In 2022, Guyana’s oil and gas sector played a pivotal role in revenue generation, contributing a substantial $86.207 billion. This is according to the Auditor General’s report which noted,”This impressive figure underscores the sector’s significant impact on the Authority’s (Guyana Revenue Authority’s) overall revenue.”
The contributions were detailed, with $80.711 billion from internal revenue and $5.496 billion from customs, constituting 28.6% of GRA’s gross revenue. Notably, contractual tax exemptions for the sector reached a staggering $108.275 billion.
VAT refund applications for oil and gas companies were meticulously examined, totaling $5.113 billion. The auditor general highlighted, “This process revealed nuances in the utilization of refunds, with twelve companies opting to offset tax liabilities, utilizing $2.263 billion.”
The Authority’s response was affirmative, with the Head, Godfrey Statia stating, “We are in agreement with the reported figures, acknowledging the pivotal role of the oil and gas sector in our fiscal landscape.”
With respect to regular revenue collection, a 2% positive variance was observed, with $292.337 billion collected and paid into the Consolidated Fund by December 31, 2022. “Internal Revenue’s exceptional performance, surpassing estimates by 15.26% and reaching $176.045 billion, is a testament to effective fiscal management,” noted the auditor general’s report.
However, it was also keen to note that Customs, VAT, and Trade Administration recorded negative variances, prompting the auditor general to caution, “While celebrating overall success, it’s crucial to address these shortfalls for sustained fiscal health.”
