The Guyana Revenue Autho-rity (GRA) yesterday slammed some television station hosts and owners, who it said, are peddling misinformation about Value Added Tax (VAT).
“We view this action which borders on violation of the law as being palpably irresponsible and undermines the efforts of noble businesses, policymakers, the GRA and ordinary citizens who have resolved to contribute to the modernisation of Guyana’s tax regime,” the GRA said in a press release issued yesterday.
The GRA is contemplating action against businesses and individuals who are engaging in these practices. “We acknowledge that the implementation of this tax has been met with some bottlenecks which are expected with any tax reform of this nature,” the GRA said.
The agency said too that it is considering the novel measure of offering incentives to citizens who provide evidence that will provide an audit trail leading to unearthing of VAT violations. “This we believe will not only benefit the VAT system but also administration of all the other taxes. This ultimately will benefit all Guyanese as taxes will be reported much more truthfully,” the GRA said.
According to the press release, while the GRA is pleased that the country has commenced the implementation of VAT, “we are not oblivious to these hiccups. In the same way we are heartened by the decision of a growing number of businesses to adjust Consumption Tax out of their pre-VAT prices before applying the VAT rate in order to either maintain or reduce final prices.
“We continue to note concerns, however, related to display of certificates, invoicing requirement, mounting of adequate signs to indicate whether their prices are VAT inclusive or exclusive and inordinate increase of prices,” the release stated.
“The GRA reminds businesses that the VAT law stipulates penalties for violation of requirements relating to these incidents and we will not spare any effort to enforce the law.”
In continuing efforts to fairly and efficiently administer the tax the GRA reminded businesses that it is supplementing its conventional audit procedures with additional investigative methods to ensure the businesses remit all the VAT due and unearth any violations of the VAT law.
“We continue to implore businesses to play their role in contributing to a seamless transition to the VAT regime. You are reminded that a key factor which will aid in this transition is a steady rate of consumption of commodities in the country. If consumers shop less as a result of higher prices, businesses stand to suffer revenue losses,” GRA said.
It added that in the coming weeks the GRA will continue to interact with businesses to implement this tax in a way that will result in full compliance of the law and realisation of tremendous benefits of the system.
