More companies want Environmental Tax refund from GRA - Attorney General

More companies want Environmental Tax refund from GRA – Attorney General

Jan 27, 2017 News

According to Attorney General Basil Williams many companies have now signaled their intentions to approach the Guyana Revenue Authority (GRA) for environmental tax refunds.

Attorney General Basil Williams

Williams made this disclosure at a recent press conference at the Ministry of Legal Affairs. He said that these companies, who he did not name, claim to have mirrored facts in relation to those of Demerara Distillers Limited (DDL) and Rudisa Beverages.
Addressing the issue of the DDL refund that seem to have triggered a slew of other claims, Williams says he would not say if the settlement was proper or not since a number of considerations had to be taken into account.
The AG noted that the problem that they are now experiencing is what they have inherited from the previous administration. Williams said that had it not been for the environmental tax that was introduced by the previous administration this situation would not have existed. He explained that the tax was in breach of the Revised Treaty of Chaguaramas and the previous administration still went ahead with it.
When contacted, Opposition Leader and Former President Bharrat Jagdeo asserted that he has now been proven right when he said that the floodgates will open with the settlement made to DDL by the present government. Jagdeo said that when his government sought to amend the related Act, it was rejected by the opposition, who now is in government. He said that Williams is confusing the issue and should take responsible for the “sweetheart deal” his government made.
The opposition leader said that this new development is poised to bleed the public coffers of billions of dollars.
In the Rudisa Beverages case, the CCJ ruled that the Guyana Government breached the regulations of the Treaty of Chaguaramas. This led to a US$6M ruling in favour of the applicant.
After Rudisa won its case, the Guyana Manufacturing and Services Association (GMSA) criticized the then government for not fighting the case in a proper manner.
GMSA had said that Government should have taken into account the gross unfairness to Guyanese, who would be forced to pay twice, since they already paid Rudisa’s environmental tax with every purchase of a bottled beverage.