Consumers are still paying Value Added Tax (VAT) at the rate of 16 percent as opposed to the reduced rate of 14 percent when purchasing Geo-park cards for parking in the city.
Last Tuesday, officials from the Guyana Revenue Authority (GRA) met with representatives of Smart City Solutions (SCS) to address the company’s application of VAT to the metered parking service being implemented within the city.
This meeting followed consumers’ claims that VAT was being charged twice- once when the card is purchased and again at the parking meter.
However, Kit Nascimento, spokesman for SCS, explained that VAT is only being charged once: when the card is purchased. Further, SCS has asked consumers to pay attention to the balance left on the parking meters for additional confirmation that VAT was not being charged there.
GRA, in a statement, confirmed that VAT is only charged by SCS upon the purchase of the prepaid parking cards. At that time, GRA explained that though VAT was being applied at a rate of 16
The first, shows the use of the card for the payment of two hours at a cost of $464, leaving a balance of $116. The second receipt, shows the balance being used to further purchase of 30 minutes.
percent, a 2 percent reduction was expected to be implemented from February 1.
Yet, when Stabroek News purchased Geo-cards yesterday, it was noted that the card was being sold at a cost that reflected 16 percent VAT as opposed to 14 percent.
Having purchased five Geo-park cards, valued $580 each, two reporters attached to this publication proceeded to use the cards at four different parking meters along Camp, Robb and Wellington streets.
At each of the four meters, it was obvious that the meters themselves had not yet been updated to facilitate the reduction from the previous tax rate of 16 percent.
Each parking transaction conducted by our reporters saw a $580 Geo-park card facilitating two and a half hours of paid parking at rate of $50 plus 16 percent VAT for each 15 minutes.
It must be noted that a balance of zero was recorded when the card was used to pay for the two and half hours; the same result was reflected three other times with three other cards on different meters along Camp, Robb and Wellington streets. Using the card for a transactions for two hours of parking at a cost of $464, left a balance of $116, which was able to facilitate a further purchase of 30 minutes.
