Guyana has been ordered by the Trinidad based Caribbean Court of Justice (CCJ), to repay more than US$6.04 million to a Suriname-based beverages company over an environmental levy it imposed on the importation of non-returnable beverage containers.
The CCJ ruled that the government also repay to Rudisa Beverages any further tax paid from October 25, last year to the date of the judgment.
The Suriname-based company, whose products are imported into Guyana and distributed through CIDI Distributor, the other co-claimant, claimed that the environment levy under the Customs Act of Guyana did not contain any exemption in relation to Caribbean Community (CARICOM) goods.
It said that the environmental tax had the effect of raising the cost price on each imported container by GUY$10 and that no similar tax is imposed on local producers of non-returnable beverage containers.
It also argued that under the Revised Treaty of Chaguaramas (RTC), which governs the regional integration movement, the imposition of the levy must be regarded as an import duty.
The CCJ heard that the effect of the environmental tax was first raised with the Council on Economic Trade and Development (COTED) by Suriname in a series of meetings spanning the period 2001 – 2012. COTED concluded that in so far as it applied to CARICOM goods the levy was in breach of the RTC. Guyana, in turn, committed itself to take the necessary action to eliminate the discriminatory effect of the environmental tax. In 2013, the Guyana government brought legislation to the National Assembly to amend the Customs Act but the proposal was rejected.
During the trial, Guyana admitted that the tax was inconsistent with its obligations under the RTC but noted that the legislation to rectify the discriminatory effect of the environmental tax was rejected by the National Assembly.
The Court also ordered that the Claimants were entitled to a repayment of the tax which had been paid by them and collected by Guyana and therefore ordered that the claimants be repaid the sum of US$6,047,244.47 together with such further tax paid from 25th October 2013 to the date of the judgment.
View the original article here
CCJ orders Guyana to repay millions to Suriname company
