The Guyana Manufacturing and Services Association (GMSA) is pushing back against the Guyana Government’s move to implement import taxes and review of the list of raw materials which are not eligible for tax exemptions under the revised Treaty of Chaguaramas.

The Manufacturing Association is proposing to to work closely with the Guyana Revenue Authority (GRA) and the Ministry of Foreign Affairs to discuss the impact of the government’s calls for a suspension of previously unimplemented import duties.

GMSA President Eon Caesar met with all members of the Association as well as relevant stakeholders including the GRA and the Ministry of Foreign Affairs on Thursday to find a solution to concerns regarding the implementation of the import taxes. The list of non eligible raw materials has been in existence for over 40 years.

“The GMSA members are concerned about the significant consequences which will be faced by manufacturers and their customers should these import taxes be imposed”, the GMSA President said.

He explained that it is imperative that manufacturers be cognizant of the fact that this requirement would result in higher prices for products and services.

“This decision has a direct impact on the end users as products and services which they normally utilize would become more expensive. Another impact is the fact that while local manufacturers would be required to pay more for raw materials and as a consequence, increase the costs for their products, foreign competitors can continue to charge current rates for their products. This is a significant issue for the local manufacturing sector as foreign competitors would be able to offer products at cheaper prices creating an uneven playing field”, he added.

The GMSA President indicated that the association has engaged the services of the GRA and the Ministry of Foreign Affairs to commence the process of applying for a suspension of the import taxes.

The GMSA President further stated that the Association is highly appreciative of the support of the GRA and the Ministry of Foreign Affairs.

“The fact that both entities have representatives at this very important gathering speaks volumes about the beneficial relationship with the GMSA,’ stated President Caesar, ‘I wish to applaud the work of the GRA and the Ministry of Foreign Affairs in providing a wealth of support to the Association on this matter. We will continue to work closely with both entities for a speedy resolution.”

He concluded that the entity will continue to work aggressively for a resolution which will benefit every member of the association.

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