ALTHOUGH government has granted concessions to small- and medium-scale miners in regard to fuel and equipment tax, some miners are concerned about qualifying for same.The Guyana Gold and Diamond Miners Association (GGDMA), on the other hand, has called on all miners to “change the culture” of being non-compliant with tax regulations.

Speaking at a special meeting of miners to discuss the new mining industry concessions, President of the GGDMA, Terrence Adams, urged all miners to be compliant with the laws of Guyana. Adams’s call came following concerns raised about qualifications of some small and medium scale miners who are not tax-compliant.

“We must change this culture…it is important…we must start somewhere,” Adams said.

Miners are required to pay property tax, tributors’ tax, withholding tax, as well as maintain a registry of the names, addresses and Tax Payers Identification Numbers (TIN) of all employees. Announcement of this criteria was met with widespread concern, but GGDMA’s Vice President, Andron Alphonso, said, “We want every miner to benefit from the concession…if there are persons here who are not complaint, please don’t feel afraid to come and talk to myself and Mr. Adams.

“These concessions are for you, and we want people to be eligible to get it; and it is for the entire industry, so we want every single person sitting here to be eligible for these…and if you are not right now at the level where you feel you are compliant, please feel free to talk to us; we have options for you.”

Interested miners were given forms to provide relevant information that would be submitted to the GGDMA, Guyana Geology and Mines Commission (GGMC), and the Guyana Revenue Authority (GRA). This information would expedite the pre-qualification process.

GGDMA President Terrence Adams told scores of miners gathered at the GGDMA North Road office that negotiations are ongoing, and once all goes according to plan, the GGDMA would be in a better position to have an extension of the tax concessions granted by government earlier this month.

He explained that, in the case of the fuel concession, small- and medium-scale miners would be required to pay government only 10 per cent. “This puts us on a scale with companies like the Guyana GoldFields,” Adams said proudly.

Fuel concession has been reduced from 50 per cent to 10 per cent. However, this has been granted for only six months. According to the agreement with the government, tax exemptions on the acquisition of diesel fuel to be utilised in the mining sector shall be granted to beneficiaries for an initial period of six months, but miners are required to maintain proper records of receipt, distribution and usage of fuel.

“Diesel fuel must be used solely in the mining sector, and all miners must be tax-compliant in order to benefit from the partial exemptions,” the agreement stipulates.

Miners, Adams said, will be able to save money on fuel that can be used for other purposes. “It is up to you whether you want to comply,” he said.

GGDMA executive Charles DaSilva also urged fellow miners to be compliant. “Come to the Association…take advantage of this opportunity…the Association needs membership, finance…so we can talk to the government on your behalf”.

He explained that while “this is not the end, we have been battling for a long time, and going along with the government for many years; you can clearly see we are making process.

“We must comply, because you get nothing for nothing. You got to comply and you got to toe the line, and this is how we are going to make progress,” added Da Silva.

He noted that things won’t change overtime, but without compliance, things in the industry that are now causing struggle will not get better.

“You have to comply; you have to get all your things in order. This is only fair, because the government has already catered for X amount of duty on fuel… they have given us a relief because of the low gold price at the moment, and we are happy for this.”

Miners were urged to talk to the Association about their issues, and guidance would be provided.

NOT REALISTIC
Many of the miners present at the meeting last evening opined that the conditions of the agreement made between government and the GGDMA are not “realistic”. One miner, Mr. Marcus, said: “Most of these measures are too stringent.” He said that dredge operators are faced with many challenges while working in the interior.

He said false information is provided to employers by miners on one hand, while others do not have documentation, including birth certificates, Identification cards, and TIN certificate.

Questions of government being able to provide amnesty to those non-compliant miners were raised, but Adams said Amnesty has been raised at the various meetings held with government, but no decision has been taken on that yet. “We only signed the agreement on October 2, 2015, thirteen days ago. We are working on it,” he assured miners.

Meanwhile, former president of the GGDMA, Patrick Harding, said: “This is just the beginning” of the good things to come for miners. He called on miners to “have faith in the Association.”

The executive of the Association assured the miners that the administration is working to “help the industry”. He said the “door is open, and negotiations will continue.”

Mining equipment listed for exemption are ATVs; rock-drilling or earth-boring tools, including jack hammers, tubes, pipes and hoses of vulcanized rubber fittings; other carpet and textile floor coverings; articulated link chain and parts; pumps; impellers; pump housings; shafts; marine propulsion engines and other engines.

Three categories of vehicle have received exemptions: Category A (declarants with 5,000 ounces of gold and above annually) are granted two double-cab pickup every five years, with no limitations regarding engine capacity, year or model; and one motor car every five years, with maximum cylinder capacity of 2500. Category B are granted one double-cab pickup every five years with no limitations regarding engine capacity, year or model. This is offered for declarants between 2000 to 4999 ounces of gold annually.
Category C are offered one single-cab pickup every five years, with no limitation regarding engine capacity, year or model for declarants between 500 and 1999 ounces annually; while declarants under 500 ounces annually do not qualify for tax exemptions on motor vehicle for use in the mining sector.

The mining industry, though the leading foreign exchange earner for years, has been struggling with the falling gold prices on the world market. This year, declarations have dropped by at least 20 per cent. The GGDMA has for years been calling on the administration to assist the industry.

By Ariana Gordon