GRA denies high taxation caused BEV closure

Jun 09, 2018 News

The Guyana Revenue Authority (GRA) has disagreed that high taxation contributed to the impending closure of BEV Processors, one of the country’s biggest fishing companies.
The company’s owner, Bruce Vieira, 67, announced this week that he is winding down operations in mid-July, after 34 years in operation.
The businessman said that lower prices, stiffer competition, and deadlines for new regulations and certification for Guyana, forced him to make the decision. He denied that taxation on the fishing sector spurred his decision. However, with 380-plus workers on the breadline, there have been rumours.
Yesterday, GRA said it has seen a letter by Tony Vieira, brother of Bruce Vieira, who believed that the non-renewal of a fuel concession may have helped in deciding the fate of BEV.
Tony Vieira later retracted the statement.
GRA insisted that the Guyana Association of Trawler Owners and Seafood Operators has continued to reap significant benefits since 2005, from an agreement which was signed between the association and the Government.
GRA pointed to statements of BEV which refuted reports that “higher taxation” is among the factors responsible for the closure of the company.
“There is no burden. We have very generous taxation arrangements with the government – duty free, tax free – we get export allowances of 75 percent directly,” the owner was quoted as saying.
GRA made it clear that its policy is to ensure that persons granted concessions act in accordance with the terms and conditions under which the tax exemptions were granted.
“As far as the GRA is aware, BEV Enterprises were utilizing its concessions as per the agreement.”
The company is seeking to place its workers in Noble House, another fishing company at Eccles, among other places.
The company will be paying its benefits and has already given workers six weeks’ notice.

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