GRA corrects misconceptions: February 15, 2007
The Guyana Revenue Authority (GRA) wishes to correct misconceptions being peddled in some sections of the society that the GRA, through the implementation of Value Added Tax (VAT) is adding bureaucracy to the importation process.

The statement noted, “all of a sudden, it has been deemed necessary for importers of zero-rated items to have a “remission” letter issued by the Commissioner-General’s (CG’) office prior to the submission of the regular Customs entry at Main Street.”

Mr. Khurshid Sattaur Commissioner General, however, clarified that remission letters are only necessary for those zero-rated items that are conditional and those that may need further interpretation such as pesticides which need input from the Ministry of Agriculture.

He said that the Customs and Trade Administration has been issued with a list of all other zero-rated and exempt items for processing and administration under the VAT.

Gavin Lowe, Director, Remission Unit clarified that the process for tax exemptions since the implementation of VAT has been essentially the same as it were prior to January 1, 2007 when the Consumption Tax was in effect.

He emphasized that the Commissioner –General’s letters issued for tax exemptions is normally issued within two – four days and not two weeks as was recently reported in the media. However, in cases where all supporting documents are not submitted for the exemption or where clarifications are required regarding eligibility for tax exemptions, it may take more than four days.

Meanwhile, the VAT Department has approved a procedure for the importation of raw materials by local manufacturers who export more than fifty percent of their products.

Commissioner (ag.) VAT and Excise Tax (ET) Department Hema Khan said “the proposed procedures for the zero-rating of imports of raw materials to be used in the production of goods which will be subsequently exported by a taxable person who exports at least 50 percent of all of its products include the submission of a request for zero-rating of import of raw materials along with proof of their production, imports and exports for 2006 and a list of raw materials to the VAT and ET Commissioner.”

She added that investigations will be carried out and persons who are eligible will be notified by the VAT and ET Department. Eligible manufacturers can then submit their import documents to the Remission Unit before processing.
 
Provided that all the information required is submitted, the process should take between three and five working days.

The GRA has put various systems in place to facilitate the smooth implementation of VAT and the administration of other taxes as it continues to implement systems that would enhance its customer-friendly environment.