Latest update November 26th, 2024 1:00 AM
GRA says no reports of fuel smuggling since removal of excise tax last year
Kaieteur News – Over the past years, a significant percentage of the revenue recovered by Law Enforcement and Investigative Department (LEID) of the Guyana Revenue Authority (GRA) mainly come from the seizure of smuggled fuel –diesel and gasoline – and reconciliation exercises regarding the importation of same for tax exempted beneficiaries.
However, the GRA reported that since the excise tax rate on fuel was reduced to 0% in March 2022, there has been little to no reported cases of smuggling of fuel or any seizure of same, thus, this has resulted in a negligible to no revenue collection from this activity.
This was revealed in the Auditor General’s report of 2022.
According to report, as a result of the removal of the excise tax on fuel, there is no incentive to smuggle fuel.
“The many activities conducted by LEID to enforce the various tax laws have resulted in a greater level of compliance by taxpayers and businesses that were previously non-compliance, thus minimal revenue collection in those areas,” the report revealed.
During early 2022, there was still some impact from the COVID-19 pandemic which affected revenue collection during that period.
As such, the GRA said there is no revenue from the seizure of certain restricted/prohibited items which are some of the most popular smuggled goods. They include chicken – all such seizures are donated to government agencies; cigarettes – all such seizures are destroyed; mosquito coils – all such seizures are destroyed; and prohibited items are usually destroyed. Further, the revenue body said it continues to experience delays in dealing with seized items from taxpayers.
According to the report, the Head of the Authority indicated that the entity has consistently over the years addressed the processing of seizures in a more expeditious manner. It must be noted that seizures are generally disposed in accordance with the provisions of Section 226 of the Customs Act, Chapter 82:01.
In view of same, processing of seizures may be delayed, in some instances, as a result of, inter alia, ongoing investigations, ongoing Court matters, awaiting payment of outstanding liabilities, etc.
Notwithstanding same, steps are generally taken to prevent loss of revenue; since LEID continues to dispose of seized goods expeditiously in accordance with the provisions of the Customs Act, Chapter 82:01.
It was noted that during the year of review, the GRA conducted fourteen disposal exercises. Further, the report outlined that entity advised that forfeiture and disposal proceedings take time since this process involves a number of processes. These include the gazetting of the items to be disposed; waiting the expiration of the mandatory claim period from lien holders and/or interested persons; and inviting submission of bids from prospective buyers via sealed bids auction where necessary, before the actual disposal process is undertaken.
It is important to note, however that items of perishable nature are disposed of almost immediately.
- COVID-19, Guyana Revenue Authority, inter alia, Investigative Department, ongoing Court matters, ongoing investigations, result of
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