…appeal for meeting with President

By Zena Henry
Members of the local mining industry are resisting government’s “tough” mining taxes with an ultimatum to meet President David Granger within two weeks, or face immediate protest action. Miners say they have been expressing their concerns for a number of weeks but have gained no meaningful outcome.

In the first step toward possible demonstrations, the Guyana Gold and Diamond Miners Association (GGDMA) and Guyana Women Miners Organisation (GWMA) issued a public notice on Tuesday, extending an invitation to the Head of State, who they believe will be more accommodating to their plight. The miners claim that previous meetings with other officials were “hijacked” thus causing their concerns to remain outstanding.

The associations have effected their first full page advertisement in local newspapers also informing association members to mobilise for protest action if their concerns are not met. Administrative Manager of the GGDMA Colin Sparman told the Guyana Chronicle that the tax matters are of deep concern to all miners and must be addressed by the President. He said the mining industry has contributed a lot to the country before noting how the new tax measures will “squeeze the life out of the industry.”

The miners expressed discontent, stating that after 30 years of operating under the established tax code, they as the main stakeholders should have had some input as to the new tax measures that directly affect them and their families. “We will not accede to conditions imposed upon the industry where there has not even been the courtesy of prior consultation,” the miners insisted.

They described a previous meeting with the Minister of Finance as being “hijacked” while another with the head of the Guyana Revenue Authority (GRA), still left members of the mining association uneasy. Some of the measures worrying the miners include increased tributors tax from 10 to 20 percent, filing yearly income tax plus the payment of two percent tax at source, and VAT exemption on heavy-duty vehicles among others. The miners are also seeking positive feedback on accessing existing mining concessions for small miners and improved infrastructure for better mobility and transport cost reduction.

Sparman told this newspaper that miners will incur increased operating cost that will prove devastating if some of these taxes are accepted. He pointed out for example that the recently implemented 14percent VAT on domestic flights is one likely to have devastating effects on the industry. According to him, cargo to the interior is charged per pound. “That means prices will increase. If you paid $500 for a small bottle of water in the interior, you will now have to pay $1000.” Sparman continued that there are some items that must be flown into the interior and there are locations that must be reached via air. “You will then have people trying to recover their money; that means things will increase.”

Sparman also pointed out the effect he believes the new tax measures will have on jobs. He said that mining is one job where a police clearance is not always required and thus allows persons with a bad history to have a fresh start. He said some persons venture into the interior to stay out of trouble while others, not so intellectually capable, seek to make it within the mineral business. Sparman said that the associations are hoping that the President will take time out of his busy schedule to meet with the miners and thus avoid their retaliation.

In the meantime, members of the two mining associations have been asked to “join in solidarity” to ensure their collective voices are heard. They were told to wear yellow and walk with their yellow flags. They were told further to, “be prepared to mobilise to take actions that may become necessary to ensure our collective livelihood and future. Miners have also threatened to stop mining and reduce mineral declaration if their concerns are not met.