Court rules GRA’s 10% to 30% jump in excise tax for re-migrants duty-free unlawful
Chief Justice Roxane George on Monday during a ruling declared that the Guyana Revenue Authority (GRA) acted unlawfully by increasing excise taxes on remigrants’ duty-free vehicles from 10% to 30%. The Chief Justice ruled at the end of a legal challenge brought against the GRA by Aditya Basdeo, who in court claimed in his court documents that he faced inflated taxes on his imported vehicle.
In July 2023, the GRA raised the excise tax rate on vehicles with engines larger than 3,000cc from 10% to 30%. the Chief Justice in her ruling granted an order declaring the imposition as illegal.
The issue arose when Basdeo, upon receiving duty-free concessions as a re-migrant, was required by GRA Commissioner General Godfrey Statia to pay 30% excise taxes on his 2023 Toyota Landcruiser.
A press statement from the law office of Siand Dhurjon who represented Basdeo noted that the GRA’s decision was contested, highlighting the correct rate of 10%. Despite an explanation provided to the GRA in April by Badeo through his attorney, the authority insisted on the higher tax, prompting Basdeo to file a lawsuit in May.
GRA’s Deputy Commissioner, Gavin Low, defended the tripled tax rate, citing regulations from July 2023. For the past year, the GRA had applied this increased rate, along with doubling the taxes for vehicles with engine sizes between 2,000cc and 3,000cc.
The court heard that the July 2023 regulations had not been properly enforced, failed to be published in the Official Gazette, or tabled in the National Assembly. Consequently, the GRA had been unlawfully collecting 30% taxes without authority.
Chief Justice George granted all orders requested by Basdeo, quashing the 30% assessment and mandating the application of the correct 10% rate. The Judge also ordered the immediate release of Basdeo’s Landcruiser upon payment of the correct taxes and instructed the GRA to cover storage and legal costs.
Further complicating matters, evidence showed inconsistent tax rates being charged during the same period, with some taxpayers paying 10% while others paid 30%. The GRA claimed this disparity was due to the timing of exemption applications.
The Chief Justice emphasized that the GRA should contact all affected taxpayers to refund the wrongfully collected excise taxes.
Basdeo’s attorney, Dhurjon, underscored the broader implications, stating, “The Excise Act and its regulations do not permit the GRA to charge beyond 10%. This verdict opens the door for all remigrants who overpaid to seek refunds.”
Under the remigrant tax scheme, Guyanese who have lived abroad for five years are eligible for duty-free concessions on imported personal effects and vehicles, paying only applicable excise taxes. Without these concessions, the total taxes on a vehicle like Basdeo’s Landcruiser could amount to approximately $90 million.
