GRA reveals significant collection increases
Kaieteur News
May 13, 2007
The total revenue collection by the Guyana Revenue Authority for 2005 was $53 billion, surpassing by $4 billion the approved budget of $49B. This, compared to the total collection in 2004 of $48.4B, represents a significant increase of $4.6B or 9.5 percent.
This was indicated in the Annual Reports and Statements of Accounts of the Guyana Revenue Authority (GRA) for the years ending December 31, 2004 and December 31, 2005, which were circulated in Parliament last Thursday.
The Reports were the fifth and sixth consecutive Reports of the Authority since its formation in January 2000, and also included reports by the Governing Board of the GRA on the Authority's performance for 2004 and 2005.
It has been noted that, in 2005, the GRA commenced focusing its attention on improving its effectiveness and efficiency by ensuring that a number of strengthening measures were identified in the Tax Reform Action Plan and the Fiscal and Financial Management Programme.
These measures were pursued to minimize the leakage of revenue, which continued to be a major challenge for the Authority as various schemes were employed by taxpayers in an effort to evade duties and taxes.
On this note, the GRA's Project Execution Unit was resuscitated and a Project Manager appointed.
The Unit was subsequently instrumental in ensuring the appointments of various consultants for the Tax Identification Number (TIN) project as well as preparation of the Value Added Tax (VAT) and Excise Tax laws and regulations, and the regulations for Presumptive Income Tax, respectively, in accordance with the conditions of the Inter-American Development Bank loan agreement signed by the Government of Guyana.
This year, the VAT system has been one of first steps of the reform process following the passage of the VAT Act No. 10, VAT Regulations and Excise Tax in Parliament in 2005. The VAT replaces Consumption, Purchase, Hotel Accommodation, Service, Entertainment and Telephone taxes.
Since November 2004, a VAT implementation team was formed to prepare for the introduction of VAT.
The Governing Board of the GRA reported, too, that several institutional strengthening measures were taken by the GRA, including de-linking the Enforcement, Intelligence, and Quality Review Division from the Customs and Trade Administration, making it a Common Service Division to be headed by an Assistant Commissioner.
Several training programmes were also initiated, while the information technology capabilities of the GRA have been enhanced.