Erroneous reports on oil sector have to stop

Dear Editor,
Commissioner-General of the Guyana Revenue Authority (GRA), Godfrey Statia issued a statement on June 25th, 2022 in which he clarified that the 2% royalty paid by ExxonMobil and its partners is not recoverable as cost oil.
Mr Statia’s response followed, as one local media house rightfully put it, “a series of erroneous reports in the Kaieteur News on the royalty payment.”
He was very clear in pointing out, “that the 2% Royalty payment currently adds to the Government’s take. Hence the Guyana Government presently receives a total of 14.5% in Royalty and Profit Oil (2% plus 12.5%), and not a total of 14.25% as being reported in some quarters.”
“The parties that constitute the contracting consortium, like other companies in Guyana are subject to the Income Tax Act and are required to file returns, pay taxes and maintain books and records. Royalty is a tax-deductible expense pursuant to Section 16 of the Income Tax Act, Cap. 81:01, when filing corporation tax returns in Guyana,” he further posited.
Having had the facts outlined and the erroneous article repudiated, you would think that the guilty parties would’ve retreated or at least apologize. Instead, they just moved on to another set of outlandish and inaccurate claims.
On a daily basis the nation is treated from one sensationalist, often inaccurate, statement to the next, particularly emanating out of the Kaieteur News, which provides a ready platform for those commonly referred to as The Usual Suspects (TUS) and The Lunatic Fringe (TLF).
This has to stop.
Personal interests should be put aside as the damage being done by these sensationalist and erroneous publications to the country’s image may be far-reaching.

Sincerely Yours,
Andron Pires