THE Guyana Gold and Diamond Miners Association (GGDMA) on Thursday refuted claims that mining is one of the industries that least contribute to the tax system.The GGDMA noted that while there may be non-compliance issues in the industry, the Guyana Revenue Authority (GRA) has to do more to educate miners about their obligations to the state.

“There is also a need on the part of GRA to do much more to sensitise the miners about what is their obligation to the state, and how these contributions can be made. We recognize the need for efficient revenue collection, and will support efforts to ensure that the state receives its direct contributions,” the GGDMA said in a statement to the media.

At a press briefing in January, GRA Board Chairman Rawle Lucas had said that, based on an analysis of tax payments by economic sectors, mimicking the national accounting framework, it was discovered that the Services sector contributed the most to tax revenue. “Services are the largest sector, and account for 66% of tax revenue. Manufacturing is the smallest (contributor), and accounts for 30% of tax revenues. It stands to reason that we have tax problems in agriculture, fisheries and forestry sectors, as well as (in the) mining and quarrying sector,” Lucas had remarked.

The GGDMA noted that it has urged all of its members and miners across the board to make every effort to become fully tax compliant. The GGDMA said it has written to the head of the Guyana Revenue Authority (GRA) seeking clarification, and noted that Finance Minister Winston Jordan, in his 2016 budget presentation, had stressed that the valiant efforts of miners ought to be applauded, as it is the gold industry that would continue to drive growth in the economy.

“The GGDMA agrees with this statement from the Hon. Minister, and wishes to reiterate that the direct and indirect contributions of gold and diamond mining to the Guyanese economy (are) among the largest of any industry. Unlike the manufacturing and services sectors that directly contribute to the state through a single stream via GRA, mining contributes through multiple streams. In addition to payments of taxes to GRA, miners also contribute directly via payments to GGMC and the Guyana Gold Board; the value of these contributions amounts to in excess of 300% of what is paid to GRA,” the statement said.

The GGDMA has stressed that the mining industry is “undisputedly a colossal driving force behind the entire economy of Guyana”, emphasizing that the industry fuels job creation and disposable income that have the trickledown supporting effect.

“If mining was to be removed from that equation, the ensuing reduction of disposable income and, as a consequence, demand for goods and services, would have such a damning impact, particularly on sectors such as services, that their direct contribution to the state may dwindle to less than 50% of present value”, the GGDMA has said.

The GGDMA also notes that the mining industry is the most significant contributor to foreign currency earnings of the country, without which the cost of doing business in all the other sectors would increase. “It must be noted also that the industry serves a very important social role as a poverty alleviator, where many persons are given a legal means to earn an honest dollar in support of their families; not to mention the industry is the largest employer in hinterland communities.”

CONCESSIONS
The GGDMA has called out the Guyana Geology and Mines Commission (GGMC) for delaying the granting of duty-free concessions. According to the GGDMA, the GRA has worked with it in identifying tax compliant miners who are eligible for duty-free concessions on fuel, spares and vehicles.

“This list of compliant names has been submitted to GGMC over a couple of months now, and yet, as of today, neither GRA nor GGDMA has received a reply from GGMC as to what is taking them so long to finalize their verification exercise,” a GGDMA statement has said.

The GGDMA believes that miners’ inability to access the concessions “is a direct consequence of GGMC’s negligence.” The GGDMA said it expected the GGMC — given its position as the regulatory body in charge of the mining industry, its knowledge regarding the hardships miners face, and the importance of mining to the country — to act expeditiously. Given the alleged slothfulness of the GGMC, the Association has issued a call on Minister of Natural Resources, Hon. Raphael Trotman, “to intervene in this matter as the period granted for the concessions has almost expired and no miner has benefited from the concessions”.

“The GGDMA wishes to remind all miners to sell their gold only to authorized dealers or the Guyana Gold Board. Additionally, the GGDMA is urging miners to ensure that they are tax compliant. Miners can contact the GGDMA for assistance in this area”, the GGDMA statement said.