GEORGETOWN: In its continued pursuit of meaningful dialogue with key stakeholders in the economy, the Guyana Revenue Authority (GRA) was pleased to have recently engaged the Private Sector Commission (PSC) and the Guyana Manufacturers and Services Association (GMSA).
The two meetings were held on July 29 and August 4 respectively, the most recent being with the GMSA, to address issues relevant to Value Added Tax (VAT), the GRA’s role in facilitating the processing of tax exemptions and clearance of imports and exports. In both the engagements, timeliness at the level of Internal Revenue and Customs were central to the concerns raised and at the end, proposals were made for corrective actions.
The GRA remains committed to efficiency while at the same time holding firm to the rules and regulations governing the country’s tax, trade and border laws. At the meeting with the PSC, the perpetuation of a tax compliant mining sector and the need for investment guidelines and project plans were seen as preconditions to the issuance of Tax Exemptions letters for investment Agreements, particularly with the Guyana Office for Investment (Go-Invest) and the mining sector.
Similarly manufacturers eligible for tax exemptions must apply in writing to the Commissioner-General and submit an up-to-date list of the raw or packaging material used in their manufacturing operations. They must also submit a schedule showing their products on a monthly basis and co-operate fully with the prerequisite verification exercises by the GRA to determine the eligibility of the items.
As it relates to the processing of customs declarations for imports and exports, the GRA gave the assurance that Customs Officers are being assigned specifically to expedite the processing of such documents and to report short shipments upon discovery. Only recently the GRA made amendments to its customs import policy requiring importers and licensed Customhouse Brokers to submit their Customs declarations (otherwise known as Form C 72) in triplicate. The amendment will cause no undue processing delays.
There were also suggestions to fast-track the examination and release of goods at the wharfs and transit sheds as the PSC continues to decry the impact of delays on business competitiveness, sale and profits. The GRA however remained firm on its position that monitoring and surveillance must be maintained to guard against smuggling of prohibited, restricted, under-invoicing and undeclared goods. As such GRA’s Law Enforcement and Investigation Division (LEID) will continue to re-examine goods based on its intelligence gathering and risk management assessments.
The discussion on VAT focused mainly on the timely release of refunds. It was agreed that reputable and tax compliant companies and businesses should not be subject to undue delays. However, there must be greater scrutiny of those who are recalcitrant.
