Opposition challenges VAT travel restrictions in High Court

Feb 16, 2017 News

Opposition Member of Parliament, Anil Nandlall, has brought a legal challenge against the government and the Attorney General, (AG) over the travel restriction requirement contained in the Value Added Tax, (VAT) Amendment Act 2017.

PPP/ C Parliamentarian, Anil Nandlall

The ACT, which was passed earlier this year, received widespread criticism from the PPP/C Opposition. The PPP/C discredited the Amendments to the Bill stating that the Bill has the makings of an instrument that will do nothing more than undermine the constitutional right of citizens to travel outside of Guyana if their taxes are not up to date.
The PPP stressed that the Bill will give the Guyana Revenue Authority (GRA) the power to prohibit persons from leaving without having to present a court order, to give prior warning, or even a hearing.
It is a power the opposition party fears, will be abused and leave citizens open to the whims and fancies of the Commissioner General of GRA.
Section 45 of the VAT Act.
”Where the Commissioner has reasonable grounds to believe that a person may leave Guyana without paying all tax due under this Act, the Commissioner may issue a certificate to the Chief Immigration Officer containing particulars of the tax due and request that the Chief Immigration Officer take the necessary steps to prevent the person from leaving Guyana until the person makes – (a) payment in full; or (b) an arrangement satisfactory to the Commissioner for the payment of the tax ‘Provided that the Commissioner cannot proceed under this subsection unless he has obtained an Order of the Court in respect of the tax due.”
Nandlall a member of the party and a Former Attorney General, (AG) was specifically vocal on the issue. Yesterday, Nandlall, through his attorney, Mursaline Bacchus, moved to the High Court to challenge the motion. He listed the current Attorney General, Basil Williams as a respondent in the matter.
According to the action filed, Nandlall is seeking a declaration that Section 45(1) of the Value Added Tax Act Chapter 81:05, as amended by Section 2 of Act No. 3 of 2017, Value Added Tax (Amendment) Act 2017, which was duly assented to by President David Granger on January 16, 2017 is or is likely to be, contrary to, inconsistent with, and in violation of Articles 40 and 148 of the Constitution of Guyana, unconstitutional, unlawful, null, void and of no effect.
He is also seeking an order striking down Section 45(1) of the Value Added Tax Act, Chapter 81:05 as amended by Section 2 of Act No. 3 of 2017, Value Tax (Amendment) Act 2017, pursuant to and in accordance with Article 8 of the Constitution of the Co-operative Republic of Guyana, on the ground that the same is or is likely to be, contrary to, inconsistent with, and in violation of Articles 40 and 148 of the Constitution of the Co-operative Republic of Guyana, is unconstitutional, unlawful, null, void and of no effect.
The former AG is seeking orders, writs and directions as the Court may consider appropriate for the purpose of enforcing or securing the enforcement of any of the provisions of Article 138 to 151 of the Constitution costs.
The grounds of the application are that Article 8 of the Constitution declares that the said Constitution is the supreme law of Guyana and, if any other law is inconsistent with it, that other law shall, to the extent of the inconsistency, be void.
Articles 40 and 148 of the said Constitution guarantee to every individual subject, as a fundamental right and freedom, protection of freedom of movement, that is to say, the right to move freely throughout Guyana, the right to reside in any part of Guyana, the right to enter Guyana, the right to leave Guyana and immunity from expulsion from Guyana, inter alia.
The document further noted the provisions in the Act being exercisable at any time, without affording the person a fair or any hearing, or without serving the person a notice of demand for taxes allegedly due, or without allowing the exhaustion of any lawful recourse available to the person to challenge the taxes alleged owed.

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