Several tax reform measures are being undertaken at the Guyana Revenue Authority (GRA) as it shifts from a tax type approach to a functional approach of administering.
The aim is to increase its capacity to obtain higher level efficiency and effectiveness and Commissioner-General of the GRA Khurshid Sattaur said that such a shift lends to the creation of a more service-oriented, customer-driven organisation that promotes voluntary compliance across tax types at all points of customer contact.
According to a press release from the GRA, another aim of the reform measure, which includes the reformation of the GRA Head-quarters and the implementation of a domestic tax administration through the re-engineering of its business processes across functional lines, is to create an understanding in all of its role in helping to make Guyana a country less dependent on foreign funds and in changing its status from ‘poor indebted country’, since the changes are likely to bring about greater levels of revenue collection.
According to the release, Sattaur said taxpayers should not take the narrow view of simply seeing themselves paying monies to the government, rather, they should envision themselves as part of a greater mission to create a viable and debt-free economy.
He noted that while the GRA has an important role in the reduction of Guyana’s fiscal debt, each citizen has a part to play in ensuring Guyana achieves economic freedom. “It therefore means that each person, business or individual must pay their fair share of taxes willingly,” Sattaur was quoted as saying.
He said that if persons paid their fair and right amount of taxes, less will be spent chasing after revenue adding that this year the GRA will seek to provide more efficient and quality service to the public and will be working closely with businesses and individuals to promote voluntary compliance.
Other tax reform measures to be undertaken include strengthening Customs and Trade Administration and significant emphasis will be placed on training GRA staff, the release said.
It noted that to date, the organisation has achieved much success in its effort to restructure and integrate with several units having been merged and in some instances, new units created. The functional areas that have resulted from the restructuring include Debt Management, Communication and Tax Advisory Services, Tax Operations and Services, Intelligence/Risk Man-agement, Law Enforcement/Investigations and tax Analysis Unit.
With the full implementation of the Total Revenue Integrate Processing System (TRIPS) most of the business processes are to be aligned with the way TRIPS operate, the release said. It noted that the various reforms being undertaken at the GRA form one component of the Millennium Challenge Account Guyana Threshold Country Plan/Implementation Project, which has as one if its overall objectives the reduction of Guyana’s fiscal debt through improved revenue performance.
Meantime, another press release from the tax body said that the Value-Added-Tax (VAT) Depart-ment and the Internal Revenue Department have been merged to form the Tax Operations and Services Department.
As a result the GRA now has two main business departments namely, Customs and Trade Administration and The Tax Operations and Service Department with operations at the VAT building, Guyana Post Office Corporation and Licence Revenue Office.
Acting Head of the Tax Operations and Service Department Hema Khan said that as part of the restructuring at the GRA, names of designations have been changed with the exception of the Commis-sioner-General, the Deputy Com-missioner-General (which are statutory positions) and some lower levels of staff such as clerks and tax specialists. The former position of Commissioner has been changed to Head, Deputy Commissioner to Deputy Head, Assistant Commis-sioner to Senior Manager and Director to Manager.
Khan was quoted as stating that as a result of the merger, a Central Data Processing and Registration Section has been established; hence all tax registration will now be carried out at the VAT building at Albert and Charlotte streets. Persons desirous of obtaining a Taxpayer’s Identification Number will now be required to register at the VAT building.
According to the release, Khan noted that the current changes will help to improve revenue performance and assist the GRA in being cost effective in management and controls and provide efficient and convenient service to the public.