Tax regime on mining promotes transparency – Minister Broomes

Mar 02, 2017 News

Junior Minister of Natural Resources, Simona Broomes, yesterday said that the new tax regime on the mining sector is not a means to oppress miners but rather to enhance transparency in the sector.

Junior Natural Resources Minister, Simona Broomes

Broomes said that as it concerns the many miners with whom she has been in contact, they are happy with the measures specifically since concessions would now be offered across the board.
“The syndicates themselves have spoken out and made their voices heard but for the miners I am dealing with are happy because it was recommended to government to use a ceiling of how many ounces of gold you should produce before you are entitled to that concession.
“The smaller miners said that cannot meet them because they cannot afford to get all that amount of gold. So what the government did is to say once you are tax compliant. So it has gone straight across the board.”
She said that as such, the industry will be more transparent as syndicates can now sign on to the same concessions under the same conditions. According to Broomes, small miners have made their appeal and will be given a Compliance to assist them in this regard.
“For the smaller miners, they have said it themselves that they will benefit from it. The tax across the board is not that government wants to impose or to make life difficult for anyone; that is why there is a certain level of consultation.”
To further assist miners, Broomes said that a booklet has been produced and being made available to miners for them to understand the new measures, highlight those which they believe to be burdensome and provide recommendations.
“None of them have responded saying that this or that has affected them. I think the smaller miners are very happy; they are excited to know that they don’t have any bureaucracy to go through this or to go through that. They don’t have to produce this large sum of gold that they were unable to do but now they can benefit just by being tax compliant.”
The GGDMA had on many occasions expressed its contention with the new tax measures to be implemented in the industry. Some miners at GGDMA meetings had even said that the measures would lead to lower gold declarations and at worst miners putting a halt to production.
Under the new tax regime, certain goods and services will attract Value Added Tax; the tributors’ tax would be increased from 10 to 20 percent, and there will be a two percent tax on gross. Added to this, miners will be required to file their income taxes at the end of the year.
The tributors’ tax is taken from the money paid to those hired to work in the mines. The increase in this aspect is of great concern to the GGDMA, since in the past, their members have had difficulty explaining the 10 percent deduction to employees from their earnings.
Additionally, GGDMA members have said that the requirement to keep financial records would pose a problem since a lot of records which will be acceptable by the Guyana Revenue Authority are not easily attainable and in some cases impossible in the ‘bush’.

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