Dear Editor,
Reference is made to the response by the Guyana Revenue Authority (GRA) published in the May 17, 2009 edition of Sunday Stabroek entitled ‘Not all land for a primary residence attracts VAT’ in which the GRA sought to clarify the application of VAT to land for use as a primary residence. The letter fails to answer the question why VAT is payable on land which will be used as a primary residence with regard to the circumstances I provided.
My question was one of VAT policy, whereas the GRA’s response dealt with application of the existing policy without addressing the ‘why.’ Why does who sells the land matter? Why should the sale of leasehold land and freehold land be treated differently? Why should land sold by an individual and by a business be treated differently? Why was the policy not set strictly based on the purpose of use?
I’m not sure why rental of housing was brought into the picture. In fact, the policy statement with regard to rental of a building to operate a business is not in keeping with the law.
Here’s hoping for an informed response, or better yet, an immediate change in the policy/law.
Yours faithfully,
(Name and address provided)
