Finance Minister Winston Jordan today announced a halving of the tributor’s tax of 20% by half.
The gold mining industry had raised numerous concerns about this.
In his budget 2018 address today, the Finance Minister said:
Mr. Speaker, the gold and diamond industry has been making a valuable contribution to Gross Domestic Product, income, export earnings and employment. In recognition of this, the Government has enabled small and medium scale miners to benefit from tax concessions on machinery, equipment and fuel; and waiver and remission of taxes on vehicles, based on gold declarations. For 2016, a total of $47.6 million in taxes was waived on motor vehicles, while, for 2017, such waivers have amounted to $64.4 million for personal motor vehicles and $188 million for fuel, so far. Many operators in the sector have been approved to hold foreign exchange retention accounts; instead of the 10 percent, they have been allowed unlimited retention of foreign exchange to purchase mining equipment.
Following strong representation by the Guyana Gold and Diamond Miners Association (GGDMA), I propose the following additional incentives to the industry: a) A reduction in the Tributor’s Tax from 20 percent to 10 percent, with effect from January 1, 2018. Tributors will continue to file annual tax returns and pay any taxes due or be refunded as appropriate. Both the GRA and the GGMC will intensify their efforts to bring operators in the industry within the tax net. b) Replacement of the current ―2% of the gross proceeds‖ regime with a sliding scale percentage that is based on the price of gold: