Opposition Leader calls for repeal of taxes on mining sector

– says tax measures will leave long-term effects on small miners

Leader of the Opposition, Bharrat Jagdeo, is calling for a reversal of the tax measures implemented by the Government on the mining industry, in the wake of a meeting with representatives of the sector.

On Wednesday, the Opposition Leader met with members of the Guyana Gold

and Diamond Miners Association (GGDMA) to hear their concerns. In the wake of that meeting, Jagdeo at a press conference on Thursday called for the Government to revisit its tax policy towards small- and medium-scale miners.

According to Jagdeo, the Government should reverse any oppressive tax it has placed on those involved in the mining sector, if it was truly serious about keeping the sector and the involvement of small- and medium-scale miners viable.

“We have heard from the Minister that gold and small miners are doing extremely well. We had a better understanding, after (the) discussion with the GGDMA, about how these policies affect miners. And because the President has refused to meet with the GGDMA, I don’t think he has a keen understanding of the impact of his Government’s policies on the mining sector,” the Opposition Leader said.

Jagdeo called on Finance Minister Winston Jordan to acknowledge that he made a mistake in implementing “draconian” taxation policies on those involved in the mining sector.

“Namely the removal of the two per cent tax on income. So now these miners will be subjected to the 28 per cent. Also the impact of the policies to tax heavy-duty equipment and the 100 per cent increase in Tributors Tax, they’re all contributing to what I would call the future decline of small mining in Guyana,” Jagdeo related.

He sought to debunk the impression that Guyana’s small- and medium-scale miners were prospering, calling it a mistaken view.

The GGDMA had for some time sought an audience with President David Granger, but to no avail. This is despite threats of protests. In light of this, Jagdeo said a lack of understanding of the plight of the small- and medium-scale miner may have contributed to the present state of affair.

“And so, this mistaken view that miners are making large sums of money, particularly small miners and therefore they must be a target of the Ministry of Finance is a mistaken view. We will continue to call for a reversal of this taxation policy and we hope that the Government will accede to it,” Jagdeo told reporters.

During the three-hour meeting on Wednesday at the GGDMA’s office at North Road, a number of critical issues were raised.

Among the challenges identified was the spike in taxes across the board implemented by the Government; in particular, the increase of the Tributors Tax from 10 to 20 per cent, Value Added Tax on heavy-duty mining equipment and the two per cent Withholding Tax.

In addition, the Association had complained of not being able to benefit from the grant of duty-free concessions on mining equipment, vehicles and fuel, owing to the red tape experienced at the regulatory agencies. The poor state of the roads in the mining areas and other related issues also came up.