Georgetown: The National Assembly this evening passed the Customs (Amendment) Bill 2015 repealing an environment tax, which is inconsistent with the Revised Treaty of Chagaramus, and which has resulted in the Caribbean Court of Justice (CCJ) levying charges against the Government of Guyana to the tune of millions.
The tax in the bill was an infringement of the trade policy in the revised treaty, which allows for the free movement of goods or the omission of importation duties on Caricom goods.
The tax, violated the Caribbean Community (CARICOM) Treaty and resulting in the previous government being taken to court by Rudisa Beverages. The CCJ later ruled against the Government of Guyana and awarded damages of US$6.2 million to the Surinamese company. The CCJ also ordered that Guyana stop collecting the tax, especially for CARICOM treaty members.
Minister of Finance Winston Jordon explained that in passing the bill the country will also be losing at least GUY$1 billion annually. To this end, he called for a structured environmental tax, to be considered for the one being repealed and urged that this be done with haste.
Minister of Legal Affairs Basil Williams who also spoke on the bill, advised that its passage will ensure that Guyana meets the July 31 deadline for the removal of the tax in keeping with the CCJ judgment. He also advised that unlike the previous administration, the fine will be paid.
In May 2014, the court had ruled that the continuance of section 7 (a) of the Customs Act, which is an environmental levy or tax of $10 on all imported non-returnable beverage containers imported into Guyana, was discriminatory and amounted to a violation of the provisions of the Revised Treaty of Chaguaramas, which was passed into Guyana’s law in 2006. Guyana was also ordered to repay the sum of US$6,047,244.47 together with taxes paid from October 25, 2013 to the date of the judgment.
The beverage company in 2013 had filed an application with the CCJ alleging that the imposition of the environmental tax is a breach of the RTC. Specifically, they argued that the tax is inconsistent with CARICOM trade policy set out in Articles 78, 79, 87 and 90 of the of the RTC which provide for the free movement of goods and prohibitions on the imposition of import duties on CARICOM goods.
Minister of Foreign Affairs Carl Greenidge who also rose in support for the bill, noted that contrary to what is being peddled, the previous government knew it was infringing on the treaty and failed to seek to address this from 2002 to 2012. To this end, he said that the new administration, though it will pay the fine accepts no responsibility for the damages incurred.
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