Latest update December 17th, 2024 2:00 AM
Jul 01, 2019 News
Every year the country loses billions of dollars to fuel smuggling. Fuel smuggling is widespread and it is one of Guyana Revenue Authority’s (GRA) biggest difficulties.
Illegitimate traders will stop at nothing to defraud the state, in order to save money. This happens at the level of under invoicing and over invoicing. Related party transactions and transport are also common.
Mr. Godfrey Statia, Commissioner General of Guyana Revenue Authority (GRA) made several points about fuel smuggling. He said, “A lot of manufacturers import goods that are not subject to consumption taxes.”
He added that they would have to establish an evaluation database where they would find those who are over invoiced and those who under invoice.
Smuggled goods often include weapons, illicit drugs and fuel all of which threaten the health and safety of citizens and the economy.
Fuel smuggling, in particular, occurs mainly at Guyana’s porous borders. Last October, a vessel by the trade name of Plum Rose was detained with 80,000 liters of liquid, which was later tested and confirmed to be diesel fuel.
Just recently, the GRA in a shared exercise with the Guyana Defence Force (GDF) Coast Guard detained six vessels carrying in excess of 600,000 liters of fuel.
Over the years, GRA has been going after fuel smugglers. The Commissioner General has been in opposition for a change in the domestic laws, which he believes is supporting rather than curtailing the problem of fuel smuggling.
Commissioner General Statia stressed that, “fuel smuggling has always been a problem for the GRA and will continue to be a problem for the GRA,” until they get rid of exemptions and systems need to be put in place.
The persons who are getting exemptions from fuel would receive tax credits. They would have to prove that they have utilised the fuel in their operations and then they would receive a tax credit.
But fuel exemptions are always open and it is more so open to persons or companies that have imports coming through the four large oil companies.
The Customs Act, Section 205 states that any person guilty of evading any of the provisions of the Customs law shall be liable on summary conviction to imprisonment for over one year. Court actions are often the last resort for GRA, Commissioner General Statia said, “We at GRA are not in the practice or taking people’s business. We try to work along with the taxpayers for them to pay. Taking away assets of a tax payer is the last resort for Guyana Revenue Authority.”
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