As part of the overall simplification of the tax structure leading up to the implementation of the Goods and Services Tax (GST), the Government of Anguilla has introduced an International Trade Tax Structure and a Modern Excise Regime. Among the objectives of this regime is to encourage innovation and growth within the manufacturing sector and entrepreneurship. A list of goods referred to as excisable goods, that have the potential to grow the manufacturing sector, are to be found in the first schedule to the Excise Tax Act 2019. These include items such as alcoholic beverages, confectioneries, tobacco products, fuel, tires, incandescent bulbs, blocks, cement, hurricane shutters, vehicles and boats.
The Excise Tax Act 2019 has been enacted and was implemented effective 1st October 2019. The imposition of Excise Tax will be guided by the Excise Tax Act and Regulations. Clearly laid out in the Excise Tax Act are the different circumstances under which the tax is applicable. This Act also stipulates the methods and quantities to be used in the valuation of excisable goods. Further, it states that tax is payable on excisable goods imported into Anguilla and stipulates that the tax on imported goods must be paid to the Comptroller of Customs by the person who imports the goods for home use.
As it relates to the importation of blocks and cement, effective 1st October 2019, all importers of Blocks and Cement are required to apply to the Ministry of Finance, Commerce Unit for a license to import blocks and cement. Importers are required to obtain the license before importing the goods as the license grants permission. The license fee to import Cement and Blocks has been abolished. All fees pertaining to these products are now paid at the Anguilla Customs Department.
The Excise Tax Act demarcates the boundaries regarding the responsibilities for the administration of the Act; the Comptroller of Customs, in respect of international trade and the Comptroller of Inland Revenue in respect of the domestic manufacture and sale of the products. Both entities already work closely together, and this will continue with the implementation of this Modern Excise Regime to ensure efficiency in administration and compliance on the part of taxpayers.
Manufacturers of excisable goods are required to register under the Act with the Comptroller of Inland Revenue. A manufacturer is defined in the Act as a person who carries on or intends to carry on a business of manufacturing excisable goods in Anguilla. They are required to be registered for the purpose of this Act.
According to the Act, a manufacturer who carries on the business of manufacturing excisable goods is required to apply for registration within one month after the commencement of this Act or within 3 months after the commencement of the business, whichever is the later. Upon application by the manufacturer, a warehouse which satisfies the requirements of the Act and Regulations will be approved by the Comptroller of the Inland Revenue for the deposit, keeping, manufacture and securing of excisable goods. A manufacturer who manufactures excisable goods and is required to be registered, in addition to meeting the requirements of the Act and the Regulations, is required to remove excisable goods only from a warehouse that has been approved by the Comptroller of Inland Revenue.
Sensitization meetings will be held with manufacturers of excisable goods who fall under the ambit of the Excise Tax Act to educate them about the legal requirements of the Act and application of the law as it pertains to their manufacturing operations. It is hoped that through these meetings we can foster healthy working relationships to administer this Act effectively.
Copies of the Excise Tax Act 2019 and applicable Regulations can be found on the Government of Anguilla’s website at www.gov.ai. Persons can also contact the Inland Revenue Department at telephone number (264) 497-8334 or email inlandrevenue@gov.ai. Like and follow the Inland Revenue Department on Facebook @AnguillaIRD. For specific queries about Excise Tax, please email GST@gov.ai.
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