Excise Tax is a tax on items/goods/products imported that are considered consumables. This tax is charged on the following items:
- Alcoholic Beverages;
- Tobacco Products;
- Petroleum Products;
- Motor Vehicles
The tax is applied at different rates when the item/good/product is;
- Imported and/or warehouse.
- Removed from a warehouse.
- Manufactured and sold in Guyana.
For Imports, Excise Tax is applied to the total value of the item/good/product upon entry to Guyana. The total value is inclusive of freight insurance, Customs duties, fees, and other charges. For goods manufactured in Guyana, Excise Tax is applied to its selling price, minus VAT.
• Petroleum is taxed at different rates depending on the product, that is, gasoline, diesel, oil, and gas.
• Alcohol is taxed differently based on the strength of the alcoholic content, that is, Excise Tax on Spirituous Liquor will be higher than beer.
• Tobacco is taxed at a fixed amount according to the sticks (tobacco/cigarette sticks)
• The Excise Tax on motor vehicles depends on their age, engine capacity, type, and usage.
NOTE: Goods that attract Excise Tax will also be subject to VAT. An importer must pay the tax before the goods are cleared for use within Guyana. If goods are imported and not warehoused, payment to the GRA must be made upon importation. Where goods are imported, warehoused, and later removed from the warehouse, payment must be made on removal from the warehouse.
Any person who carries on business as an importer of excisable goods, or who is a Guyana-based manufacturer of excisable goods that attract Excise Tax must be registered with the GRA. Before registering, a Taxpayer Identification Number (TIN) must be obtained from the GRA.
EXCISE TAX AND THE IMPORTER
An importer of excisable goods must pay the tax before the goods are cleared for use within Guyana. Where goods are imported and not warehoused, payment to the GRA must be made upon importation. Where goods are imported, warehoused, and later removed from the warehouse, payment must be made on removal from the warehouse.
In some instances the Commissioner General may allow goods to be imported without payment of tax if satisfied that the goods are for temporary use, or will be exported within three months, but subject to the payment of deposit or security.
EXCISE TAX AND THE MANUFACTURER
Where taxable goods are manufactured in Guyana and removed from a warehouse, or manufactured and sold in Guyana, payment of the tax to the GRA must be made no later than fifteen days after the end of the month during which they were removed or sold.
If a manufacturer cannot account for any taxable goods, the GRA will rule that those goods have been sold or removed from a warehouse or made available for consumption in Guyana during the month that the good is missing.
There are no Excise Tax on exported goods.
EXCISE TAX RETURNS
Registered importers and manufacturers must complete and submit an accurate monthly Excise Tax return to the GRA no later than fifteen (15) days after the end of each month.
A refund of Excise Tax may be made if. –
- The tax paid is more than the amount due, or
- The excisable imported goods are subsequently exported, or put on a foreign-going ship or aircraft.