GRA says ready to work with Govt. in new direction

Aug 14, 2015 News

Days after Finance Minister, Winston Jordan, vowed widespread reforms at the Guyana Revenue Authority (GRA), the entity has congratulated him, on his inaugural national budget presentation.
GRA yesterday said it looks forward with optimism to the realisation of the Government’s vision for a new and improved tax agency that promises quality service delivery and efficient revenue collection.
On Monday, Minister Jordan disclosed that the tax system of the country is broken and needs fixing. As a matter of fact, tax exemptions and concessions granted last year amounted to an astounding $55B (US$275M), about a quarter of the national budget.
Jordan made it clear that the situation was totally unacceptable with evidence that the GRA was politically compromised under the previous administration of the People’s Progressive Party/Civic (PPP/C).
GRA yesterday said that it noted that the Minister was cognizant that the entity contributed the bulk of revenues intended for the Consolidated Fund. The minister recognized also, that as a result of declining external inflows to Guyana, due in part to debt relief given under the Highly Indebted Poor Countries (HIPC) Initiative, and the Multilateral Debt Relief Initiative (MDRI), the GRA has assumed added importance over the last decade in generating resources to meet Government expenditure programmes.
This role will expand, in the medium term, as the Government accelerates its programmes and projects to enable Guyanese to experience the good life.
GRA, however, was critical that certain sections of the media took the Minister’s remarks out of context with speculation about retention of the Authority’s top brass, perhaps seeking to besmirch the image of the GRA.
“The authority noted that the Minister elaborated on the need to strengthen and enhance the organisational and managerial capacity of the GRA with a focus on reviewing its current operational standards, so that they are in line with international best practices; a move that is welcomed by the management of the GRA.”
The authority pointed out that each year, it is entrusted with the task of collecting a large portion of the revenue and save for a few shortfalls, it has been adequately prepared to meet the targets set out.
“The record achievements in revenue collection by the GRA over successive years stand testimony.
In anticipation this year, officers of GRA’s Planning and Analysis Department and the Ministry of Finance, were educated on revenue forecasting by the Caribbean Regional Technical Assistance Centre, CARTAC.”
Last year, tax revenue collections amounted to $135.9B, representing 93.9 percent of total revenue. Internal revenue increased by $5.1 billion or 9.8 percent. This, Minister Jordan said, was primarily attributed to increase collections from private sector companies and a $2.7 billion increase in personal income tax from the Pay As you Earn (PAYE) category.
On the other hand, there was a decrease of $581.6 million from withholding tax collections associated with the contraction in the gold mining sector. Customs and trade tax collections totalled $13.5 billion, an improvement of 2.1 percent. Value Added Tax collections rose by 9 percent, to $37.5 billion, largely on account of better administration that resulted in arrears of $2.7 billion being recouped. Excise tax collections increased by 3.5 percent to $28.2 billion.
Since taking up office in May, the Finance Minister has already made an inspection visit to GRA’s headquarters on Camp Street.

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