Several imported equipment and supplies required for petroleum operations in Guyana are duty-free – GRA

Must Read

OilNOW
OilNOW
OilNOW is an online-based Information and Resource Centre
- ADVERTISEMENT -

The Guyana Revenue Authority said on Friday that based on the Petroleum Agreement between the Government and ExxonMobil affiliate Esso Exploration and Production Guyana Limited, contractors and sub-contractors are permitted to import a number of equipment and supplies duty-free for use in petroleum operations, as stated in Annex D of the petroleum agreement.

“The Contractor,  and the Sub-Contractors engaged in Petroleum Operations shall be permitted to import, free of duty, VAT or all or any other duties, taxes, levies or imposts, all equipment and supplies required for Petroleum Operations including but not limited to drillships, platforms, vessels, geophysical tools, communications equipment, explosives, radioactive sources, vehicles, oilfield supplies, lubricants, consumable items (other than foodstuffs or alcoholic beverages or fuel), as well as all items listed on Annex D,” said Godfrey Statia, GRA Commissioner-General.

In keeping with the said clause, the Guyana Revenue Authority advises that the supplies outlined in Annex D whether procured locally or overseas shall be sold to the Contractor (Exxon) in accordance with the said Article 21.1, i.e., free of duty, VAT or all or any other duties, taxes, levies or imposts.

GRA said consequently, suppliers of items to Exxon as listed in Annex D, on which taxes were levied and paid upon import, are advised that a credit shall be given for the said taxes, once proven to the satisfaction of the Commissioner General that such items were indeed sold to Exxon, and taxes were paid upon import.

GRA said it should be noted that foodstuffs, alcoholic beverages and fuel are subject to the appropriate tax, “and will be so taxed regardless of whether the supplier is local or otherwise.”

- Advertisement -
spot_img

Latest News

Dominican Republic can help Guyana bridge gaps, place progress on par with developed world- Pres. Ali

Guyana's President, Dr. Irfaan Ali deemed the Dominican Republic a pivotal ally that can help his country bridge many...

More Articles Like This