Miners in ‘better mood’ with tax reductions in the industry

DPI, GUYANA, Tuesday, November 28, 2017

The leading mining associations are ecstatic that the government has taken note of their advocacy to reverse tax measures that were introduced from the previous national budget.

The Guyana Gold and Diamond Miners Association’s (GGDMA) Administrative Manager, Avalon Jagnandan, told the Department of Public Information (DPI) reducing the tributor’s tax removes a great burden from miners.

“We’re very happy that the administration has recognised the valuable contribution of the sector to the economy over the years and we were very pleased with the various concessions that the industry has received in the 2018 budget.”

Yesterday during his presentation of the 2018 National Budget, Minister of Finance Winston Jordan announced that the tributors tax will be reduced to 10 percent from 20 percent.

The Minister also noted that the two percent of gross proceeds will be replaced with a sliding scale percentage. President of the Guyana Women Miners Association, Urica Primus, said this new measure encourages increased reporting among miners.

“They (miners) have no objections to paying it in one lump sum but in regards to all of the additional work that had to be done especially with the lack of education on how it had to be done that would be taken off with the sliding scale,” Primus said.

The GGDMA, GWMA and the National Syndicate body had been lobbying the Ministers of Finance and Natural Resources for changes to the tax regime for the industry since they were introduced in the 2017 budget.

Meanwhile, Primus noted that the amnesty being offered to delinquent taxpayers also encourages compliance with the law.  “For us, it seems as though the government is considerate of our situation and actually is making a way for us to become compliant and work within the laws and regulations of the country,” she said.

These new measures bode for better performance in the industry come 2018, Jagnandan noted. “It’s very motivating it’s very encouraging. Matter of fact a lot of miners were frustrated but with these positive measures miners are in a better mood,” he said.

Minister of Natural Resources Raphael Trotman noted these new measures, which take effect from January 1, 2018, are reflective of a “good midterm budget”. “It is not meant to excite. It is meant to stabilise and I believe it has delivered in that context as well,” the Minister said.

 

By: Tiffny Rhodius

 

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