Trinidad-based firm suing Guyana over environment tax

Monday, April 25, 2016, http://www.jamaicaobserver.com...nvironment-tax_58600

GEORGETOWN, Guyana (CMC) — The Guyana Government says it is facing lawsuits from two companies over the implementation of a controversial environment tax.

Legal Affairs Minister Basil Williams said that the Trinidad-based SM Jaleel and Guyana Beverages Inc have filed lawsuits similar to the one filed by Rudisa Beverages in 2014.

The Trinidad-based Caribbean Court of Justice (CCJ) had ordered Guyana to repay more than US$6.04 million to the Suriname-based beverages company over the environmental levy it imposed on the importation of non-returnable beverage containers.

The CCJ ruled that the Government also repay to Rudisa Beverages any further tax paid from October 25, 2013 to the date of the judgement.

The Suriname-based company, whose products are imported into Guyana and distributed through CIDI Distributor, the other co-claimant, claimed that the environment levy under the Customs Act of Guyana did not contain any exemption in relation to Caribbean Community (Caricom) goods.

 It said that the environmental tax had the effect of raising the cost price on each imported container by GUY$10 (one Guyana dollar = US$0.001 cents) and that no similar tax is imposed on local producers of non-returnable beverage containers.

It also argued that under the Revised Treaty of Chaguaramas, which governs the regional integration movement, the imposition of the levy must be regarded as an import duty.

Williams said that the two companies have sought “special leave to appear as parties before the CCJ for the purpose of filing an originating application claiming relief and reimbursement against Guyana”.

The companies are claiming funds from January 1, 2006 to the date the controversial tax was repealed in August 2015.