Georgetown: The Guyana Revenue Authority (GRA) is in the process of conducting an appraisal of the Excise Tax on alcoholic beverages with the aim of streamlining the regime in accordance with regional and international best practices.
The Ministry of Finance has approved the Revenue Authority’s proposal for the review which would include among other things changes to the application of the tax from Ad Valorem (a tax based on a fixed percentage of the product value) to Specific (a tax calculated based on alcoholic strength).
Assessments show that several other sister Caribbean Community (CARICOM) states are collecting Excise Tax based on the Specific Tax and it is the GRA’s view that same should be adapted by the local administration.
The GRA plans to meet with local manufacturers and importers to discuss the impending changes and most importantly, the implications of the reform process on those who will inevitably be subject to the tax.
Meanwhile, as efforts continue to curtail smuggling and establish greater control of the flow of imported tobacco, spirits and beer imports, plans are in the making to introduce high-security Excise Stamps.
The GRA is in partnership with a foreign company to facilitate the timely and successful introduction of the stamps and the accompanying legislation, software and other support initiatives that will be required.
The stamps will target mainly tobacco and spirits, making the job of inspection by enforcement and customs officers much easier and address concerns about public health and counterfeit products.
Excise Tax is an indirect tax levied on alcoholic beverages, motor vehicles, tobacco products and petroleum products produced or sold (domestic and foreign) within Guyana.
Additionally, it should be noted that as a result of the Caribbean Court of Justice (CCJ) ruling on the recently repealed Environmental Tax, a policy decision has already been taken to replace the said tax with a more comprehensive tax addressing the issue of non-biodegradable packaging for all food items, produced locally and imported.
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