The Guyana Revenue Authority (GRA) under the People’s Progressive Party/Civic (PPP/C) Administration had spent billions of dollars to introduce a new accounting system – the Total Revenue Integrated Processing System (TRIPS) – but the coalition A Partnership for National Unity/Alliance For Change (APNU/AFC) Government has opted instead to abandon the 10-year-old system.
Finance Minister Winston Jordan
This announcement was made by Finance Minister Winston Jordan on Monday when he presented the $250 billion Budget for 2017.
Minster Jordan, in making the disclosure, said that, “Arising from the failure of the current TRIPS software, which has failed to provide complete solutions for effective customs administration, the GRA will be moving to a more modern, customised, and proven customs solution.”
He identified the Automated System for Customs Data (ASYCUDA), with single platform window services, as the new system that Government is looking to implement.
According to Minister Jordan, “Not only will this facilitate electronic manifests, but it will also reduce under-invoicing and transfer pricing that is prevalent.”
He stated that with the implementation of ASYCUDA, expected by the end of 2017, current commercial operations will be automated, resulting in improved services for trade, increased customs control capabilities, strengthened accounting and statistical capabilities, full risk-assessment and selectivity capabilities, and fully automated workflow management.
Minister Jordan made the announcement as part of a menu of measures aimed at improving financial administration and tax collection by the nation’s premier collections authority.
Jordan said that Government is looking to increase its taxes collected in 2017.
He told members of the National Assembly that tax revenue is projected to rise to $149.3 billion in the coming year.
The increase, he said, will be driven primarily by 8.2 per cent, or $2.5 billion increase in the collection of company income taxes and an eight per cent, or $1.6 billion increase in personal income taxes.
Despite the announced two per cent reduction in Value Added Tax, Minister Jordan projects that collections are expected to increase by 1.7 per cent, totalling $36 billion.
He did use the opportunity to also report that despite the lower rate of economic activity in 2016, this will not result in lower tax and non-tax revenue collection.
The Minister observed that several one-off payments of arrears from delinquent companies, coupled with increased company income tax collections, are expected to contribute to an improved tax revenue performance, while non-tax collection will benefit from increased royalties from the mining sector.
The projected total revenue collection for 2016 is $174.8 billion, 0.9 per cent more than budgeted, and 7.4 per cent better than in 2015.
