Modern, effective taxation systems by GRA to receive support

Sep 29, 2017 News

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– GMSA President

The Guyana Manufacturing and Services Association (GMSA) is in full support of the efforts of the Guyana Revenue Authority (GRA) in creating more modern and effective taxation systems.
This, among other statements, was made yesterday by GMSA President Shyam Nokta. He was at the time, addressing stakeholders at the GMSA Luncheon, which was held at the Georgetown Club on Camp Street.
There, Nokta noted that the GMSA Business Luncheon is a regular feature in its calendar. At this event, the GMSA invites leading personalities to share perspectives on topical issues related to the business environment.
At yesterday’s proceedings, the GRA Commissioner General, Mr. Godfrey Statia, was the featured guest speaker. He was asked to engage with those present on the work of the tax agency.
To set the stage for Statia’s presentation, Nokta briefly focused on three areas. He examined how central the GRA has been to Guyana’s economic development to date, and how important it is to the future of the country. The GMSA President then discussed the issue of tax policies and how the GMSA stands willing to play its part in supporting modern and effective taxation systems to help the country’s future development. Nokta also spoke of the implementation of such policies, and specifically on areas where GMSA members believe that there is scope for greater co-operation with the GRA.
The GMSA President said that over the past decade, GRA has transformed itself into a modern institution serving the people of Guyana. He said that this is a tribute to its leadership, past and present. He noted that it is also as a result of the professional staff at the Agency, and on behalf of the GMSA, he acknowledged their work.
Nokta said, “The GRA has played a significant role through reform and increased professionalism in Guyana’s journey from a Highly Indebted Poor Country (HIPC) in the 90’s to a Higher Middle Income Country in 2017. And no doubt, the Agency’s role will be even more critical as we look to future economic prospects…We cannot sustain what is now 11 years of uninterrupted economic growth without this dialogue.”

“And central to this is the need for open, frank exchanges when we believe there are issues to address. At the GMSA mid-year dinner, I spoke of our excitement about the potential from oil and gas – but also our concerns with an economy that is slowing and our urgent need to grasp new potential…We need to see practical measures so that the economic sectors, including the manufacturing and services sectors –can help drive a return to strong GDP growth.”
The GMSA Head also reminded that at the Association’s mid-year dinner, he spoke specifically to tax measures in the 2017 budget which are frustrating members’ goals to add value to the productive sectors of the economy. In this regard, Nokta noted that measures such as the re-categorization of zero and standard rated items to exempt; VAT on electricity; VAT on forestry products among others have affected the competitiveness of GMSA members and therefore the economy. He noted, too, that these were raised recently with Finance Minister Winston Jordan last week and GMSA officials proposed several measures for consideration.
“When Budget 2018 is announced, hopefully we can see evidence of what can happen through collaboration between the private sector and Government. We hope that we will see progress on priorities such as the review and hopefully removal of VAT on electricity, water, and education… incentives for investing in renewable energy options; locally manufactured products being given a larger share in public procurement; and adherence to the Small Business Laws which state that at least 20% of public spending should be towards local procurement from small businesses.”
Nokta noted that while the aforementioned topics are all primarily policy issues for the Government and not the GRA, he still called upon the Commissioner General, and the rest of the professionals in the GRA, to gain a greater understanding of these issues.
He said that they are central to GMSA’s shared objective of stimulating the broad-based economic growth which generates the revenues that the GRA can gather for investment in national development.
The GMSA Head also sought to discuss how the Association and GRA can work together to address issues which are inhibiting the ability of its members to perform effectively.
“When Commissioner General met with our members last year, several issues were raised such as difficulties with outstanding exemptions for manufacturing imports; VAT refunds; Trusted Traders Compliance; inspection of containers with perishables; processing of export documentation; damage of goods for export and the use of the GRA Scanner; among others.”
“To an outsider, these may not seem like major issues – but they serve as barriers to doing business. We wish to see these challenges addressed, and we believe that they can be, through meaningful, practical, problem-solving partnership between the GRA and private sector organizations such as the GMSA.”
In concluding, Nokta noted that GMSA will continue to support the GRA in carrying out its duties.
He added, “We remain open to engaging with the Commissioner General and his staff on issues and opportunities that will help our members and the wider private sector.”

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