THE Guyana Revenue Authority (GRA) has removed the value –added tax (VAT) charged on airfares by local carriers to transport passengers and cargo to several Hinterland airstrips.
According to the GRA, following an agreement between the Government of Guyana and Air Services Limited, the revenue body advised air service operators that no VAT shall be charged on airfares to a few airstrips , many of which are located in Region Nine (Upper Essequibo-Upper Takutu).

“Pursuant to the Agreement, VAT is also exempt from airfares to transport passengers or goods to any other rural airstrip, provided that satisfactory evidence is submitted to the company that the passenger is living in the rural area,” the GRA said.

The list of aerodromes named by the GRA includes several in Regions One, Two, Seven, Eight and Nine. They include Baramita and Bemichi in the Barima-Waini region, Imbaimadai, Kamarang and Kaikan in the Cuyuni-Mazaruni region, Paramakatoi, Kato and Orinduik in the Potaro-Siparuni region and Aishalton, Annai and Surama in the Upper Essequibo-Upper Takutu region.

Most aircraft operators welcomed the move while others called for a removal of the tax on all domestic travel.

Captain Gerry Gouveia noted in a Facebook post that VAT was implemented for domestic flights in 2017 and flights to a few aerodromes were exempted after some amount of lobbying under a special agreement.

He said he has been lobbying for the removal of the tax on domestic flights and tourism.