VAT collection grew by $8.9B at mid - year

VAT collection grew by $8.9B at mid – year

Nov 11, 2021 News

– despite GRA’s complaint that registrants not filing returns

Kaieteur News – Value-added tax (VAT) and excise tax collections grew by $8.9 billion, or 21.5 percent, when compared with the level at the end of June 2020.
This is according to the Ministry of Finance Mid-Year Report. The Report states that VAT increased by $1.2 billion to $27.4 billion, when compared with the same period in 2020. The growth reflected in this area was primarily due to a $1.8 billion increase in VAT collections from imported goods and services, outweighing the $0.6 billion contraction in VAT collections from domestic supplies.
The figures undermine government’s stated commitment to reduce taxes and ease the cost of living during their elections campaigns. Moreover, the Guyana Revenue Authority (GRA) mere weeks ago complained about the “drastic reduction in filing of VAT returns by VAT Registrants”.
Earlier this year, a host of tax reductions were announced by Finance Minister, Dr. Ashni Singh. These included lowered water rates and removal of VAT on residential and individual data usage, as well as on certain food and household items. The Government had also promised no new taxes.
While those reassuring words were welcomed by the Guyanese tax payers with open arms, the Mid-Year Report suggests that “Internal revenue collections totalled $66.6 billion, an increase of 19.1 percent over the same period for 2020. This was mainly due to a $5.1 billion increase in corporation tax collections from private companies in the mining and quarrying, retail trade, and telecommunications sectors”.
When it comes to personal income taxes collections increased by $2.9 billion or some 16.4 percent. This increase was reportedly as a result of higher payment from companies within the oil and gas sector.
Additionally, in the first half of the year, net property taxes also grew by $1.6 billion or 56.5 percent to $4.5 billion, reflecting higher payments of $1.3 billion by privately owned companies, including those within the manufacture of beverages and telecommunications industries.
“Further, withholding tax collections rose by $1.3 billion, or 8.6 percent above the $15.1 billion collected during the same period in 2020, mainly due to higher remittances from the mining sector,” the report details.
More increases were recorded for Customs and trade tax collections as well as import duties with a growth of $2.7 billion to $12.3 billion and $2.4 billion, respectively when compared with the same period in 2020.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News