To promote the development in the mining sector and to encourage more people to get involved in the industry, we have seen Government offering incentive schemes over the years which have helped miners in many ways. Small and large scale miners have benefited from these incentives and have prospered. Today, when the Government is moving to ensure that mining is done in a sustainable way and that Guyana’s forests are preserved, we see certain sections up in arms, even those who do not belong to the industry. Of course things change over time, we are living in a developing country and for us to develop we must be able to streamline our production lines to make sure that we can do better.
One sector cannot be operated at the detriment of another, and this Government is doing the right thing in ensuring that the interest of every Guyanese is protected. Isn’t that what a Government is supposed to do? Protect the interest of its people and not just one group?
Perhaps, as Government is seeking to ensure proper regulations are implemented in the sector, it should consider revamping the entire industry at the same time. The playing field is uneven, because Government has been putting much resources into the area of mining and has been granting significant incentives and concessions to miners; now that the time has come for miners to work with regulations which will benefit the sector, they cry foul.
To even things up, Government should remove the incentive scheme that miners currently enjoy, like exemption from duty and consumption tax on mining and clearing equipment and outboard engines; a preferential consumption tax rate of 10 percent on aviation fuel; waiver of duty and consumption tax on fuel, machinery and equipment spares and vehicles imported exclusively for large scale mining; and tax holidays. Of course these are in addition to general incentives offered across the board.
Perhaps removing the incentives would offer a more even standing for negotiations.