By Svetlana Marshall
AS small and medium scale miners struggle to keep their heads above rough waters, their representative, the Guyana Gold and Diamond Miners Association (GGDMA) has approached government requesting a period of amnesty to assist those who have failed to pay up their taxes. Miners are required to pay property tax, tributors’ tax and withholding tax, as well as maintain a registry of the names, addresses and Tax Payers Identification Numbers (TIN) of all employees. But many do not pay tributors’ tax, which is set at 10 per cent of their employees’ salaries.
As a result, they are unable to benefit from the concessions granted by government.
At its statutory meeting yesterday, GGMDA President Terrence Adams, Vice President Andron Alphonso and Executive Secretary Tony Shields told scores of members that Finance Minister Winston Jordan has been written to on the matter.
BEING TAX COMPLIANT
“The situation is that you got to be tax compliant and not a lot of miners in the industry are tax compliant. So we are advocating for miners to become tax compliant but we also want to meet with Minister Jordan to talk about an amnesty for those miners who are not tax compliant,” the GGMDA Vice President explained to the media minutes after the meeting ended at the association’s North Road headquarters.
Currently, the association, Alphonso said, is awaiting a response from the Finance Minister. “We are opened to discussion, we want to see what the minister would suggest and we will work with it.”
At the meeting, miners were heard encouraging their colleagues that if in default they must step forward and table proposals that would result in an amicable solution. In response, others shouted from across the room “Amnesty! Amnesty!, give us Amnesty!”
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.
Mining equipment listed for exemption are ATVs, rock-drilling or earth-boring tools, including jack hammers, tubes, pipes and hoses of vulcanised 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 vehicles 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 motorcar every five years, with maximum cylinder capacity of 2500cc. Category B is 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 a 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.