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SHUT IT DOWN!
One of the disappointing aspects of the APNU+AFC government has been its failure to abolish the duty-free concessions on vehicles that are granted to remigrants. The new government should have abolished the scheme.
The coalition government came into office, flush in the knowledge that this was one of the most abused schemes in the country, one that is fraught with massive corruption. It was disappointing that it has done nothing to seriously amend or abolish this scheme, given the many problems to which the scheme has been subjected. We are now learning that despite the promise to close loopholes in the system, one in every three concessions is suspect.
The scheme allows Guyanese who would have lived overseas continuously for a specified period – I believe it is four years – to enjoy a duty-free concession on a vehicle which they would have owned for a period of at least six months prior to remigration.
The scheme is being exploited. Persons in Guyana who wish to drive luxury vehicles have their Guyanese friends and relatives purchase these vehicles, then come to Guyana and claim remigration status. The vehicles come into the country and are registered in the name of the importers, but for all intents and purposes, are used by other persons, something which is not prohibited by law.
The importers then go back overseas, only to return to Guyana when the vehicle has to be re-registered, again which is not against the law. The GRA does not have the capacity, nor should it ever be burdened with having to monitor a scheme of this nature. It is just unnecessary.
The PNCR cannot be unaware of the problems associated with this scheme, because it was the PNC which invented this scheme and, under Burnham, had run into problems with it. It was also the PNC government which was forced to shut it down. It is surprising that for a government seeking to plug taxation loopholes that this is the one area which was not closed. It says a lot about the mindset of the new administration and its priorities.
Now that the scheme is once again in the limelight, it is time for the President himself to intervene and put an end to it. There are a number of grounds why this should be done. For one, the scheme, as mentioned before, is a legal loophole which allows persons to avoid paying taxes on luxury vehicles.
Second, a strong and compelling argument has been made that the scheme discriminates against Guyanese who opted to stay at home and develop the country. The scheme is enjoyed by persons who would have migrated. It is not granted to those who remained here. Also, Guyanese living here have to pay taxes on vehicles which they purchase here. But remigrants are allowed a tax break on their vehicles.
Third, there are alternative ways of helping people to remigrate. The government does not have to grant duty-free concessions. The persons can be encouraged to sell their vehicles overseas and to use the proceeds to buy a vehicle in Guyana.
Fourth, even if the government is disinclined to withdraw altogether the concessions, it should remove it entirely on luxury vehicles. Those returning home can be offered concessions on smaller engine vehicles.
Fifth, it is time that some assessment is done on the contributions of remigrants to the economic development. There is no real study as to how many of them have brought specially needed skills to the country. A study of this sort can perhaps help the government to develop a remigration scheme that is restricted to only persons having certain skills which are in demand, but which are not available in Guyana.
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