GWI has major VAT issues

May 06, 2017 News

The Guyana Water Incorporated (GWI) is currently unable to fully enforce the 14 percent Value Added Tax (VAT) on all consumers whose bills have gone past the $1500 mark per month.

GWI Boss, Dr Richard Van West-Charles

Kaieteur News confirmed this yesterday with GWI boss, Dr. Richard Van West Charles.
Dr. Van West-Charles was informed that some consumers have seen the VAT being applied to their bill while it has not in the case of other customers whose bill exceed the $1500 mark and so attracts VAT.
The GWI boss noted that this has occurred for a few reasons. He cited the fact that GWI’s system was down for a period.
Be that as it may, Dr. Van West-Charles said, “It is going to be applied to the next Bill. The measure (of the 14 percent VAT on water consumption) is one which came into effect in February and then we had the hacking so we couldn’t do it automatically, so it is being adjusted now.”
Asked if GWI even has the technical capacity to apply the VAT to all consumers, Charles said that implementation has started in a number of areas. He made it clear that given certain circumstances, GWI is left to apply the VAT manually.
Dr. Van West-Charles also stated that the company’s computer system has to be adjusted to accommodate a new data arrangement. He said that this would have to be done by a UK company.
The GWI boss could not say what would be the cost to upgrade the computer system in this manner.
Charles said, “We can’t violate the law. The law requires us to do it so we have to do it manually or otherwise.”
It was November last that the Minister of Finance, Winston Jordan, announced that 14 percent VAT would be applied to water consumption.

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