GRA records $176B in revenue, $86.2B in taxes collected from oil & gas

…sector accounts for majority of $56B in 2022 corporate tax collection

Over $56 billion in corporate tax was collected by the Guyana Revenue Authority (GRA) for the year 2022, with companies from the oil and gas sector largely responsible for this almost doubling of corporate tax collections.
This is according to the Auditor General’s 2022 Report, which reveals that a total of $176 billion in revenue was collected. It was explained that this is a 15.2 per cent, or $23.3 billion, increase on the approved estimates. This increase, according to the Auditor General, can be attributed mostly to companies in the oil and gas sector.

Additionally, companies in wholesale and retail trade, financial and insurance activities, and manufacturing also contributed.
“It was reported by the Authority (GRA) that the positive variances resulted primarily from: (i) significant increase of $9.720 billion, or 147.7 per cent, in payments made by companies within the Oil and Gas Sector; and (ii) significant increase of $6.620 billion, or 21.1 per cent, in payments made by several companies within the Private Sector,” the report stated.
The Auditor General’s Report notes that the tax types that contributed significantly to the positive variance were Companies Income Tax (Private and Public Sector), Personal Income Tax – Pay as You Earn (Net Mortgage Interest Relief Refunds) and Withholding Tax.
Meanwhile, a sum of $56.6 billion in corporate taxes was collected, 30 per cent above the approved estimates. When compared to 2021, the Auditor General said, corporate tax collections increased by $38.3 billion.
“During the year under review, amounts totalling $56.6 billion were received as Corporation Tax and interest and penalties respectively from private and public sector companies. This is equivalent to $13.199 billion, or 30 per cent, above the Approved Estimates. In addition, there was an increase of $38.305 billion when compared to the collections for 2021,” the report stated.
“Further, the collections from Corporation Tax for the year 2022 represented 32.15% of the total revenue collected by Internal Revenue. It was noted by the Authority that the main contributors to these increased collections were payments made by companies within the Oil and Gas Sector and several companies within the Private Sector, such as Wholesale and Retail Trade, Financial and Insurance Activities, and Manufacturing.”
Meanwhile, the report states that $86.2 billion in internal revenue and customs was collected from taxpayers in the oil and gas sector for last year. When it comes to Value Added Tax (VAT) refund payments made during the year 2022, this was $8.627 billion, or 10.12 per cent of the total revenue collected from VAT and Excise Tax.
“There was an increase of $342.517 million when compared to refunds paid in 2021. The Authority processed 881 refund claims to companies/businesses and diplomat registrants. VAT refunds relative to the Oil and Gas Sector is 59.30 per cent, while the large tax payers accounted for 33 per cent of the total VAT refunds paid in 2022,” the report adds.
Meanwhile, the Auditor General’s Report provides a breakdown of revenue collection, including from customs duties, trade and other taxes, fees, fines and licences, though the $31.1 billion estimated to have been collected is slightly less (0.25 per cent) than the $31.069 billion actually paid into the Consolidated Fund.
“This represents a negative variance of 0.25 per cent, equivalent to a net negative of $77.436 million. The total Import Duties collected in the year 2022 amounted to $27.125 billion, or 87.31 per cent of the total revenue collected by Customs, as such, contributing significantly to the total collections for Customs,” the report said.
Import duties collected and paid into the Consolidated Fund were $27.1 billion, while export duties were $84.4 million, stamp duties were $72.6 million, and environmental levies were $2.7 billion.
Meanwhile, GRA explained to the Auditor General in its response that while higher import tax collection had been expected during the budgetary process, collections fell short of monthly estimates for most of the year.
“Shipping delays experienced around the world due to disruptions in the supply/delivery logistics chain and rising fuel costs, all emanating from the COVID- 19 pandemic and exacerbated by the Russia/Ukraine war, all severely impacted import taxes revenue,” GRA further explained. (G3)