–with planned removal of 10 per cent tributors tax, reduction of final tax to 2.5 per cent, other measures

STAKEHOLDERS in the mining industry are set to benefit from a menu of relief measures valuing roughly $1.9 billion, according to Vice-President Bharrat Jagdeo.

Among those potential measures are the removal of the 10 per cent tributors tax, the reduction of the final tax from 3.5 per cent to 2.5 per cent and the removal of value added tax (VAT) on lubricating oils.

The implementation of those measures would result in immense benefits for stakeholders in the mining industry, which already contributes a large percentage to the country’s Gross Domestic Product (GDP).

Further, those imminent relief measures add to the plethora of initiatives implemented by the government to tackle rising cost of living and reduce the cost of production across various sectors.

“We made some promises in the manifesto and we have accomplished most of these with the exception of one issue… we are very mindful of what we promised and given that, if you look across the board, we are trying to fulfill all of these,” Vice-President Jagdeo said during an engagement with key stakeholders in the mining industry at the Arthur Chung Conference Centre, on Tuesday.

The outstanding promise, however, would be fulfilled with the reduction of the final tax, which will allow the mining industry to retain roughly $1.4 billion.

Further, although the government did not promise to reduce the tributors tax, Vice-President Jagdeo said that authorities decided to consider this initiative in light of the difficulties in collecting the tax.

“We didn’t promise to reduce the Tributors Tax because it was 10 per cent when we were in office, but given what has been argued about the difficulties in collecting it and placing some companies at a competitive disadvantage, where some who collect it have a harder time recruiting labour and given that this will accrue to the benefit to small people, that is the workers, we have decided, also the President has agreed that we will remove it,” he related, adding that it will allow the industry to retain approximately $300 million.

The other measure related to the removal of VAT on lubricating oils, while it would be beneficial to the mining industry, would be an initiative that will benefit industries across the board.
“This is a combined package of about $1.9 billion that will return to the industry… that is what we wanted to do so that we could support the industry,” Jagdeo related.

Although the government will be rolling out relief measures to support the mining industry, the Vice-President tasked stakeholders with having a robust engagement and formulating a comprehensive report that will be presented to Cabinet.

The engagement would surround all matters that deal with the Guyana Geology and Mines Commission (GGMC). And included in the report must be information on what the government could do institutionally to enhance the systems within the mining industry.

Vice-President Jagdeo said: “I want to see a report as to what we can do institutionally, what we need to reform; if it’s just institutional changes, structural changes, personnel changes and how we constantly keep monitoring the people that we deploy to discharge the agency’s responsibilities that they do so in an uncorrupt way or in a fair way.”

He noted that, collaboratively, the mining community and government, through the responsible agencies, have to develop mechanisms that would safeguard those persons who are holders of mining permits, while at the same time ensuring that small miners are provided with equal opportunities to enable their growth in the industry.

“We are overloaded with grievances… we are hoping to address systemic issues because those would deliver results we are trying to achieve. We have to find a fair way of safeguarding people with mining permits and ensuring there is more land and opportunities for small miners… they must feel as though they are an important part of the sector and they are treated fairly,” stated Vice-President Jagdeo.

From the government’s end, a tangible measure that would benefit every stakeholder is the planned investment of $2.4 billion on the upgrade of roads in mining areas
Aside from sector-specific measures, the government, since being elected to office, has introduced several measures to put more disposable income in the pockets of Guyanese. From the onset, Value Added Tax (VAT) was removed from water and electricity, a burdensome measure placed on the backs of Guyanese.

There has also been the constant increase in old-age pension and public assistance which, in 2022, put $2.3 billion and $432 million into the pockets of Guyanese.

Additionally, the PPP/C Government reinstated the ‘Because we Care’ cash grant and school uniform cash grant which stands at $30,000 per child in both public and private schools.

Just recently it was announced that every household in the hinterland will receives a $25, 000 one-off cash grant and farmers would receive $1 billion in fertiliser support. These two groups were severely affected by the rise in cost of living.