Tax dodging miners won’t benefit from fuel ease

While welcoming the concessions granted by government for the sector, some miners on Thursday expressed concern that many would not benefit as they are not up-to-date in paying some taxes.

Based on the comments from the miners at the Guyana Gold and Dia-mond Miners Association (GGDMA) organised meeting at the entity’s North Road Headquarters, many do not pay tributors tax, which is set at 10% of their employees’ salaries. To benefit from concessions for fuel and pick-ups, miners have to be fully tax-compliant.

The topic of taxes took up a significant portion of the meeting. In his August 10 budget presentation, Finance Minister Winston Jordan announced tax exemptions for small and medium scale miners on several items used in the industry. “I am pleased to announce that eligible gold miners will be exempted from the payment of custom duties on fuel, matting, ATVs, jack hammer drills, flex hoses, expanding metals, pumps, pump housing, impellers, shaft and engines,” he told the House. He said that pursuant to the Customs Duties (Amendment) (No.1) Order 2004, the government will enter into a new agreement with the Guyana Geology and Mines Commission (GGMC) and the GGDMA to give effect to the grant of these tax exemptions.

During their elections campaign the APNU+AFC coalition had promised concessions for the mining industry which is facing falling production amid slumping gold prices.

At Thursday’s meeting, the miners were told that the savings from the waiver of the taxes on fuel are significant and they were urged to take advantage of it. According to vice-president of the association Andron Alphonso, miners could save between $5000 and $7000 per drum of diesel. To benefit from the concessions on fuel and vehicles, miners have to be tax-compliant, he emphasised.

Dabria Marcus, a former executive member, questioned whether the GGDMA is negotiating an amnesty for those miners who are not tax-compliant. He said that there is a need to sit with people and work out how the tax liabilities could be resolved. According to him, the gold mining industry is in “the ICU” and the government cannot be “giving saline and taking blood” at the same time.

Immediate past president of the GGDMA Patrick Harding said that the negotiations with government are continuing and “it’s a new beginning.” His statements were echoed by Alphonso.

President of the association Terrence Adams told the miners that the concessions are on par with that given to large-scale gold miner Guyana Goldfields but to benefit, the miners must pay their taxes. “It’s only 10%, you’re paying right now,” he said. The miners were also reminded that the tax does not come out of their pockets but from the wages paid to their workers. He pointed out that if more miners sign up for the waivers, the GGDMA would be in a better position to negotiate with government.

Executive member Charles Da Silva urged the miners to comply. “You gotta get all your taxes in order,” he said. One of the suggestions made was an amnesty period and a payment plan so that miners could get their taxes in order. The executives were confident that an agreement could be reached with the authorities but stressed that the miners also have to do their part.

 

“We get the fuel prices now like Guyana Goldfields. We gotta change we culture,” Adams said. Alphonso noted that in terms of spares, all miners would benefit as being tax-compliant is not a requirement.