The Guyana Revenue Authority (GRA) is undertaking a review of the excise tax on alcoholic beverages, which could soon be determined based on the alcoholic strength.
In a press statement issued on Monday, the GRA said its proposal for the review, which was approved by the Ministry of Finance, includes changes in the application of the ad valorem tax (a tax based on a fixed percentage of the product value) to specific tax (a tax calculated based on the alcoholic strength.)
The appraisal of the excise tax on alcoholic beverages, the GRA said, is being conducted “with the aim of streamlining the regime in accordance with regional and international best practices.”
It noted that assessments that several other Caricom states are collecting excise taxes based on the specific tax and it believes Guyana should adopt the same regime.
The GRA has made plans to meet with the local manufacturers and importers (particularly those of whom will be subject to the tax) to discuss the impeding changes and implications of the reform process. Meanwhile, the GRA also announced plans to introduce “high-security” excise stamps as part of efforts “to curtail smuggling and establish greater control of the flow of imported tobacco, spirits and beer imports.”
With the advent of the stamps, the job of inspection by the enforcement and customs officers will be made easier in relation to concerns about public health and counterfeit products, it said. Further, the GRA noted that it is partnering with a foreign company to facilitate the timely and successful introduction of the stamps and the accompanying legislation, software and the required support initiatives.
Excise tax, according to the GRA, is an indirect tax levied on alcoholic beverages, motor vehicles, tobacco products and petroleum products produced or sold (domestic and foreign) within Guyana.