Miners to begin receiving tax concessions on fuel, equipment
Finance Minister Winston Jordan presenting the signed agreement to GGDMA President, Terrence Adams
Finance Minister Winston Jordan presenting the signed agreement to GGDMA President, Terrence Adams

 

IN keeping with a promise to alleviate challenges facing the mining industry, Government has, through the Guyana Geology and Mines Commission (GGMC) and the Guyana Energy Agency (GEA), signed an agreement with the Guyana Gold and Diamond Miners Association (GGDMA) that effectively paves the way for small- and medium-scale miners to benefit from tax reductions on fuel and equipment.

Small- and medium scale-miners will benefit from duty-free concessions on imported equipment, and profit from a tax reduction on fuel by 30%, from a high of 50%. It therefore means that miners are now required to pay only 10% tax on fuel purchased.

At a simple signing ceremony which took place at the Finance Ministry on Friday, October 2, Finance Minister Winston Jordon said the agreement stemmed from a pledge made by the APNU+AFC coalition in its 2015 manifesto under its 100-day action plan.

After defeating the People’s Progressive Party/Civic (PPP/C) in the May 11 Elections, the coalition had, in its budget presentation, listed tax exemptions on fuel and equipment as a budgetary measure to bring relief to the people, in keeping with its promise.

“This is a small and positive step, because it represents the given effect to a promise made by the Government,” Minister Jordan said, as he noted that the step also indicated Government’s willingness to listen and, where appropriate, offer assistance to sectors that are experiencing difficulties as a result to domestic and/or international conditions.

Addressing the issue of large-scale gold smuggling, which continues to eat away at the country’s economic fabric, Minister Jordan said that although former GGDMA President Patrick Harding would have refuted claims that small- and medium-scale miners are engaged in this illegal activity, it is still a major concern, especially if approximately 15,000 ounces of gold are smuggled out of the country on a monthly basis.

He stressed that major damage is being done to the country’s economy because of this loss of much-needed revenue, which can aid in infrastructural development of the country.

“(Do) you know how many schools we could have built with those royalties and taxes? This is not something that anybody can countenance, much less this government. So we ask, in return, that operators in the sector see to it that they do their corporate responsibility and pay their relevant royalties. Make the relevant declarations and pay the relevant royalties!” Minister Jordan said as he pleaded with miners.

The agreement was signed by GEA Chief Executive Officer (CEO) Dr Mahender Sharma; GGDMA President, Terrence Adams; Mr Patrick Harding and the Finance Minister. Guyana Revenue Authority (GRA) Deputy Commissioner General (ag) Ingrid Griffith signed as a witness to the agreement.

This is the second such concession from which small- and medium-scale miners are benefiting for the year. In January, the then Ministry of Natural Resources and the Environment had offered miners a tariff waiver of 10% on diesel fuel imported by GGDMA Trading Inc. for use only within the mining sector. This is in addition to the fuel importation licence that was granted to the GGDMA Trading Inc. to allow for the cheaper importation of fuel. The former Government had also approved waiver of tariffs and duties on equipment and spares.

 

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