GUYANA’s government is attempting to help consumers and the business community save some $4.8billion by reducing freight charges and amended the necessary laws.
In a release from the Office of the President in Guyana, the Office stated that the impact of Covid-19 resulted in marked increase in shipping costs from some countries, moving from an average of US$2,500 to as much as US$15,000 per 20 foot container and from US$3,500 to over US$20,000 for a 40 foot container.
Duties, excise tax and input Value Added Tax (VAT) are calculated utilising cost, insurance and freight of imports, therefore allowing the increased cost of freight to be passed on to the consumer by the importer.
The 0ffice stated, “Having carefully assessed the impact of Covid-19 on the economy to date and on prices passed on to the consumer due to the increased shipping costs of imports, President Irfaan Ali has instructed that further reliefs be granted by reducing the freight charges to pre-pandemic levels (March 31, 2020) in the calculation of customs duties, excise taxes, and input VAT on goods imported.
“Consequently, the relevant aspects of the Customs and Value Added Tax Acts will be amended to reflect this concession.”
The measure will save up to $4.8billion over a six-month period.
“Government agencies will be tasked to ensure that such savings are passed on to the consumer and not pocketed by unscrupulous importer,” the office added.
The concession is effective on all invoices dated August 1, 2020 and will remain in effect until January 31, 2022.
