The Guyana Revenue Authority (GRA) says around 1,207 applications by first-time homeowners under the 2013 Mortgage Interest Relief (MIR) Programme have been approved and it says it wasn’t responsible for the delay experienced by an applicant who complained in a letter to Stabroek News.
In a release on Wednesday, in response to a letter in Tuesday’s edition of Stabroek News by Ricky Roopchand, the GRA said that $165.9M has already been disbursed under the scheme, which was signed into effect by the Finance Minister Dr Ashni Singh in October of 2013, following its announcement in the budget of that year.
When the MIR regulations were announced and signed by Singh, it was stated that some $580M annually would be made available under the scheme. The figure paid out thus far is way below this.
Stabroek News reached out to the Finance Minister for a comment in relation to the success rate of the MIR and what mechanisms that were put in place to alleviate the length of time taxpayers had to wait for access to the refund, however there has been no response.
Roopchand, in his letter, noted that for nine months his banking institution had been unable to “sort things out.”
He had stated that the GRA and the Guyana Bank for Trade and Industry (GBTI) had both given him conflicting information.
“With regard to information I have received from both GRA and GBTI concerning my application, there seems to be some level of miscommunication between these two service providers. The right hand seems not to know what the left is doing. As a result I have been given information that is disjointed and incoherent by both organizations,” Roopchand lamented.
He added that his latest meetings with representatives from both GRA and GBTI, on Monday, March 16, yielded nothing substantial.
“My wife and I have put a lot of effort into this venture and I am afraid it will be for nothing. I have always ensured that I pay my monthly instalments on my mortgage and even ensure that the organization which I work for – Guyana Rice Producers Association – deposits my monthly pay cheque so the bank can make their deduction without delay. A representative at GBTI Regent Street branch has asked for another week to see if they can sort things out. They had 9 months. I doubt another week will make a difference,” Roopchand stated.
The GRA, in its statement on Wednesday, said that following Roopchand’s letter in Stabroek News, it subsequently called GBTI on his behalf and was told that administrative shortcomings resulted in the delay of payments. According the GRA, a cheque was prepared on February 16, 2015 and was uplifted by the bank the following week. It said it had told Roopchand when he visited the MIR unit on March 16 that the payment had been made to his banker.
The GRA did not say why the process would have taken nine months.
“For the benefits of taxpayers, especially those whose MIR application have been approved, the relief takes the form of a refund cheque paid by the GRA to the banks where the taxpayers have accessed the mortgage and is bound by the contact to repay with interest. In the event that cheques are ready but have not been uplifted the lending institution is notified,” the GRA stated in its release.
The GRA added that in the initial stage of implementation of the MIR, the banks had proven to be problematic. Subsequent meetings between the GRA and the bankers association were held to reach a solution. The GRA said it hoped that all stakeholders, including commercial banks, will take steps to fulfil their end of the bargain so that no other taxpayer who had been approved for MIR would have to faces challenges similar to Roopchand.
The GRA release said that 2,185 application had been made under the scheme, with 1,207 of those being approved. Currently 568 applications are in various stages of being completed, while 1,617 have been processed and are awaiting approval. Additionally, 177 applications still require outstanding information.
“The process of MIR application, including interviews with the applicants is ongoing and as the implementing body the GRA is determined to ensure that the objective of the MIR is met thereby ensuring that aspiring homeowners realise their dreams. The MIR is a 30% reduction on the interest paid on the residential mortgage not exceeding $30M,” the tax agency stated.
