Govt. collects $900M in taxes for oil and gas activities

DPI, GUYANA, Tuesday, October 10, 2017

The Ministry of Finance has collected approximately $900M in taxes from “activities connected to oil and gas” for the first half of 2017.

Minister of Finance Winston Jordan.

This was revealed by Minister of Finance Winston Jordan during a press conference held in his Ministry’s boardroom on Monday.  Minister Jordan was responding to questions posed by the media.

Companies in the oil and gas industry have to pay withholding taxes. The tax is paid to the Guyana Revenue Authority (GRA). It is a tax levied on income (interest and dividends) from securities owned by a non- resident.

Minister Jordan noted that the sum “might have been the resolution of one or two issues that were pending with some of the companies”.

These taxes are in addition to the revenues that Guyana is expected to begin collecting when oil production commences in 2020. The government has a production sharing agreement between Exxon and its partners and itself.

Guyana will receive a royalty of two percent on gross earnings and benefit from 50 percent of the profits from the sale of petroleum once production commences in 2020.

Meanwhile, the Finance Minister noted that the Sovereign Wealth Fund (SWF) will be available for public consultation early next year. He noted that his Ministry is currently reviewing comments from partners before it is submitted to the Commonwealth consultant, who helped in the initial drafting of the legislation for the establishment of the SWF.

 

By: Tiffny Rhodius

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