GRA Head says bought salvaged Prado at auction
Posted By Staff Writer On October 27, 2014 @ 5:29 am In Local News | No Comments
Commissioner-General of the Guyana Revenue Authority (GRA) Khurshid Sattaur says that a Toyota Prado imported by him was a used one thus the taxes paid was less than if it was a new one.
Sattaur, in a letter responding to an article in the Kaieteur News headlined ‘GRA boss imports Prado for $1.5M’ which reported that there seems to be varying tax charges for the same type of vehicle and these charges appear to be levied according to who the person is, said that his vehicle was purchased at an auction and repaired.
The KN article had reported that the Legal Affairs Ministry as well as parliamentarian Kwame Gilbert had imported similar vehicles and the values of these were declared at $7.2 million and $7.4 million respectively but Sattaur’s vehicle had a declared value of just under $1.5 million. While the ministry and Gilbert enjoyed full tax exemption, Sattaur is not entitled to full tax exemption and his vehicle attracted a 30 per cent import tax and given the declared value of it, this would amount to $450,000, the newspaper reported. It noted that had the Legal Affairs Ministry and Gilbert been asked to pay the 30 per cent taxes they would have been required to pay $2.1 million.
The newspaper questioned whether Sattaur’s vehicle was undervalued to escape the higher tax.
In response, Sattaur said that he wants to make it clear that taxes on imports are applied on the basis of the CIF (Cost, Insurance and Freight) value. “The Customs value is determined by the acquisition cost and not what a comparison would look like with similar vehicles months after,” he wrote.
According to the tax boss, as such the value of a vehicle acquired new from a show room differs significantly in value from a vehicle that is used and has a significant amount of miles on the odometer and even considerably less if acquired from a salvage firm with considerable damage.
“Unfortunately, my vehicle belongs to the latter category as I had done the honourable thing of buying a used salvaged vehicle at an auction at an amount I can afford. I have not chosen to hide any income and later through money laundering such income to disguise the fact that the purchase belongs to someone else and in the process commit criminal offences,” he said.