Smuggling clampdown…Imported cigarettes, liquor to be stamped

Jun 14, 2017 News

In a bid to reduce a billion-dollar smuggling trade in alcohol and cigarettes, authorities have managed to move closer to introducing a special stamp.

In another few months, GRA will start stamping imported liquor and cigarettes to prove that taxes have been paid.

The measure is expected to take effect from as early as August or September, Commissioner-General of the Guyana Revenue Authority (GRA), Godfrey Statia has disclosed.
In essence, GRA’s inspectors will be able to determine during checks whether any cigarettes and liquor are legal – meaning that the relevant taxes have been paid up. The stamp has to be affixed on the items.
According to Statia, the digital excise tax system is to strictly address cigarettes and alcohol smuggling.
Already, the necessary agreements with the contractor have been signed and the stamps will soon be available.
Statia said that the rollout will be happening in July and August, with engagement having started already with the stakeholders, including manufacturers and importers.
The legislation is already in place too, it was said.
The issue of the stamp was first announced last year, with Statia indicating that GRA has been paying close attention to smuggling, which siphons off billions of dollars annually in revenue.
With indications of a huge smuggling racket involving alcohol and cigarettes, it was being estimated that Guyana loses an estimated $2B annually in taxes, the Commissioner-General had disclosed.
It was also announced then that GRA was working with Canadian Bank Note, which specializes in security measures to implement a stamp system that would allow enforcement officials to make inspections and determine right away whether taxes have been paid. The stamps will be affixed to the products imported into the country at the time of clearance.
Excise Tax is an indirect tax levied on alcoholic beverages, motor vehicles, tobacco products and petroleum products produced or sold, domestic and foreign, within Guyana.