Only one local has come forward for tax breaks for petroleum industry

Only one local has come forward for tax breaks for petroleum industry – GRA Boss

Nov 29, 2019 News

-Refutes claim that Ramps Logistics gets concessions

By Kiana Wilburg

About three months ago, Kaieteur News published an excerpt of an interview with Commissioner General of the Guyana Revenue Authority (GRA), Godfrey Statia, who categorically stated that locals will be able to access the same concessions as foreign companies.

GRA Commissioner General, Godfrey Statia

Ramps Logistics Chief Operating Officer, Shaun Rampersad

But since making that declaration, and even informing the business community of same in separate meetings, only one company has stepped forward to access tax breaks on imports for the oil sector.
In a recent discourse with this publication, the tax boss said that Mines Services Limited has applied for tax breaks and is now benefitting from this.
Statia said, “I have said before that I will not wait around for a Local Content Policy. I have also had meetings with the Georgetown Chamber of Commerce and Industry (GCCI), the Guyana Manufacturing Services Association (GMSA) and all of them, and every time they would have raised the subject of local content and the matter that overseas companies have an advantage, I have told them that for consistency purposes, any concession that is granted to international companies for the oil industry would be bestowed upon locals. So far, only one local has come forward…”
The tax boss subsequently questioned the noise being raised in some quarters that locals are at a disadvantage, when they are not even coming forward in the first place to access the said concessions.
Further to this, the Commissioner General set the record straight on a misconception being peddled that Ramps Logistics is using tax waivers it receives to underbid locals. On the contrary, Statia said that Ramps has not asked GRA for Tax waivers nor has he ever given them any concessions, while noting that ExxonMobil is not the firm’s only client.
Furthermore, GRA in a statement to the media yesterday clarified that the agreement between Guyana and ExxonMobil makes allowance for the oil giant’s sub-contractors and affiliates to import, free of duty, VAT or all or any other fees, all equipment and supplies required for petroleum operations, including but not limited to drillships, platforms, vessels, geophysical tools, communications equipment, explosives, radioactive sources, vehicles, oilfield supplies, and lubricants.
The revenue body stressed, however, that food items, alcoholic beverages and fuel are subject to the appropriate tax, and will be so taxed, regardless of whether the supplier is local or otherwise.
It was further stated that if a supplier imports an item for ExxonMobil’s operations, but taxes were still levied, a tax credit would be issued by the Commissioner General, once it is proven that the item was indeed for the entity’s projects.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News