GYD 250,591โa sixfold increase.
๐ง๐ต๐ฒ ๐๐ฎ๐ฐ๐ธ๐ฑ๐ฟ๐ผ๐ฝ: ๐ง๐๐ผ ๐ฃ๐ผ๐น๐ถ๐ฐ๐ ๐๐ฟ๐ฎ๐, ๐ง๐๐ผ ๐ฉ๐ฒ๐ฟ๐ ๐๐ถ๐ณ๐ณ๐ฒ๐ฟ๐ฒ๐ป๐ ๐ข๐๐๐ฐ๐ผ๐บ๐ฒ๐
๐ฎ๐ฌ๐ญ๐ฑโ๐ฎ๐ฌ๐ญ๐ต: ๐ง๐ต๐ฒ ๐๐ฃ๐ก๐จ+๐๐๐ ๐ฉ๐๐ง ๐๐
๐ฝ๐ฎ๐ป๐๐ถ๐ผ๐ป
The APNU+AFC government expanded VAT coverage to more than 200 previously exempt goods and services. Average monthly household income was about GYD 59,618, while VAT and fees averaged GYD 17,933 per monthโrepresenting roughly 30.1% of income. This left households with an average disposable income of GYD 41,632 per month, limiting growth in consumption and investment at the household level. At roughly GYD 60,000 per month in 2015โ2019, a typical family saw around GYD 18,000 go to VAT and other feesโbefore rent, utilities, or groceries.
2021โ2025: The PPP/C Reversal and Income Surge
Under the PPP/C, VAT on many goods and services was rolled back, lowering the relative tax burden sharply. Average monthly household income surged to GYD 271,425, with VAT and fees averaging just GYD 21,183 per monthโonly 9.34% of income. This allowed disposable income to soar to GYD 250,591 per month, enabling households to spend, save, and invest at levels not seen in the previous era.
๐๐ถ๐ด๐๐ฟ๐ฒ ๐ญ. ๐๐ฟ๐ผ๐๐ถ๐ป๐ด ๐ถ๐ป๐ฐ๐ผ๐บ๐ฒ๐, ๐๐ต๐ฟ๐ถ๐ป๐ธ๐ถ๐ป๐ด ๐๐ฎ๐
๐ฏ๐ถ๐๐ฒ โ ๐๐ผ๐๐๐ฒ๐ต๐ผ๐น๐ฑ ๐๐ป๐ฐ๐ผ๐บ๐ฒ, ๐ฉ๐๐ง ๐ฎ๐ป๐ฑ ๐ข๐๐ต๐ฒ๐ฟ ๐๐ฒ๐ฒ๐, ๐ฎ๐ป๐ฑ ๐๐ถ๐๐ฝ๐ผ๐๐ฎ๐ฏ๐น๐ฒ ๐๐ป๐ฐ๐ผ๐บ๐ฒ ๐ฏ๐ ๐๐ฟ๐ฎ (๐ฝ๐ฒ๐ฟ ๐ต๐ผ๐๐๐ฒ๐ต๐ผ๐น๐ฑ, ๐บ๐ผ๐ป๐๐ต๐น๐, ๐ฒ๐พ๐๐ฎ๐น ๐ฑ-๐๐ฒ๐ฎ๐ฟ ๐๐ฒ๐ฟ๐บ๐). VAT and other fees fell as a share of household income under PPP/C, leaving families with far more to spend and invest.
๐ช๐๐๐๐๐๐๐๐๐
Tax policy is not just about percentagesโitโs about what families keep. The APNU+AFC years show that expanding the tax base without matching income growth erodes disposable income. The PPP/C years demonstrate that a lighter tax bite, paired with strong income growth from wages, welfare, and subsidies, can deliver robust tax revenues and far higher takeโhome pay. For households, that difference is tangible: more money left after taxesโmonth after month. One government took a bigger slice of a smaller pie; the other grew the pie and took a smaller slice.
๐ ๐ฒ๐๐ต๐ผ๐ฑ๐ผ๐น๐ผ๐ด๐ & ๐๐ฎ๐๐ฎ ๐ฆ๐ผ๐๐ฟ๐ฐ๐ฒ
This analysis uses total national household income (in GYD millions) and the number of households (in thousands) to derive per-household income. VAT and fees per household are taken from national budget estimates. Relative tax burden is calculated as VAT + fees divided by total household income. All figures are converted to per-household monthly values for comparability. Era averages are based on full terms only: 2015โ2019 (APNU+AFC) and 2021โ2025 (PPP/C). Transition years are excluded to ensure a fair comparison between complete administrations. Data for 2015โ2024 are actual figures based on budget estimates, while 2025 figures are projections based on the Budget 2025 estimates. The wages component of household income only captures wages within the income tax bracket; it does not include wages under the income tax threshold or informal income. Sources: Budget Estimates 2015โ2024; Budget 2025 (projected).
๐ก๐ผ๐๐ฒ๐
Calculation notes: Burden % = (VAT and other fees per household รท annual income per household). Example (PPP/C average): 21,183 ร 12 รท 271,425 ร 12 โ 9.34%.
