MINERS are extremely pleased with the many legislative changes being piloted by the government to give major tax incentives to the mining sector, the Guyana Gold and Diamond Miners Association (GGDMA) said on Saturday.

The latest relief to miners was the passing, on Monday, in the National Assembly, of the Fiscal Enactment Amendment Bill No. 2 of 2022, which was successfully piloted and debated by Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh.

The bill primarily gives legislative effect to the commitments made by government to the mining community during a meeting at the Arthur Chung Conference Centre last May.
“The GGDMA is of the view that these measures by the government will assist in reducing the burden of added operational costs and improving varying aspects of miners’ operations,” the GGDMA said in a statement.

It added “The GGDMA would like to express gratitude to His Excellency, Dr. Mohamed Irfaan Ali; Honourable Vice-President, Dr. Bharrat Jagdeo and Honourable Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh; Minister of Natural Resources Honourable, Vickram Bharrat and the Government of Guyana for keeping their promises and commitment to the mining sector. We value the partnership with our government as we seek to ensure the continued viability of the mining sector.”

The GGDMA welcomed in particular, the government’s move to reduce the Final Tax on income from gold produced, declared and sold. This tax has been reduced from a maximum of 3.5 per cent to a new maximum of 2.5 per cent effective June 1, 2022.

The association also commended the abolition of the 10 per cent Tributor’s Tax; this also takes effect from June 1, 2022.
“The abolishment of the Tributor’s Tax will benefit the personnel working within the various mining operations throughout the country as larger disposable incomes will allow them to better support their families during this time of rising prices,” the statement said.

“Managers and owners of mining operations also welcome this move as it will create a more level playing field for recruitment and retention of quality personnel.”
Under the previous APNU+AFC administration the Tributor’s Tax was increased from 10 to 20 per cent; however under pressure they were forced to later reduce it back to 10 per cent. The removal of the 10 per cent Tributor’s Tax is expected to benefit thousands of workers in the industry, with an estimated $300 million expected to be returned to those who are paying this tax.

Other previous measures geared at bringing relief to the mining sector included the removal of the 14 per cent Value Added Tax (VAT) on lubricating oils, which took effect since July.
“[This] will have an immediate positive impact on the mining sector, where heavy equipment is essential,” the association said.

The most recent measures implemented add to a slew of other previous measures that the government has been incrementally implementing since it took office in 2020.
These other measures include the removal of tax and VAT on All-Terrain Vehicles (ATVs), removal of VAT on machinery and equipment for mining, removal of VAT on hinterland travel and the removal of excise tax on fuel.

In addition to the tax relief, there has also been the removal of certain bureaucratic processes such as the need for a police clearance requirement for miners to transport fuel in their own vehicles and the requirement that miners register and obtain road licences for mining equipment.