Says majority of bikes were for large scale miners

Oct 03, 2012 News

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GRA denies ATVs’ report…

 
The Guyana Revenue Authority (GRA) has refuted reports carried last Sunday in Kaieteur News which raised questions about duty free concessions being granted on hundreds of All Terrain Vehicles (ATVs).
The newspaper had quoted well placed officials who said that over 500 ATVs were processed for the year by GRA but several were granted under questionable circumstances and that an investigation has been launched.
ATVs are being imported by mainly miners at the moment and under regulations can be subjected to duty free concessions once it can be proven that it will be used for mining purposes.
The Guyana Geology and Mines Commission (GGMC), in this case, is the regulatory body that has to verify that the applicant is indeed a miner. Farmers are also allowed duty free concessions on the ATVs, Kaieteur News understands.
Describing the newspaper report as a fabrication, GRA yesterday said it “wishes to state emphatically that the Kaieteur News is extremely irresponsible in publishing an article that is totally inaccurate and devoid of any credibility to its claims that the GRA processed 425 illegal transactions.”
GRA’s Commissioner General, however, admitted that over 500 of the four wheel bikes may have been imported.
“The GRA further states that this information is misleading and wishes to clarify that, while 500 ATVs may have been imported, the overwhelming majority were fully exempt (not required to pay any duties and taxes) since they were imported for large scale mining operations under various Investment Development Agreements (IDAs).”

He explained that there are three categories of miners- large, medium and small scale. Persons carrying on any form of large scale mining -gold, diamond, bauxite etc.- under an IDA can import any number of ATVs for use in their operation, once they are stated in the agreement and approved by the Government of Guyana. There is no need to obtain recommendation from the GGMC, in this case.
“On the other hand, ATVs imported by medium and small scale miners are partially exempt and the miners are required to pay only thirty percent (30%) Excise Tax.  In these cases, the GRA rely on letters of recommendation which must be issued by the GGMC.”
According to Sattaur, these letters must pass through the Ministry of Natural Resources and the Environment for their stamp of approval. These letters are then used by the GRA to process the tax exemptions for eligible persons.
Recently, the Commissioner General disclosed that three staffers were sent on leave for demanding bribes from a businesswoman who imported ATVs for resale. The woman claimed that she paid hundreds of thousands of dollars to GRA officers for duty free letters that were later seized.
She had reportedly identified a staffer whom she paid. She was later issued demand notices to pay over $8M in fines and duties.
Earlier this year, GRA also said that it had launched an investigation into incidences where duty free letters appeared to have been forged. Two staffers have reportedly been fired for that, including a relative of a senior official.
The Ministry of Natural Resources has reportedly ordered an investigation into the issue of duty free letters being issued.
According to GRA yesterday, it wants evidence.
“The GRA challenges the misguided and grossly misinformed individual (s) to come forward with supportive facts and figures in the absence of which they should desist from making such nefarious claims.”
According to Sattaur, not only does the article attempt to sully the image of the GRA but it also impacts on the Private Sector Commission (PSC) which is affected by unnecessary delays and bottle necks which are created and sometimes affect the smooth flow of “GRA’s operations as the agency seeks to implement measures to ensure that such reports in the Kaieteur News remain unsubstantiated.”
GRA said it recently had a meeting with PSC’s Chairman, Ron Webster, Ramesh Dookoo and President of the Georgetown Chamber of Commerce and Industry Clinton Urling where Sattaur urged the two bodies to strongly condemn those members of the private sector who habitually induce GRA staff to engage in corrupt practices, since both agencies share equal blame when such incidents occur.
“PSC Chairman Ron Webster also echoed the call by the GRA for Kaieteur News to desist from publishing such negative articles that have been appearing with increasing regularity.  He further called for urgent steps to be taken to address the cause of delays that are currently being experienced in the clearance of goods due to the higher degree of scrutiny that has to be exercised over the processing of transactions,” the GRA statement said.
“The GRA also calls on the Kaieteur News to stop publishing patchwork articles that seek to twist press statements issued by the GRA in favour of corrupt individuals who help to serve their mischievous agenda. “
The Commissioner-General of the GRA, Mr. Khurshid Sattaur said the public should take a stand against all that flies in the face of ethics and professionalism.  He said that the Kaieteur News should not allow economic pressures to blur ethical lines.

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