Used tyre dealers urge review of ban for 2018 budget

…as association unveils plan to resume street protests

In the wake of a meeting with Government officials, the Guyana Used Tyres Association (GUTA) is urging the Government to announce a review of the controversial ban in its budget. And it is prepared to protest for this measure to be included.
According to Vice President of the GUTA, Mustaak Mohamed, a meeting was recently held with Business Minister Dominic Gaskin, during which the minister emphasised protecting the environment in explaining the Government’s stance.
“But you have to think about the poorer class people in the country. We are asking them, for the 2018 budget, to review the restriction on used tyres; because they are reviewing the sugar estates, they are reviewing the VAT on private schools, why they can’t review the used tyres? So (we will) go and protest,” he related in an interview on Friday.
Mohammed also revealed that a protest is being planned for this month end. It would be the latest in a number of protests that followed Government’s announced restriction on the importation of used tyres, effective from April 1, 2017.
The used-tyre industry reportedly provides employment for approximately 5,000 persons, and contributes in excess of $100 million in revenue. The GUTA has consistently stressed that as many as 5,000 persons are at risk of becoming jobless if the ban on used tyres is left in place.
In April 2016, hundreds of concerned stakeholders had signed a petition to persuade Government to rescind its decision to ban the importation of used tyres into the country, but the measure was allowed to move forward.
In explaining the new measure, the Guyana Revenue Authority (GRA) had indicated that the restriction applies to used tyres on motor vehicles including motor cars, vans, sport utility vehicles (SUVs), pick-ups, buses, and other similar vehicles.
As it relates to tyres imported separately from motor vehicles, only new tyres would be allowed into the country. When the used tyres are presented with the vehicles, they can be allowed entry with the vehicles once they have a minimum tyre depth of 6mm.
As if cognizant of the unpopularity of the move, GRA had pointed out that Customs duties on new tyres have been reduced from 30 per cent to 15 per cent, while the VAT has been reduced from 16 per cent to 14 per cent. This measure took effect from February 1, 2017 and is in keeping with the promotion of a green economy and the protection of the environment.
After the initial phase-in period, importers of used tyres that are on vehicles when they do not adhere to the stipulated standards will be fined $10,000 (car, van, minibus) and $15,000 (pickup and SUV) per tyre, inclusive of spare not in conformity with the specifications.
The restriction does not apply to tyres for trucks, lorries, vehicles used in the agricultural and industrial sectors, and special purpose vehicles.