In announcing conditions for the implementation of the presidential directive for the reduction of freight charges to pre-pandemic levels, the Guyana Revenue Authority (GRA) yesterday warned that any attempt to use the concession to evade taxes would attract penalties.
The Office of the President (OP) on Monday announced that in order to lower taxes on imports, and to pass savings on to consumers and businesses, the Customs Act, and the Value Added Tax Act will be amended to reflect the concession, which is effective on all invoices dated August 1 and continues in effect until January 31, 2022.
In a statement, the GRA yesterday advised that the reliefs would be applied to imports of goods subject to several conditions, and other approved by Commissioner-General Godfrey Statia.
Among them is that the relief takes effect for a period of six (6) months from August 1, 2021 to January 31, 2022 (not August 1, 2020 as inadvertently stated in OP’s initial announcement). It added that the invoice must be on or after August 1, 2021, and be within the period specified.
The GRA stipulated that the measure is for “FREIGHT purposes used ONLY” in the calculation of duties/taxes, and is granted only for the reduction of freight to the pre-pandemic level of March 31, 2020, and will only apply if the actual freight charges paid is higher than the pre-pandemic rate. The GRA provided a listing of average rates and noted thatcCountries/ regions not specifically mentioned will be reviewed on a country basis when the declaration is submitted and/or when audit checks are conducted.
It added that the invoices must be at a ‘Free-on-Board’ (FOB) level, or the FOB position must be clearly stated on the invoice for valuation checks.
The GRA noted that the measure is intended to provide relief so that the benefits can be passed on to the consumers. As a result, it said FOB values declared on invoices will be reviewed, cross-referenced, and applied by the Customs, Excise, & Trade Operations (CE&TO) based on the rules of the World Trade Organization (WTO) and the Fifth Schedule to the Customs Act for consistency.
“Should unscrupulous importers seek to manipulate the system for tax evasion, they will be penalized in accordance with existing legislation,” it added, while noting that in keeping with law the Central Revenue Protection Unit (CRPU), Post Clearance Audit Unit (PCAU), and Law Enforcement & Investigations Division (LEID) will verify the accuracy and authenticity of declared particulars and taxes paid.
“Those found non-compliant may be subject additional taxes/fines/penalties and six months imprisonment, and the possible removal of the relief being granted under the measure,” it further said.
In announcing the measure, OP had said that in monitoring the socio-economic effects of the pandemic on household income, the government recognised the marked increase in shipping costs from some countries, rising from an average of 2,500 to as much as 15,000 US dollars per 20 foot container, and from 3,500 to over 20,000 USD for a 40 foot container. “This measure will allow for a saving of $4.8 billion to the consumer and business community over the six month period, thereby reducing revenue collections by the similar amount of $4.8 billion,” it explained.
Should further clarification be needed, the GRA said persons in need can contact the CE&TO on telephone no 227-6060.
