Banks, DDL on committee to address proposed tax on beverage holders

Banks DIH Ltd and Demerara Distillers Ltd the country’s two major beverage manufacturers are on a committee set up by the Guyana Manufacturers and Services Association (GMSA) to prepare a position paper on the proposed amendment to the Customs Act that will see local drinks’ manufacturers having to pay a tax on receptacles.

President of the GMSA Mohindra Chand told Stabroek Business in a telephone interview earlier this week that his organisation is already engaging Finance Minister Dr Ashni Singh on the proposed amendment to the Customs legislation since the manufacturing sector is likely to be the most affected by it. “The committee, which includes our major beverage manufacturers is currently in the process of preparing a position paper on the issues that are dealt with in the draft legislation,” Singh said.

The proposed amendment to the existing legislation is believed to have been influenced by concerns expressed elsewhere in the region that the application of the existing tax only to companies importing beverages amounts to a prejudiced position the runs contrary to some of the country’s Caricom obligations; though Chand told Stabroek Business that the issue of the environmental tax went “way beyond its actual application”.

He said the manufacturing sector believed there was an obligation to apply the tax in such a manner that ensured a level playing field among the affected entities.

Meanwhile, Chand told Stabroek Business that both the GMSA and the public as a whole had a right to ask government just how monies raised through the environmental tax were spent. The issue of the tax surfaced late last year during an encounter between senior private sector officials and media operatives. Chand conceded that he had “no idea” how the monies garnered from the taxes were being spent but said the GMSA, as part of the private sector, intended to engage the government on the issue.

More in Business


About these comments

The comments section is intended to provide a forum for reasoned and reasonable debate on the newspaper's content and is an extension of the newspaper and what it has become well known for over its history: accuracy, balance and fairness. We reserve the right to edit or delete comments which contain attacks on other users, slander, coarse language and profanity, and gratuitous and incendiary references to race and ethnicity.

Get the day's headlines from SN in your inbox every morning:

Most Read This Week

  1. Ramesh Manbodh

    Man beaten with bat passes away

  2. Bibi Shareema (left) and her mother Bibi Shameela in
happier times

    Greenwich Park woman died 44 days after brutally stabbed by ex-partner

  3. Bharrat Jagdeo

    Meeting of Cabinet at GDF HQ pilloried by Jagdeo

  4. Fast food lovers inside KFC yesterday

    KFC back in business

  5. The building housing the home and grocery

    Bandits invade Alness businessman’s house, shots fired

  6. Alimudeen Gobin’s demolished house

    Violent storm lashes No. 19 Village

  7. The ganja found in Prashad Nagar (Police photo)

    Police find 52 lbs of ganja in Prashad Nagar house

  8. The AK 47 and ammo found (Police photo)

    AK 47, ammo found behind wardrobe

  9. tensions

    Player tensions with WICB reaching breaking point: Sir Viv

Recommended For You