The Guyana Gold and Diamond Miners Association (GGDMA) yesterday hailed Tuesday’s consultations with Vice-President Bharrat Jagdeo as a major success.
In a statement, the GGDMA said it welcomes, in particular, the government’s move to reduce the Final Tax on income from gold produced, declared, and sold. Currently, the tax is 3.5 percent; however, it will be reduced to 2.5 percent.
Another major development that the Association welcomed is the abolition of the 10 percent Tributors Tax which miners were subjected to for many years.
“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”, the statement said.
It noted that these measures will result in a
pproximately $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”.
The GGDMA said that 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 statement said that 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 statement said that the Vice-President gave the assurance that those would be addressed.
The Association said it is also pleased with the government’s announcement of the $2.4 billion to be spent upgrading roads in mining areas.
