SM JALEEL & Company Limited and its locally-based subsidiary Guyana Beverages Inc., are making moves to claim millions of dollars in compensation for an Environmental Tax allegedly imposed on it by Guyana between 2006 and 2015. This was according to Attorney General (AG), Basil Williams on Thursday, during a press conference held at his Carmichael Street office.
Williams revealed that the companies were seeking special leave to file an “originating application,” claiming relief and reimbursement against Guyana for an alleged breach by the South American country of the principles of trade liberalisation and free movement of goods envisioned by the Revised Treaty of Chaguaramas – the treaty which established the Caribbean Community (CARICOM) and the CARICOM Single Market and Economy (CSME).
The applicants are claiming a refund of the environmental tax imposed on the companies during the period January 1, 2006 to the date of repeal of the Act in August, 2015. The AG explained that they were relying on the judgement in the RUDISA Beverages’ matter in which a similar claim was made.
Rudisa Beverages took Guyana to court over a “discriminatory” environmental tax a few years ago. The company had argued that there was an imposition of $10 on every disposable container imported into Guyana. They eventually won the case, by arguing that a similar tax was not imposed on local distributors such as Banks DIH and Demerara Distillers limited.
The Caribbean Court of Justice (CCJ) subsequently granted the Government of Guyana time to repay US$6M – which the two parties agreed to – by January 31, 2016.
However, Williams explained on Thursday that what is noteworthy is the fact that in the RUDISA matter, the Government of Guyana did not lead evidence to show that the tax was transferred. As such, he noted that the Government intends to lead such evidence in this case.
Further, he noted that the Government of Guyana had served a request to be heard. The matter is scheduled for case management on May 13, 2016 by the Caribbean Court of Justice.
SM Jaleel & Company Limited, also known as SMJ, is the largest manufacturer of non-alcoholic beverages in the English-speaking Caribbean. Since the inception in 1924 their portfolio of beverages has been distributed to over 60 countries worldwide.
SMJ’s products include a wide array of soft drinks, fruit juices, purified and flavoured water, energy drinks, and other fruit-flavoured beverages.
The company’s headquarters is based in Trinidad and Tobago with subsidiary offices in Jamaica, Barbados, Suriname, Guyana, St. Lucia, South Africa and some parts of Asia.