Latest update April 23rd, 2024 12:59 AM
Feb 12, 2020 News
– GRA reminds
ExxonMobil and its affiliated contractors and sub-contractors have been granted almost everything duty and tax-free.
In fact, only foodstuff, alcoholic beverages and fuel will be subjected to taxes, regardless whether the supplier is local or overseas.
The clarification was made by the Guyana Revenue Authority (GRA) this week in response to what it says are certain statements and articles in the press related to local and overseas suppliers to Exxon.
The authority pointed out that according to Article 21.1 of the Purchase Agreement between the Government of Guyana and Esso Exploration and Production Guyana Limited- Esso and its sub-contractors engaged in petroleum operations shall be permitted to import, free of duty, Value Added Tax (VAT) or all or any other duties, taxes, levies or imports.
This will hold for all equipment and supplies required for Petroleum Operations including but not limited to drill ships, platforms, vessels, geophysical tools, communications equipment, explosives, radioactive sources, vehicles, oilfield supplies, lubricants, consumable items, other than foodstuffs or alcoholic beverages or fuel.
GRA explained that suppliers of items to Exxon as listed on which taxes were levied and paid upon import, are advised that a credit shall be given for the said taxes, once proven to the satisfaction of the Commissioner General that such items were indeed sold to Exxon, and taxes were paid upon import.
“Note should be taken that foodstuffs, alcoholic beverages and fuel are subject to the appropriate tax, and will be so taxed regardless of whether the supplier is local or otherwise,” GRA said.
Locals have been demanding that they be offered incentives too for their activities in the oil and gas sector.
Production in offshore Guyana commenced last December in one has been described as one of the biggest finds in the world.
LISTEN HOW JAGDEO WILL MAKE ALL GUYANESE RICH!!!
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