Gold board processing fee reduced to $2500

Jul 19, 2017 News

Following negotiations between the Guyana Gold and Diamond Association (GGDMA), the Guyana Gold Board (GGB) and the Ministry of Natural Resources and the Environment, the processing fee per ounce of gold has been reduced

The processing fee per ounce of gold is now $2500

to $2500.
Last month, the GGB had announced that all miners and dealers would have to pay a processing fee of $4000 on every transaction. The fee was scheduled to become effective on July 1. Prior to this, the processing fee was $1000.
In a letter circulated to the media from the GGDMA yesterday, the reduction was as a result of negotiations between the respective agencies. The $4000 was rejected by the GGDMA and the GGB suggested $3000. This proposal was opposed according to the GGDMA.
Consequently, Minister of Natural Resources and the Environment, Raphael Trotman met with the Chairman of the GGB, Gabriel (GHK) Lall concerning the matter on Tuesday July 4, 2017 at his ministry. Following this meeting, it was proposed that the new fee would be $3000 but this was rejected by the GGDMA, again.
According to the GGDMA, after lengthy negotiations with the Ministry and the GGB whereby it was considered that the fee was not hiked in a long time, it was re-negotiated that there would be an increase of $1000, taking the fee to $2000.
However, the Ministry later informed the GGDMA that the new processing fee will be $2500 per ounce of gold and will come into effect on September 1, 2017.
Presently, miners are required to pay seven per cent comprising of a five per cent tax and two per cent royalty on each ounce of gold sold. The two per cent goes to the GGB and the five per cent goes to the Guyana Revenue Authority (GRA).
Over time, the GGB has been experiencing challenges relating to regulating gold purchases in Guyana. With the introduction of new laws to prevent money laundering, the GGB has been tasked to implement creative ways to increase revenues.
Meanwhile, miners have expressed their unhappiness with the introduction of a new tax system governing the industry. Gold remains the largest foreign currency outperforming all other sectors, including rice and sugar.

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