THE Guyana Office for Investment (Go-Invest) Chief Executive Officer (CEO), Keith Burrowes said a proposal will be made to the Government for a total review of the list of concessions being granted investors.According to Burrowes, the investment agency is now working more closely with the Private Sector Commission (PSC), and that entity has already been informed of the review.

The PSC has been supplied with a list of concessions granted to the various sectors, the Go-Invest CEO said, while pointing out that there are a number of emerging sectors, but there is a challenge to entertain their proposals.
He said a new policy framework will have to be put in place to capture these sectors, and this is one of the things the investment agency will be strongly advocating in its discussions on the revision of the concessions granted.
Burrowes’s comments came amid complaints from small potential investors that under the current legal framework for concessions, they are excluded.
One small investor pointed out that vulnerable women and groups involved in cottage industries do not get concessions on bottles for their products.
This, the investor said, makes it difficult for these groups to survive in business, especially when they are burdened by high energy costs. A revision in policy would be vital in jump-starting enterprises at the cottage level, she said.
On the current list of concessions, bottles are not included, but manufacturing of bottles can be considered for tax holidays.
Go-Invest will also be consulting with the PSC to develop an investment model for Guyana, and through their close collaboration, many of the complaints from the private sector are expected to be resolved.

Concessions
Concessions or waiver of duties and taxes are granted for equipment and vehicles in a number of sectors. In the tourism sector, hotels with 15 rooms benefit from concessions for building materials and furnishings. Consideration is also given to hotels with 10 rooms in outlying areas for similar benefits.
In the manufacturing sector, concessions are granted for equipment and machines related to the investment. The same applies to the energy and agricultural sectors. However, for businesses into manufacturing, in order for them to have their inputs, they have to apply to the Guyana Revenue Authority (GRA) to register as a manufacturer to be eligible for concessions.
The usual process involves the potential investor providing an application request to Go-Invest, and after an interview/discussion is conducted, a draft investment agreement is forwarded to the Minister of Finance for his signature.
It was noted that after the Minister would have affixed his signature to the agreement, the process does not end there. In order for the investor to access the concession, an application has to be made to the GRA for a Commissioner General Letter (CG). When this is granted, approval is granted to the investor to access the concession he seeks.

Tax holiday
An entrepreneur constructing a call centre is granted concessions on building materials, furnishings, electrical equipment and fittings. A business renting office space for a call centre operation also gets concessions on furnishings and equipment they would need.
Businesses in this sector also get tax holidays for the first five years in operation. Upon completion a review is done, and if all stipulations have been adhered to, the tax holiday is extended for an additional five years.
Burrowes said that while the investment agency welcomes potential investors, and investment in Guyana, it would not turn a blind eye to the requirements they will have to submit to move the process forward.
He said all investors will have to submit financial information, pointing out that once they are registered they should be filing financial statements annually.
Go-Invest, he said, will be looking to verify that all investors are still registered and have not been struck off the books.
The same level of scrutiny, the Go-Invest CEO said, will be paid to international investors. Closer attention, he said, will be paid to their credit ratings and credit worthiness.
He observed that there are cases where investors invest $50 million in an operation here, but there is no likelihood of them receiving a profit in the next five years.
From where?
The question that must be asked, he said, is “Where are they getting their working capital?”
Burrowes also contended that Go-Invest should be operating like a bank, but noted that not all have agreed with him on this approach.
But he said he will not be swayed, pointing out that if the Government is granting a concession where the total value is $10 million, it must have due return within a timeframe.
The Go-Invest CEO emphasised that persons must not believe that concessions are “hanging there,” but understand that there is a cost to every concession granted.
“It means that that money is not available in the public treasury to probably build schools, roads and so on, so we are going to be very adamant that the investment that is made meet the expectations, because our job is to contribute to the national economy,” he told the forum of potential investors.
The forum also heard that Go-Invest provides a range of benefits and opportunities to exporters. It provides them with trade information to tap into available markets; encourage participation at trade exhibitions locally, regionally and internationally; do information-sharing; work closely with exporting organisations to ensure that problems affecting exports are expeditiously addressed; assist with obtaining factory space or land for investment purposes; assist with coordination of joint-venture efforts between local and foreign investors; and assist investors to obtain exemptions from customs duties and taxes on equipment, machinery and vehicles, among numerous others.
The geographic position of Guyana on the coast of South America gives investors easy access to 311 million consumers. This translates into a US$409 billion export market with an overall purchasing power of US$2 trillion.

By Tajeram Mohabir