– Guyana Revenue Authority
The Guyana Revenue Authority (GRA) has stated that as of February 1, 2017 a number of items and supplies would be zero-rated, based on Amendments to the Value-Added Tax (VAT).
Following the 2016 Budget, the Minister of Finance, Winston Jordan has signed an order effective of January 29, 2016 that the following listed items will no longer attract VAT at the rate of 16, but rather they will now be zero-rated in keeping with schedule 1 of the Value-Added Tax Act No.10 of 2005. The order which makes this effective is Order No. 6 of 2016.
All consumers and importers are asked to take note of the changes accordingly. Packaging materials were previously zero-rated for VAT based on interpretation. This inclusion will now legalize the zero-rating for VAT for manufacturers, who export over 50% of their manufactured products. This is according to GRA, Commissioner General (ag), Ingrid Griffith.
GRA provided the public with a list of the items and supplies to be exempted from tax. On the list were a number of food items inclusive of bread made with wheat flour or whole wheat flour whether plait or sliced and tennis rolls; raw brown rice, raw white rice and parboiled rice; raw brown sugar; cooking oil-vegetable, corn and coconut oil; cow’s milk and milk powder, evaporated milk, liquid cow’s milk including Ultra High Temperature (UHT) milk and fully and partially skimmed milk, powdered milk (skim and cream); baby formula; baby cereal including Nestum, Gerber, Cerelac; fresh fruits excluding apples, grapes, dates, prunes, peaches, plums, strawberries and other assorted berries; fresh vegetables, inclusive of onions, garlic, potatoes but excluding olives, radishes, broccoli and cauliflower; dried split peas, pigeon peas, dried kidney beans, dried chick beans, dried black-eyed peas, however this does not include canned peas and beans.
The list of food items to be tax free includes unprocessed wheat; flour of all types excluding exotic flour; barley flour, plantain flour; roti-mix; self-rising flour; cassava bread, casareep; cheddar cheese but excluding grated, powdered or single sliced cheese; farine; margarine; baking powder, inclusive of all brands of baking powder; cooking salt; fresh, chilled or frozen pork, beef, shrimp, prawns, mutton, chilled or fresh fish, and salted fish but also excluding all canned products.
GRA also made mention of the following consumer items that are to be exempt for the purpose of Section 18. The items are diapers such as pampers for both adults and babies; kerosene stoves; sanitary napkins or panty liners; toilet tissue in rolls; bleach; soap powder; laundry soap; matches and mosquito nets.