Latest update April 19th, 2024 12:59 AM
Nov 25, 2012 News
By Staff Writer
Over the years, Government has been battling to collect taxes from both citizens and businesses alike.
Non-compliance from especially the self-employed remained a major problem with not only the large unmanned, hinterland terrain a challenge for tax inspectors but also for enforcement and prosecution also.
Minibuses and taxi operators, miners, logging camp workers, Canter trucks, horse cart operators, lawyers and doctors and the punters on America Streets were but some of the biggest culprits.
It is no secret also that along the way, the Guyana Revenue Authority (GRA) had introduced new measures to reduce the incidence of corruption.
The stories of Customs officers making it big, buying fancy cars and bikes, and owning posh homes by taking something under the table and undervaluing a container of goods, were many.
But like the National Insurance Scheme (NIS), it may be a case of just not enough personnel for GRA to ensure compliance.
It is also not unknown that many businesses keep two books to fool the taxman.
And so it is against this background, that this newspaper received a number of growing complaints that stores in the city were not issuing receipts for goods sold.
This was especially so in central Georgetown, in the Regent Street and Robb Street area, the newspaper was told. There are tales of stores selling electrical appliances and if the customer asked, would even offer not to charge the Value-Added Tax (VAT)…once the customer agrees not to collect a receipt.
Not collecting a receipt would mean that the tax inspectors would find it more difficult to track the volume of sales from a particular business and as such make it a challenge to calculate the correct tax.
Within recent years, the face of the city has been transformed by not only the hulking buildings but also by the businesses that sprang up.
Where Indian stores once thrived, the Chinese and Brazilians are slowly taking over. The hefty rent being charged…in the thousands of US dollars monthly…made it inevitable that the owners would take a back seat.
Between Regent Street and Robb Street alone, there are over 20 Chinese stores each competing with clothes and hardware. They jostle for space with the Brazilian restaurants and guest houses on Regent, Robb and even on Church and Hadfield Streets.
According to officials from the private sector, the situation is becoming untenable with many of the businesses, especially the foreign-owned ones, doing everything in the books or out of it, to rob the country of its taxes.
One businessman said that he is fully aware of goods being smuggled through Suriname and ending up at the Chinese stores.
“You have to understand that it is difficult for Government to address since the Chinese Government is making a lot of loans available to Guyana for the Amaila Falls project and the Timehri project.”
The Chinese Government has indeed been on a splurge across the globe, investing heavily in infrastructure in developing countries, in most cases in return for using Chinese labour. The monies have been at concessional and attractive rates.
Yesterday, Kaieteur News went undercover, shopping at several Chinese stores located on Regent and Robb Streets.
Of the 11 stores visited, seven of them did not issue receipts. Items shopped included underwear, a memory card reader, a screw driver, eyeliner and lip gloss and even a key ring.
One reporter queried whether it is possible for a small generator to be purchased without paying VAT. This was possible, a sales girl said. She was willing to accommodate the transaction.
Down at the popular China Trading on Robb Street, receipts were being issued. But not so at Jui Yue Trading, Fuda and A/Z located along the same stretch.
Across at Regent Street, the items purchased are taken straight to the cashier cage…in all cases manned by a Chinese…where the cash is taken and change given and the items bagged off…but no receipts given.
Zhong Da Hardware, Wing Loong Trading and Baleno’s on Regent Street were the ones that also did not issue receipts.
In all the cases, Kaieteur News was videoing the purchases and even has the sales girl on tape talking about the possibility of no VAT being paid for a generator.
Consumers are more than happy for the cheap Chinese goods, never mind that they do not last so long as the others. There are knockoffs for almost everything, from perfumes, to hammers, to electrical tools and name-brand clothes and even building materials.
Christmas lights that sell for $2,500 at the normal stores are going for $1,500 at the Chinese ones…Small wonder that consumers have no difficulty in choosing where to go shopping.
Please share this to every Guyanese including your house cats.
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