…as environmental tax on non-returnable bottles takes effect

Water, carbonated beverages and all rums and liqueurs produced by Banks DIH in non-returnable bottles have been increased by 10% to cushion the cost of an Environmental Levy imposed by the Government.
The environmental levy of $10 per unit for non-returnable bottles took effect from February 1, 2017. However, products in returnable bottles are not attracting the environmental levy but a bottle refund value. These include the Banks Beer, GT Beer, Guinness, Vitamalt, Shandy, R1 Ice and Malta.

The implementation of this environmental levy comes following the passage of the Customs (Amendment) Bill which paved the way for importers and local manufacturers of products using non-returnable metal, plastic or glass container to package any alcoholic or non-alcoholic beverage to pay $10 per unit.
The amendment to the Customs Act was a result of a 2014 ruling by the Caribbean Court of Justice (CCJ) which resulted in Guyana refunding Rudisa Beverages and Juices N.V a total of $1.2B for environmental taxes collected from that company.

Rudisa had contended, and the court ruled, that the tax violated the rules of trading in the regional trade and integration bloc, CARICOM, of which both Guyana and Suriname are members. As such, it was viewed that collection of the Environmental Tax from CARICOM importers and not local manufacturers was a violation of the Treaty of Chaguaramas, which guarantees the free movement of goods and prohibits import duties on CARICOM goods.
In defending the bill, Finance Minister Winston Jordan said it allows for the imposition of a broad-based, non-discriminatory environmental tax that will prevent a re-occurrence.
During that debate, the Finance Minister had argued that the environmental levy will not be passed down to consumers. “No one will be bearing this cost if the particular container is returned, reused, recycled or re-exported. They will get back their money,” Minister Jordan told the House.

He had said too that the measure forms part of the Government’s green agenda, and as such, seeks to protect the environment. “One just have to look at the unsightly evidence of plastic, glass and other containers being disposed of in a haphazard and dangerous manner in Guyana, leading to clogged drains, canals, rivers. These remind us of the damage and danger posed by this indiscriminate disposal,” he said. He added: “when we protect the environment, we are protecting ourselves and the future.”