The controversy surrounding the proposed tax on energy drinks has deepened, as one major company may be seeking to recover monies it paid over to the Government.
Managing Director of Wisynco, William Mahfood, says since the announcement of the tax last year, the company had been paying over funds to the Government, even after the suspension of the programme, which arose from issues surrounding the definition of "energy drink".
On Beyond The Headlines on Thursday, Mr. Mahfood expressed shock at Wednesday's Post-Cabinet announcement that the Government intended to reintroduce the tax.
He claims that the company may be owed over a hundred million dollars, which it intends to recover.
“All of the tax that the Government has collected since December of last year under now, they will have to reimburse us for all of that tax. They have been collecting tax on the imports, so the fact that they have made the statement that the tax is only now going to be applied, I would like to ask them to reimburse us”
Meanwhile, Mr. Mahfood believes other entities may mount legal challenges, if the Government targets their products based on the revised definition of energy drink.
Information Minister, Daryl Vaz, announced that the modified definition of energy drinks incorporates beverages whose ingredients include herbs, amino acids, and even caffeine.
Mr. Mahfood thinks that if certain products are singled out by the government for taxation, this may be subject to challenge.
“If I made a product that I put in there caffeine but I don’t call it an energy drink is it supposed to be taxed? If it is not taxing specific ingredients then it cannot tax certain named products because it would be considered discriminatory and would therefore be illegal” said Mr. Mahfood.
And, the Opposition People's National Party says it's strongly opposed to the method the Government has used to implement taxes on caffeinated beverages.
Opposition Spokesman on Finance, Dr.Peter Phillips said the way the tax has been imposed highlights a continuing pattern of mismanagement of the taxation process and the financial affairs of the country.
While not questioning the need for the tax measures, Dr Phillips said he's questioning how they are imposed.
‘’This tax was announced during the budget, it was removed after protest and now one week after there was a debate on the Supplementary Budget in which the minister said nothing at all, there is a report carried by the Minister of Information that this tax is going to be imposed…..it is certainly not reflective of any good system of management
He said the Opposition will continue to insist on greater levels of Parliamentary accountability. Dr. Phillips also said tax measures should be subject to the consideration of Parliament through the committees on tax measures, which are provided for in Parliament's Standing Orders.
All feeds
