ARRANGEMENT OF SECTIONS
1 Short title
3 Declaration of approved product
4 Declaration of approved enterprises
5 Applications for approval
6 Objections to proposals to approve a product or an enterprise
7 Limitations on power of Minister to approve a product or a company
8 Minister to have an absolute discretion to refuse approval
Income Tax Benefits
10 Alternative income tax benefits
11 First option
12 Second option
14 Order under section 4 may be revoked
Benefits in respect of customs duties and general consumption tax
15 Relief from customs duties and tax
16 Special provisions relating to articles imported free of customs duty and tax
17 Restriction upon disposition of articles imported free of customs duty and tax
18 Date when an approve enterprise ceases to be an approved enterprise for the purposes of Part III
19 Restriction on use of factory premises
22 Power of Commissioner of Income Tax to refuse to treat certain receipts and payments as received or made in a particular year of assessment
23 Commissioner of Income Tax empowered to issue certificates regarding benefits enjoyed under this Act
Modification of this Act in relation to items specified in the Third Schedule
25 Modification of this Act in relation to certain items
26 Amendment of Third Schedule
Incentives applicable to products declared on or after 28th May 1963
27 Interpretation of this Part
28 Application of this Part
29 Tax relief in relation to manufacture of new product
THE INDUSTRIAL INCENTIVES ACT
[Date of Commencement: 23rd August, 1956]
45 of 1956,
12 of 1960.
5 of 1965,
4 of 1967,
23 of 1972,
56 of 1974,
12 of 1985,
16 of 1991.
This Act may be cited as the Industrial Incentives Act.
General (sections 2-8)
In this Act, unless the context otherwise requires-
[56/1974 s 2.]
"the Agreement" means the Agreement done at Georgetown, Guyana, on the 1st day of June, 1973, and establishing a Scheme, to be known as the "Harmonisation of Fiscal Incentives to Industry Scheme", for implementation by such countries belonging to the Caribbean region as participate in the Scheme under that Agreement;
"annual allowances", "chargeable income", "initial allowances" and "year of assessment" shall have the same meanings as in the Income Tax Act, and where pursuant to this Act any annual allowance is made, such allowance shall be made subject to and in accordance with the provisions of that Act;
[4/1967 s 2.]
"approved enterprise" means a company approved by the Minister under section 4 for the manufacture of an approved product;
"approved product" means a product of manufacture approved by the Minister under section 3 for manufacture by an approved enterprise;
"benefit" means the relief in regard to income tax, customs duties or general consumption tax enjoyed by an approved enterprise in virtue of this Act;
[21/1991 s 64.]
"Commissioner" [Deleted by LN 165/1999.]
"company" means any company incorporated or registered under any law in force in the Island and any company which, though incorporated or registered outside the Island, carries on business or has an office or place of business therein;
"date of production" means the date declared pursuant to subsection (2) of section 4:
"factory" includes a place or an establishment at or in which an item specified in the Third Schedule is produced;
[5/1965 s 2.]
(a) the production by any method of an item specified in the Third Schedule;
(b) preparation for sale;
"Minister" means the Minister responsible for industrial development.
(1) Subject to the provisions of sections 6 and 7, the Minister may, by order' declare that a product of manufacture shall be an approved product for the purpose of this Act if he is satisfied that the manufacture of the product would-
(a) be of benefit to the Island, both economic and non-economic considerations being taken into account; and
(b) have a beneficial effect on employment both in numbers and in gross wages.
(2) An order may be made under subsection (1) in respect of a product which is being manufactured in the Island at the date of the order.
(3) The Minister, before declaring under subsection (1) that a product of manufacture shall be an approved product for the purpose of this Act, shall also have regard to the following considerations-
(a) the effect which approval would have on existing industries;
(b) whether manufacture of the product would utilize raw materials or skill available in the Island;
(c) whether the existing capacity for manufacture of the product is sufficient to meet the demand for the product;
(d) the element of risk involved in establishing a successful manufacture of the product.
(4) When approving a product for the purposes of this Act, the Minister may, by the same order, declare that all approved enterprises manufacturing the approved product shall be entitled either to one hundred per centum or to fifty per centum of the benefits of this Act, that is to say, in regard to relief from income tax relief in respect of the whole of the chargeable income of the company or of one-half of the chargeable income of the company (as the ease may be) which, but for the provisions of this Act, would be chargeable with income tax and, in regard to customs duty, or general consumption tax, either the whole or one-half of the duty or tax, as the case may be.
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