IT is my contention that the recent parliamentary fiasco regarding the inexplicable and unjustified non-support by the combined Opposition to callously reject Bills tabled before the National Assembly which target necessary action to address Guyana’s obligations as a Member of the World Trade Organization (WTO) and signatory to
CARICOM’s Revised Treaty of Chaguaramas, highlights and provides testimony yet again,
of the simply innate existence by the representatives of these parties to reinforce an inexorable denigration of the efforts to advance our dear country’s image on the international front.
It is a widely known fact that failure to honour one’s contractual obligations at any level, renders the defaulting party open to remedies awarded as a result of being sued and in the case of countries, sanctions which will likely serve to derail and attenuate economic progress that has been made.
In this regard, it is my unquestionable conviction that the Guyanese people, including those citizens who would have given support to APNU and the AFC at the last National and Regional Elections, are now far more informed of the level of manipulation and sinister guiles of a few power hopefuls who continue to seek personal aggrandisement at any cost, even at that of the development of the country at large and the wider benefit of all Guyanese.
Their partisan attempts to swipe Guyana’s international credence with a paint brush tainted with unworthiness that is mirrored only by their own myopic, deleterious judgment and uncaring behaviour, are actions that should never be accepted and must be made known to all. I shall deal with the implications of the non-support for the Environmental Tax Amendment Bill, to clarify my claims for the benefit of all citizens.
First, Section 7A of the Customs Act Cap. 82:01 has long been the basis for the application of Environmental Taxes in Guyana, as in many other Caribbean and developing countries, in a manner that historically served to assist in the protection of local industry development. The current provisions of this legislation mandate the Comptroller of Customs to levy and collect at the time when Customs duties are paid, 10 dollars on every unit of non-returnable metal, plastic, glass or cardboard container of any alcoholic or non-alcoholic beverage imported into Guyana.
It must be noted however that while implementation by the Guyana Revenue Authority in this regard has resulted in the collection of revenues that were paid into the Consolidated Fund, the approach correctly has been deemed an unfair trade practice given that its preferential type format does not allow for the levy and collection of the taxes on similar goods manufactured by domestic industries, contrary to the terms, conditions and by extension obligations, of CARICOM’s Revised Treaty of Chaguaramas and the WTO Convention since 1995.
Notwithstanding several decisions of CARICOM’s Council for Trade and Economic Development (COTED) since 2001, the Environmental Levy legislation of Guyana remained in breach of the provisions of the Revised Treaty. At the 33rd COTED Meeting in May 2012, the Council had requested that immediate action be taken to make the Environmental Levy legislation compliant with Treaty obligations. The situation, however, has not changed as the matter remains on the COTED agenda.
Further, A company registered in Suriname has filed a lawsuit against Guyana for the reimbursement of environmental taxes paid by the company under Section 222 of the Treaty. Additionally, the WTO since 2009 had raised the issue of breaches by Guyana regarding the application of the Environmental Tax in a discriminatory manner and held Compliance Review Meetings with defaulting member states to address the issue.
It follows that the decisions by the combined Opposition in Parliament not to remove the discriminatory elements of the legislation within the acceptable limits of the timeframe previously agreed to, would result in collections that would continue to be in breach of our international trade obligations. The concomitant expectations would likely be reciprocal international reactions which may result in sanctions, added overseas taxes that would render our country’s exports in general less competitive and necessitate allocations of the money of the People of Guyana to settle disputes and pay remedies.
Permit me to also point out, that the enactment of the new Environmental Tax Act Amendment which vests the administrative authority in the Commissioner-General of the Guyana Revenue Authority, seeks to amend the First Schedule of the Customs Act by the deletion of Section 7A and to implement the new legislation for administration of the Environmental Tax, thereby bringing Guyana into compliance with its obligation under the Treaty of Chaguaramas and the World Trade Organization Convention,to both of which Guyana is a party.
Editor, from an analysis of the tabled instrument, one could easily rationalise that it proposes to apply the tax on every unit of non-returnable containers of alcoholic beverages imported, as well as for the first time, on goods manufactured in Guyana at G$5 per unit in an effort to allow the tax to remain revenue neutral. Projections made in this respect, indicate that the latter is quite achievable based on the research into the number of containers used in local production.
It is also clear that the reduced applicable rate of tax from G$10 on imports, could render domestic sales of local products a little less competitive (by G$5 per unit). It is anticipated however that the impact of this application, ‘would be cushioned by the refund of the taxes’, in cases where the empty containers are collected from local sales and re-exported to recyclers by the manufacturing company.
While I am aware that the latter is currently being done in chipped form by contracted persons to some major manufacturing firms, it is also obvious that job creation would be impacted in a positive way by the implementation of this legislation.
I am also convinced that this, coupled with a complementary public awareness programme, would help our citizens to inculcate habits which would be helpful to environmental friendliness.
The situation begs many open- ended questions, among them:
1. How could some elected representatives whose role in Parliament, is to objectively address the advancement of the improved welfare of the people of Guyana be so shortsighted?
2. Why should it be acceptable for any citizen that APNU’s Carl Greenidge in conceding awareness that there is a case against Guyana at the level of the Caribbean Court of Justice in relation to the provision say that: “if Guyana loses the case we,will lose money, but the problem is not here in the House.” Would this not be the same taxpayers’ money that was cut from the budget now being gifted away in significant quantities?
3. How could APNU’s Joseph Harmon objectively ask questions of the House regarding what is being done by Government with the Environmental taxes collected? Is he not aware of the monies being paid into the Consolidated Fund and approved for spending on projects approved by Parliament?
4. Why would the combined Opposition deliberately contribute to exposing Guyana to a risk of litigation and sanctions under the originating jurisdiction of the Caribbean Court of Justice at a cost to taxpayers?
Editor, it should be noted that the questions can go on and on with the answers pointing to a singular direction of the excessive abuse of the one-seat parliamentary majority, to unjustifiably frustrate the efforts of Government’s advancement of the development charter. While this is just one area of open, uncaring behaviour, the time has come for the condemnation of these actions by all Guyanese.
At this juncture, for the purpose of expedience and having consideration for the paucity of space, I implore members of the PPP/C party in Government to work harder in ensuring a realistic and complementary connection with all of Guyana. In particular, efforts must be dedicated to the strengthening of support bases and the building of bridges with the objective persons in our communities and neighbourhoods. I dare say that, in the interest of the advancement of Guyana, the people of our wonderful country should consciously take note, be ready and committed to take action against the ill advised and impetuous hijackers to progress.