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GRA’s rigid measures led to 166% increase in revenues in four years – Report
Kaieteur News – As a result of implementing a series of rigid measures, the Guyana Revenue Authority (GRA) witnessed an astronomical increase in tax collection during a period of four years, specifically between 2016 and 2019.
GRA Commissioner General, Godfrey Statia.
According to one of the agencies key reports seen by Kaieteur News, it was noted that direct and indirect annual revenue figures increased cumulatively from $2 billion in 2016 to $5.5 billion in 2019, representing a cumulative increase of 166%.
In providing details of notable areas of increase, GRA noted that alcohol revenues increased from $600 million in 2016 to $1.162 billion in 2019, an increase of 91%. As for tobacco revenues, this increased from $1.4 billion in 2016 to $1.8 billion in 2019, an increase of 24%. With respect to environmental levy, this was calculated to be $2.1 billion annually after being introduced in 2017.
In keeping with Guyana’s greening and environmental policy, GRA had implemented an Environmental Levy with effect from February 1, 2017. This was based on legislative amendments to the Customs Laws outlined in the 2017 budget. The levy was implemented vide the amended Section 7A of the Customs Act, Chapter 82:01, which imposes an environmental levy of $10 on every non-returnable unit of metal, plastic, or glass container of alcoholic or nonalcoholic beverages or water, whether imported, locally manufactured or produced in Guyana.
With reference to the increase in revenue for alcohol and tobacco, the tax agency noted that it implemented stern measures that were designed to reduce the illicit trade of these products in Guyana. To this end, GRA reminded that a secure digital excise stamp solution was launched as a pilot in December 2017 in Guyana on existing inventories for large importers and resellers of alcohol products. GRA had teamed up with Canadian Bank Note (CBN) to implement secure digital tax stamps on excisable products with a view to reducing the amount of alcohol and tobacco products smuggled through Guyana’s porous borders. GRA said this measure is an anti-smuggling initiative first rolled out in Region Four to safeguard the billions of dollars in Excise Taxes being lost to the illicit trade.
Further to this, GRA noted that in 2019, it had introduced a specific tax on cigarettes as another measure to stymie smuggling of the product. GRA said it had requested the introduction of a specific excise tax of $2,500 per 1,000 sticks on cigarettes and tobacco products. The agency said this, coupled with the Excise Stamps measure, will help to stem the revenue loss for GRA and protect the markets of legitimate importers. It should be noted, that the single specific Excise Tax on cigarettes was implemented while retaining the Customs duties and Value Added Tax accordingly.
Looking ahead, GRA said it intends to improve revenue collection in the nearer term by reducing costs, improving operating efficiencies and focusing its resources on the use of technology to provide services that better meet taxpayers’ needs and make it easier for them to comply.
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