Miners pleased with tax breaks, other incentives

Aug 15, 2022 News

Gold and diamond miners meeting with Vice President Bharrat Jagdeo earlier this year

Kaieteur News – The Guyana Gold and Diamond Miners Association (GGDMA) said it is “extremely pleased that the Fiscal Enactment Amendment Bill No. 2 of 2022 was on Monday last approved by the National Assembly, which gives major tax incentives to the sector.

The Bill, which was successfully piloted by Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh, “will certainly give much needed tax relief to all Miners.
This Bill gives legislative effect to the recent commitments made by government to the mining community,” GGDMA said in a release. On May 31, 2022, Vice-President Bharrat Jagdeo had met with GGDMA members at the Arthur Chung Conference Centre, following which the government announced several measures that would be taken to provide relief for miners.

The GGDMA said it welcomes, in particular, the government’s move to reduce the Final Tax on income from gold produced, declared, and sold. “This Tax has been reduced from a maximum of 3.5 percent to a new maximum of 2.5 percent effective June 1, 2022.”

According to the body, the other major development that the Association welcomes is the abolition of the burdensome 10 percent Tributors Tax which miners were subjected to for many years.
“This also takes effect from June 1, 2022. The abolishment of the Tributors Tax will benefit the personnel working within the various mining operations throughout the country as larger disposable incomes will allow them to better support their families during this time of rising prices. Managers and owners of mining operations also welcome this move as it will create a more level playing field for recruitment and retention of quality personnel.”

Additionally, the GGDMA said it welcome the removal of the 14% VAT on Lubricating Oils which was gazetted on July 12, 2022, and will have an immediate positive impact on the mining sector, where heavy equipment is essential.

The association also said it is appreciative of the following incentives granted by the Government of Guyana to the Mining Sector since taking office in August 2020. These being; Removal of Tax and VAT on All-Terrain Vehicles (ATVs), removal of VAT on Machinery and Equipment for mining, removal of VAT on Hinterland Travel, removal of police clearance requirement for miners to transport fuel in their own vehicles, removal of requirement to register and obtain road licenses for mining equipment and the removal of excise tax on fuel.

“The GGDMA is of the view that these measures by the government will assist in reducing the burden of added operational costs and improving varying aspects of miners’ operations. The GGDMA would like to express gratitude to His Excellency Dr. Mohamed Irfaan Ali, Honorable Vice-President Dr. Bharrat Jagdeo, Honorable Senior Minister in the Office of the President with responsibility for Finance Dr. Ashni Singh, Minister of Natural Resources Honorable Vickram Bharrat, and the Government of Guyana for keeping their promises and commitment to the Mining Sector. We value the partnership with our government as we seek to ensure the continued viability of the mining sector,” the statement concluded.

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