- Harmon quizzes Gov’t on Environmental Tax
Opposition Parliamentarians last evening demanded that Government come clean on the $18 billion it has collected in Environmental Tax over the last 18 years.
The demand came as the opposition-controlled National Assembly voted against amendments to the Customs Act dealing with the Environmental Tax, saying that the government has failed to be transparent with the money it has collected.
It is estimated that government collects $1 billion a year through the tax, but the opposition says there is no accountability.
The parliamentarians with the opposition coalition APNU referred to the 1995 speech of then Asgar Ali when the Tax was being set up.
Harmon quoted Ali as saying that the taxes collected would be placed in a Special Fund to conduct “environmental activities.” Ali had also promised that the government would set up guidelines for the use of the tax.
“Is there a Fund? And where is the money? Where are the guidelines for use of funds after 18 years?” Harmon asked the government.
“What has happened here is that this has become a cash cow!” Harmon declared.
He said that all the government has been doing is raking in taxes. Changes to the Customs Act are only intended to burden an already overburdened taxpayer.
The Customs Amendment Bill 2013 sought to amend the Customs Act of 1995 which imposed an Environmental Tax on taxable goods imported into Guyana. The amendment sought to tax the goods imported for the manufacturing of such items locally.
If the Bill was passed, on one hand, it would have meant that a tax of $5 on every container, metal, glass or plastic container holding any drink, alcoholic or non-alcoholic imported into Guyana.
The government wanted all importers of such containers for manufacturing beverages pay the same $5 tax at the same time as the Customs Duties are paid.
With the amendments not passed, it means that the original tax of $10 remains on every container, metal, glass or plastic container holding any drink, alcoholic or non-alcoholic that is imported.
