Guyana’s President, Dr. Irfaan Ali, has announced increasing the country’s income tax threshold to $200,000 before the end of its current term in office.
Ali, who was re-elected to office in September of 2025, said his administration intends to raise the tax-free threshold from its current level of $140,000 to $200,000 before the conclusion of his five-year term.
The income tax threshold has increased steadily since 2020, moving from $65,000 to $75,000 in 2022, $85,000 in 2023, $100,000 in 2024, $130,000 in 2025, and $140,000 in the 2026 national budget.
According to government figures, the most recent increase removed approximately 5,000 workers from the income tax net and placed more than $2 billion in additional disposable income into the economy.
For workers, a higher tax-free threshold means more take-home pay and increased spending power. For businesses, it could translate into greater consumer spending, particularly in sectors such as retail, services, hospitality, transportation, and consumer goods
Increased disposable income often creates opportunities for businesses to expand their customer base and respond to growing demand. The President said the government’s objective extends beyond raising the tax-free threshold and is intended to support improvements in economic opportunity and living standards over time.
