Guyana must comply with CCJ’s ruling on the “environmental” tax

Introduction
On May 8, the Caribbean Court of Justice handed down a decision in a case against Guyana brought by a Surinamese manufacturing company Rudisa Beverages & Juices N.V. and its Guyana subsidiary Caribbean International Distributors Inc. In essence the two companies were claiming a refund of what is called under the Guyana’s Customs Act an environmental tax of $10 on the importation of non-returnable beverage containers. The two companies asked the regional court which is the protector of the Revised Treaty of Chagauramas (RTC) among other things, to order Guyana to refund to them the sum of US$6,047,244.47 paid by them to the GRA up to 24th October 2013 and any further amounts paid since that date.

After submissions and arguments which began in June last year, the Court:

A) Declared that the collection of the environmental tax in relation to goods of CARICOM origin is incompatible with the RTC; and

B) Ordered Guyana to:

i) Immediately cease the collection of environmental tax on imported non-returnable beverage containers;

ii) Pay to CIDI the sum of US$6,047,244.47 together with such further sums paid by them from 25th October 2013 to the date of this judgement;

iii) Pay interest on the sums payable by this judgement at the rate of 4% per annum from the date of the judgement; and

iv) Pay the costs of these proceedings to be taxed if not agreed.
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