Dear Editor,
In 1988 Guymine’s Linden employees benefited for the first time from tax concessions on overtime work. An agreement between the company and the Ministry of Finance stipulated that employees in the bauxite industry who worked excessive overtime hours on specific projects on a weekly basis would only pay taxes on the first 24 hours of overtime work. The remainder would be tax-Free. In other words, an employee, for example, who worked 80 hours in any one week on dragline project, paid taxes on his/her basic 40 hours pay, plus 20 hours overtime work. The additional 20 hours attracted no taxes. Excessive overtime work on certain projects became necessary because of the acute shortage of certain categories of skills.
This information comes from a 1988 in-house magazine, and what we understood from it is that the workers and management of the bauxite company were always in dialogue to arrive at a win- win end result.
This tax-free overtime agreement was further modified to enable bauxite workers throughout the country to enjoy tax-free concessions on overtime hours. This concession was enjoyed by bauxite workers from the late 1980s until about 2006-07 when it was taken away with just the stroke of the Finance Minister’s pen.
The decision to remove this benefit that the Stalwarts of the bauxite industry had so skilfully crafted, was not a burden on the economy or the company when one reads about the tax concessions and holidays granted to other foreign companies.
There is a joke from the bauxite companies which runs, when the tax-free overtime was removed from workers, and the cheque was sent to Guyana Revenue Authority, GRA called the Finance Officer from the bauxite company to inform him that the amount on the cheque was a mistake.
With the new administration in place and the promise of a good life for all Guyanese, all bauxite workers would be very happy if the new Finance Minister could review the tax-free concession on overtime for bauxite workers with a view to ensuring that they can take home a better pay package.
With the Budget estimates expected to be ready by September, making this request for a tax-free concession for bauxite workers would be considered timely.
Yours faithfully,
Jocelyn Morian
