Managing Director of Woodpecker Products, Trophies and Sports, Luana Fernandes said that before the implementation of the Value Added Tax (VAT) on January 1 this year, all sports items were subject to a 10 percent duty tax but no consumption tax.
However, Fernandes stated, since the implementation of the 16 percent VAT, the Guyana Revenue Authority (GRA) is requesting the 16 percent amount on sports items and goods that are not VAT exempted.
Stabroek Sport called GRA’s VAT headquarters to get a sense of the items that are exempted but the officer who answered the phone quoted the reference in the First Schedule of the Customs Act since there was no list available.
Fernandes showed Stabroek Sport a document the store received from the GRA, requesting VAT on “Sports Gear and Equipment” and “Shields and Cups”. She indicated that as far as possible the store has been attempting to follow the VAT rules.
“I just brought in some stuff in December (before VAT) and I got them cleared until January 8 (after the implementation of VAT) and I was required to pay a 30 percent consumption tax,” Fernandes said.
The 30 percent consumption tax that Fernandes paid in January this year is a notable development in the importation of sports items and equipment since before that period, only a 10 percent duty was required in similar situations.
“If it is that consumption tax is abolished in 2007, how come you charge consumption tax on sport items,” Fernandes asked, with no clear answer in sight. Even GRA could not say what are the sports items that are exempted and therefore give a tax breakdown for each category of items.
“People believe sports items are zero-rated but apparently that is not so,” the sports store owner said, adding that Guyana Olympic Association executive Garfield Wiltshire had met with Director of Sport Neil Kumar recently to discuss the situation.
Kumar is expected to put these concerns before the government.
