Nearly $2B in relief for miners as gov’t slashes taxes
The government has slashed several taxes that will allow a sum of $1.9 billion to be re-injected into the mining industry, in a bid to cushion the impact of enduring price hikes in this sector.
The measures were announced by Vice President Dr. Bharrat Jagdeo on Tuesday, during an engagement with local miners at the Arthur Chung Conference Centre.
In the first instance, the Vice President announced that the final tax applied on miners’ income has been reduced from 3.5 per cent to 2.5 per cent. Though the one per cent drop seems like a minuscule amount, Dr. Jagdeo explained that this reduction is equivalent to a total of $1.4 billion returned to the industry.
The government has also opted to forego another $300 million in taxes by eliminating the 10 per cent tributors tax; this is a unique form of income tax that is only applicable to the mining industry in Guyana.
Through this, mining corporations deduct tax from individual miners and then submit a quarterly remittance identifying the miners they have deducted tax for during the period.
Cognisant of the impact this has on small miners, in particular, Jagdeo said the government has decided to remove it completely.
Additionally, the Vice President said that the 14 per cent Value Added Tax (VAT) on lubricating oil has been completed removed, following the complete removal of taxes on gasoline and diesel announced earlier this year.
Altogether, he said these efforts are meant to bring relief to the mining sector, in keeping with manifesto promises made.
And the Vice President highlighted, “This is a combined package of maybe $1.9 billion that the industry will see returned to it.”
The News Room also understands that some $2.4 billion will be spent on upgrading roads in mining areas, as part of efforts to spur productivity.