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Effects of used tyre restriction will kick in until next year- GRA

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The Guyana Revenue Authority (GRA) has had reason to fine 11 containers of used tyres following the commencement on the restriction on the importation of the item.

Commissioner-General of the GRA, Godfrey Statia

According to Commissioner General of the GRA, Godfrey Statia, prior to April 01, when the restriction came into force, persons rushed to import a bulk of used tyres and the Authority fined the containers which arrived late at a cost of $600 per tyre.

However, he noted that as a result of the huge numbers imported, the full effect of the new measure may not be seen until the New Year.

“As far as I could see, you would see a reduction of revenue, probably until the New Year because the guys have restocked and brought in as much used tyres as they could, so you will not see any effect on the revenue or any effect of the ban, until probably next year,” Statia told media operatives at a recent Press Conference.

Following Government’s announcement of the restriction in this year’s National Budget, several drivers, the Minibus Union and business persons were outraged. A Guyana Used Tyre Association was even formed to protest the move.

According to the concerned citizens, majority of the vehicles on the road uses secondhand tyres since they are affordable. At the moment it cost $3,500 t0 $4,000 for a used tyre compared to a new tyre which costs $15,000 to $21,000 depending on the brand, the stakeholders said.

They also argued that the fee for public transportation will be increased while many persons will be forced out of business.

The current restriction excludes heavy-duty vehicles including trucks, lorries, vehicles used in the agricultural and industrial sector and special purpose vehicles.

Effective June 1, 2017, persons importing vehicles with used tyres including the spare, which do not conform to the stipulated standards set out following the recently amended Laws will be required to pay fines for each tyre not in conformity. The standard set for used tyres to be allowed (once they are imported with the vehicle) is no less than 6mm in measurement.

Importers of used tyres on vehicles not in conformity with the 6 mm and over standard will be fined as follows for each tyre:

CATEGORIES FINE (G$)
Motor cars $10,000
Vans $10,000
Mini-buses $10,000
SUV $15,000
Pickup $15,000

These fines are required to be paid before the vehicles are released by Customs.

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