Miners Pleased With Major Tax Incentives For Mining Sector

The Guyana Gold and Diamond Miners Association (GGDMA) hails Tuesday’s consultations with Vice-President Bharrat Jagdeo as a major success and compliments the government for keeping its campaign promises.
The GGDMA welcomes, in particular, the government’s move to reduce the Final Taxon income from gold produced, declared, and sold. Currently, the tax is 3.5 percent; however, it will be reduced to 2.5 percent.
The abolishment of this 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 welcome this move as it will create a more level playing field for recruitment and retention of quality personnel.

In totality, these measures will result in approximately $1.9 billion returning to the industry, which will be utilized to reduce the burden of added operational costs and also to improve varying aspects of miners’ operations.
Additionally, the removal of the 14% VAT on Lubricating Oils will have an immediate positive impact not just on the mining sector, but all other sectors, such as construction and agriculture, where heavy equipment is essential. The GGDMA also raised several issues, including the need for reform at the Guyana Geology and Miners Commission (GGMC)and closer collaboration between the Association and the Ministry of Natural Resources. The Vice-President gave the assurance that those would be addressed. Government also expressed a willingness to encourage better relations between miners and the local banking sector to potentially overcome hurdles faced regarding access to financing.
Meanwhile, the Association is also pleased with the government’s announcement of the $2.4 billion to be spent upgrading roads in mining areas. In addition, the government has also committed to revisiting locations where the roads would be constructed so that the road development is aligned with the needs of the mining industry. New roads and upgraded roads will provide key linkages to mining areas allowing for ease of access and reduction in transportation costs.
We value the partnership with the government as we seek to ensure the continuing viability of the mining sector at the small, medium and large scales.