Georgetown: Guyana Revenue Authority (GRA) has already begun the process of Mortgage Interest Relief (MIR) roll out, as systems are being put in place to ensure the public is sensitised about the new law.
The introduction of the MIR is expected to cost government approximately $580 million annually, and will benefit tens of thousands of first-time homeowners.
Commissioner General Khurshid Sattaur has warned that his organisation will be closely monitoring the system. The concession will be made available to first-time homeowners who hold mortgage loans of up to $30 million.
He explained that it was the tax on the interest from the mortgages that would be foregone. The homeowners will be permitted to deduct the interest they pay on such mortgages from their taxable income for the purpose of personal income tax. The GRA would now be tasked with the mandate of compensating financial institutions that would have had to reduce that interest.
“A lot of checks and balances are put in the system to prevent further fraudulent claims as well. So those people who think they can smart the system, we are looking out for them,” he sternly stated.
He added that the system would also require inter-agency cooperation between the banks, the financial institutions, and the GRA. “Ultimately, the relief is granted through a reduction in the payment of your commitment to those institutions,” he explained.
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