Tiana Cole reports that Kaieteur News publisher Glenn Lall’s case to revoke tax exemptions for oil companies under the Production Sharing Agreement (PSA) in the Stabroek Block has been dismissed by High Court Judge Nareshwar Harnanan.
Tax exemptions were granted to oil companies for drilling exploration in the Stabroek Block. Lall’s case argued that the exemptions violated Guyana’s Constitution and would result in a loss of revenue for the country.
However, the High Court judge determined that the tax exemptions were lawful and constitutional and that Lall’s case did not have a reasonable chance of succeeding in court.
The decision is a victory for oil companies operating in the Stabroek Block, which has invested heavily in oil exploration and production in the region. The PSA tax exemptions are important in making these investments financially viable.
However, the decision is also controversial, with some critics arguing that the tax exemptions unfairly benefit foreign oil companies at the expense of Guyana’s economy.
The ruling is expected to have significant implications for the future of the oil industry in Guyana, and it will be interesting to see how the government and other stakeholders respond to the decision.