GRA gets ready to roll out anti-smuggling system –Tax Chief

Oct 05, 2017 News

The Guyana Revenue Authority (GRA) is expected to roll out an anti-smuggling system by the end of the month. This is according to its Commissioner General, Godfrey Statia.
The tax chief said that discussions re-commenced with the Canadian Bank Note company. He said that those discussions were aimed at introducing the Stamp System. Statia said that this is in an effort to minimise revenue leaks through the smuggling of alcohol and tobacco.
Statia stated, “I am happy to report that this programme will be introduced by the end of this month with a reduction of project costs of nearly US$1M and the programme extended to 2024 instead of 2022.”
The need to address rampant smuggling in Guyana is one that was raised by the Tax Reform Commission which was established by the Granger administration. The Commissioners said that Guyana is subjected to major revenue loss from smuggling, not only because of its porous borders but, also, at its wharves and ports of entry.
They said that this is especially so for fuel, gold, cigarettes and alcohol, where there are ongoing allegations that collusion and corruption facilitate such tax evasion and revenue leakage.
The officials said, “Fuel markers are available on demand to fuel smugglers, gold mined in Guyana are exported and sold in Suriname because of lower royalty taxes, and smuggled cigarettes and alcohol are being sold in plain sight and on which no duty had been paid.”
They continued, “We understand that the GRA is in the process of acquiring a digital stamping programme for the latter two products at a substantial cost. It is crucial that the GRA avoids the experience of TRIPS which has failed to deliver on its promises and that it ensures that a proper assessment of all the features of programmes is examined and options and avenues considered and evaluated before entering into any contract.”
The tax experts added, “In areas of smuggling, it is known that producers and distributors have a vested interest in reducing such activity, since it reduces their bottom line and, ideally, such parties should have been requested to cooperate with any such a design, rather than having it trusted upon them, as they would be responsible for its implementation.”
The officials said it is recommended that GRA hold consultations with all the players in the field. They said, too, that it is known that digital stamps “in plain sight” are more easily forgeable, than digital markings when so placed in the packaging by producers.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News