Latest update April 19th, 2024 12:59 AM
Mar 26, 2021 News
Kaieteur News – Businesses operating in Guyana that continue to impose a 14 percent Value Added Tax (VAT) on commodities and services that were zero-rated will be prosecuted and the Guyana Revenue Authority (GRA) has since been instructed to go after delinquent businesses.
This, according to the Ministry of Finance, which in a public missive on Wednesday, quoted Senior Minister with responsibility for Finance within the Office of the President, Dr. Ashni Singh saying, “it has come to my attention through various reports from members of the public that a number of hardware stores have since refused to comply and are still unscrupulously charging VAT on several items.”
According to Dr. Singh, businesses that continue to flout the laws and unscrupulously attach a 14 percent VAT to items on which the VAT has been removed or has been reduced, will face the full force of the law as this is illegal.
Dr. Singh lamented that the “practice is denying consumers the right to ultimately enjoy reduced prices on various commodities including construction materials.”
The Minister in his statement recalled that when the 2021 Budget was passed in the National Assembly on March 4, last, it would have outlined a number of measures including the VAT zero-rating, or reduction of VAT or duty, previously charged on a number of commodities.
It was noted too that Order Number 6 of 2021 of the Value Added Tax Act Cap.81:05 of the Laws of Guyana came into effect immediately for VAT zero-rating of certain construction materials.
These include stone imported for construction and housing from Caribbean Community (CARICOM) countries, locally produced pre-stressed concrete piles and locally fabricated mild steel beams for building construction and locally manufactured roofing and PVC products for building construction.
The import duty on industrial grade cement was also reduced from 15 percent to five percent.
Additionally, the VAT zero rate was also restored to basic food items and household necessities that were previously zero-rated up to May 2015 but switched to ‘standard-rate’ or ‘exempt’ over the past five years.
These include basic wheaten flour, breads, oats, unflavoured cracker biscuits, cooking oil, locally produced bed sheets and pillowcases and toothbrushes among other items.
According to Dr Singh, prior to this, the emergency Budget was passed in Parliament on September 25, 2020, also stipulated the VAT zero rate or removal of VAT on other commodities including the overall removal of VAT on electricity and water. Therefore, since then, VAT would have also been removed from hinterland travel and data, as well as building and construction materials.
According to the Ministry’s missive, the Senior Finance Minister recalled that all of these measures were intended to benefit consumers and ease the expense aligned to these previously burdensome tax measures and with their removal or reduction, “the expectancy was that it would have ultimately allowed for the reduction in the cost of living of Guyanese generally.”
As such, “this illegality will not be tolerated” Dr. Singh said, and announced that he has already instructed the relevant agency—the Guyana Revenue Authority (GRA)—to ensure that countrywide checks are made to enforce compliance with the VAT regulations. According to Dr. Singh, businesses found flouting the laws and continuing to deprive consumers and customers of these benefits will be dealt with according to law.
Please share this to every Guyanese including your house cats.
Apr 19, 2024
SportsMax – West Indies Women’s captain Hayley Matthews delivered a stellar all-round performance to lead her team to a commanding 113-run victory over Pakistan Women in the first One Day...Kaieteur News – For years, the disciples of Bharrat Jagdeo have woven a narrative of economic success during his tenure... more
By Sir Ronald Sanders Waterfalls Magazine – On April 10, the Permanent Council of the Organization of American States... more
Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]