Miners, dealers object as new Gold Board fee kicks in

Sep 08, 2017 News

A $2,500 processing for gold sold has been introduced as of September 1, but miners and dealers alike are unhappy with what they say is the latest burden on the industry.
This week, dealers received copies of the notice of the fee from the Guyana Gold Board which they have to display prominently.
The Gold Board explained that the fee must be charged on purchases of every ounce of gold or part thereof, with effect from September 1, 2017.
It was announced earlier this year at $4,000 to help defray Gold Board’s expenses in processing.
However, objections were raised by stakeholders, and it was lowered to $2,500.
“The Guyana Gold Board requests that the said notice be displayed in your organization in a visible manner for the benefit of all customers. Similarly, as a licensed dealer, you are required to collect and remit all processing fees to the Guyana Gold Board, simultaneously with the statutory bi-weekly declarations,” according to a letter from the Board to dealers this week, seen by Kaieteur News.
However, several miners from the Guyana Gold and Diamond Miners Association (GGDMA), as well as representatives of a number of dealers, said that this latest measure will only serve to create more hardship for the industry.
“As you know, this year has been one problem after the other. We had the imposition of taxes that miners have to take from workers…it has doubled. We had to contend with flooding and inaccessible areas. We have to contend with a number of higher fees,” a senior GGDMA official explained.
Miners are set to meet with government shortly to discuss the state of the industry and concessions to help ease the situation.
“For example, the dealers’ fees have increased from $1M to $2M. On every ounce of gold sold at today’s prices, the royalties and taxes are already $18,000-plus per ounce. So now on top of more taxes being faced by miners, we have to charge another $2,500. Who do you think are suffering…the dealers or the miners?”
Miners have been complaining that the Guyana Geology and Mines Commission and other agencies have been collecting royalties, but did little to assist with infrastructure in the hinterland areas where the mines are located.
“We are seeing little spending there. We are seeing little concessions despite what is promised. The fuel tax is up to 50 percent and you can benefit from concessions, but very few miners are eligible under the current situation. These are people who have borrowed heavily to invest and just want help from Government to survive now.”
Gold last year continued to be a mainstay of the economy with its spinoffs and foreign currency earning helping to buoy an economy that had slowed in other sectors.

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