– with hope of improving performance of certain sectors

THE Guyana Revenue Authority (GRA) will be looking into the impact of the amendment to the Value Added Tax (VAT) Act in January 2018 on the Guyana Manufacturing and Services Association (GMSA).

According to the GMSA, as a result of the amendment, some sections of the manufacturing sector involved in exporting were unable to reclaim the VAT paid on inputs of the goods exported.

As such, a team from the GMSA led by its President,Shyam Nokta met with GRA Commissioner-General Godfrey Statia and his team on Thursday.
They were accompanied by board member Ramesh Dookhoo and Chair of the Forestry and Wood Processing Sub-Sector, Rafeek Khan.

There, the GMSA contended that the amendment has affected major sectors of the economy, primarily the forestry and wood-processing sector.
VAT on such inputs, the association says, serves as a disincentive to producers who primarily manufacture for export.

The GMSA has noted that this also comes at a time when the forestry and wood-processing sector faces several challenges, such as the deplorable state of interior roads when there is a strong push for more value-added products to target external markets.

“The commissioner-general indicated that in keeping with Minister of Finance Winston Jordan’s pledge of no new taxes, and the fact that the amendment was intended to improve administrative efficiency of VAT administration, that GRA is exploring ways to address the issue,” The GMSA said in a release on Thursday.

“He also requested that the GMSA explore other avenues and make suggestions with financial analyses, rather than making broad statements, since the GRA’s analysis, using return submissions, has revealed a negligent impact on the industry,” it added.

During the meeting, the GMSA said, it took the opportunity to raise other issues pertaining to tax administration; the implementation of the new scanner system and processing times; excise duty on indigenous wines and excise taxes on Shandy.

A request was also put forward for the consideration of incentives for manufacturers in relation to energy and renewable energy technologies.

Meanwhile, a list of procedural issues relative to facilitating the smooth flow of businesses was also given to the commissioner for his attention in the near future.

“The GMSA remains encouraged by the commissioner-general’s willingness to engage, and that the GRA will give active consideration to the issues raised and make recommendations to the Minister of Finance on the way forward,” the release said.