THE Guyana Manufacturing and Services Association (GMSA) has said in a press statement issued on Thursday that it is currently making efforts to engage relevant authorities to commence the process of applying for a suspension of the recently imposed import taxes.This newspaper understands that the GMSA was made aware that the Guyana Revenue Authority (GRA) is moving to enforce import taxes on items which are ineligible for exemption, as is outlined in the Revised Treaty of Chaguaramas. However, the local manufacturing sector wants tax waivers granted under the former administration to continue until a plan of action is developed to review the existing agreement.

The GMSA release has said that at a meeting with GRA and the Foreign Affairs Ministry, its president, Eon Caesar, expressed the association’s concerns about the significant consequences which could result from the imposition of these taxes.

“It is imperative that manufacturers — and more importantly, the purchasers of products — be cognizant of the fact that this requirement would result in higher prices for products and services. This decision has a direct impact on the ‘end users’, as products and services which they normally utilize would become more expensive.” Caesar said.

According to the statement, one impact is the fact that while local manufacturers would be required to pay more for raw materials — and as a consequence increase the costs for their products — foreign competitors can continue to charge current rates for their products. This, the association says, is a significant issue for the local manufacturing sector, as foreign competitors would be able to offer products at cheaper prices, creating an uneven playing field.

With representatives of both GRA and the Finance Ministry being present at the meeting, it was revealed that the association has engaged them on commencing the process of applying for a suspension of the import taxes.

“The GMSA is prepared to lead the process for a speedy resolution to the suspension of the import taxes, as this situation can have dire consequences for Guyana’s manufacturing, business and economic sectors,” Caesar said.

He was keen to note that while this is a short-term approach, GMSA is prepared to engage the Foreign Trade Department of the Ministry of Foreign Affairs to achieve the long-term goal of reclassifying items ineligible for import tax exemptions under the Revised Treaty of Chaguaramas.

Caesar also expressed his appreciation for the support extended by GRA and the Foreign Affairs Ministry.

“The fact that both entities have representatives at this very important gathering speaks volumes about the beneficial relationship with the GMSA. I wish to applaud the work of the GRA and the Ministry of Foreign Affairs in providing a wealth of support to the Association on this matter. We will continue to work closely with both entities for a speedy resolution,” he said.