Gov’t announces close to $2B in relief for mining community
– Vice President meets with GGDMA miners
In yet another of a series of government interventions geared towards providing relief in light of the rise in cost of living and cost of production, and in fulfillment of the PPP/C manifesto promise, Vice President Bharrat Jagdeo today announced several measures that will benefit the mining community.
Dr. Jagdeo met with members of the Guyana Gold and Diamond Miners Association (GGDMA) at the Arthur Chung Conference Centre, Liliendaal.
The measures include:
- $2.4B to be spent on upgrading roads in mining areas
- Reduction of final tax from 3.5 percent to 2.5 percent. This is equivalent to $1.4B returning to the industry
- Removal of Value Added Tax (VAT) on Lubricating Oils. In addition to the benefits to the mining industry, this will have an impact on almost all of the productive sectors of the country.
- Removal of the 10 percent Tributors Tax. This will benefit thousands of workers in the industry and will result in about $300 million being returned to them.
Dr. Jagdeo noted that, “We didn’t promise to reduce the Tributors Tax because it was 10 percent 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.”
These measures represent a total of $1.9 billion in returns to the industry overall and were welcomed by those in attendance.
The Vice President said government is mindful of all the promises made and is working to achieve them even in the second year in office.
“This is what we wanted to do, so that we could support the industry” the VP noted.
Government announced that $5 billion has been allocated in budget 2022 to cushion the effects of the rising cost of living, which is due in part to constant rise in oil prices on the world market and which affects every aspect of life.
Since taking office, government 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.
The Vice President continues to meet with citizens across the country to listen to and address the concerns.