“Free-for-all” fuel business in Region One… Aircraft operators have been breaching Customs Act for years …GRA Boss
For more than 20 years, Region One has been a “free-for-all” port for those involved in the fuel industry. But that is about to change says, GRA Commissioner General, Godfrey Statia.
The tax chief told Kaieteur News that many who are
Roraima Airways Chief Executive Officer (CEO), Captain Gerry Gouveia
part of the trade, such as aircraft owners, would have no choice but to alter the manner in which they have been dealing with the sector.
Expounding further, Statia said that aircraft owners who have been shuttling fuel in the Region, have been in breach of the Customs Act for years now.
The tax chief said, “As you know, we were losing billions of dollars in taxes on fuel passing through Mabaruma and Eteringbang. With an office and effective systems in place at Mabaruma, we have been able to close a lot of loopholes while saving on taxes. We are now collecting taxes on all fuel passing in there.
“Now we are trying to close the Eteringbang loophole which is why I am speaking with the aircraft owners to come in for a meeting. They are the ones shuttling the fuel in those locations. I made it clear to them that shuttling the fuel there is a breach of the Customs Act and I can seize their planes. They have been ferrying uncustomed fuel along the border. It has been a free-for-all for years and it needs to stop.”
The Guyana Revenue Authority noted that Air Services Limited and Roraima Airways have been shuttling fuel along the Region One Border for some time now.
WAY FORWARD
Roraima Airways Chief Executive Officer (CEO), Captain Gerry Gouveia told Kaieteur News yesterday that he was part of the GRA meeting which he found to be “quite cordial.”
“They wanted the help of the private sector in trying to regularize what happens on the border and they came up with a solution that we are totally in agreement with. The Commissioner General and his team will eventually release the details on the strategy but I can say now that it will help small miners (in the area who are in constant need of fuel).”
The Roraima Airways Captain also provided some perspective on the shuttling of fuel along the border. He noted that the area is home to a host of mining activities and the cost of bringing fuel from Georgetown to that part of the country is astronomical. He noted that this is what led to the shuttling of fuel within the area, a practice that has been ongoing for years. He likened it to a “free-zone.”
“All we do is, people charter our plane and we take it in the various areas…GRA wants to help the operators…They (GRA) will have a meeting with the miners. It was all done in good faith and the miners will be happy with the effort by GRA.”
He insisted that the work of GRA is to get the process regularized.
ESTABLISHING OFFICES
There have been accelerated moves by the revenue authority to open new offices in the Region One area.
The GRA Boss told Kaieteur News that the offices are critical as Guyana loses close to $3B a year through the Eteringbang area. “It is strictly fuel that comes from Venezuela and sold to the gold mining industry and we don’t get the taxes there,” the tax chief expressed. He noted too, that GRA does not collect taxes on the fuel going into the Morowhanna area.
The situation in Region One is one that has existed for over 15 years.
Statia in a previous interview had said that the nation is actually losing approximately $40M in taxes every week on fuel at just those two ports in Region One.
He informed this newspaper that the matter is being looked at with moves being made to have the necessary infrastructure and officials in place.
This matter was also one that was raised by the Tax Reform Commission which was established by the Granger administration. The Tax Committee included the likes of Statia, economist Dr. Thomas Singh, Chartered Accountant, Chris Ram and Head of the National Industrial and Commercial Investments Limited (NICIL), Dr. Maurice Odle.
According to the Commission, excise taxation of petroleum products in Guyana is quite distorted with a range of exemptions for particular industries and, at least in one case, an entire region.
The Committee was informed by the Guyana Revenue Authority that fuel and other items entering Region One attract no tax, a practice which was allowed by former President Bharrat Jagdeo and which continues.
Needless to say, the Commission said that this practice is completely unlawful and recommends its immediate cessation.
