Miners demand meeting with Government
Members of the Guyana Gold and Diamond Miners Association are calling on the government to meet with them to discuss the new tax measures which the state wishes to implement as part of this year’s national budget.
Last Friday the Association met with its membership and Chartered Accountant Christopher Ram, who tried to explain the measures to the miners. The miners are now expected to adapt to changes being made to a tax system under which they had operated under for over 30 years. During the meeting, members said they are not averse to paying taxes. But they believe that the peculiarities of their business were clearly not taken into consideration. Under the new tax regime, certain goods and services will attract Value Added Tax; the tributors tax would be increased from 10 to 20 percent, and there will be a two percent tax on gross. Added to this, miners will be required to file their income taxes at the end of the year. The tributors tax is taken from the money paid to those hired to work in the mines. The increase in this aspect is of great concern to the GGDMA, since in the past, their members have had difficulty explaining the 10 percent deduction to employees from their earnings.
Members said that on many occasions they have been accosted by staff for the deduction because their staff did not understand that the money must be deducted and given to the Guyana Revenue Authority. One miner indicated that culturally it would be difficult to get the message of the increase over to the workers, since they are under the impression that the money is taken and kept by their employers. Miners believe that they stand to lose their workers, who may leave to work for miners who will illegally choose to not apply the deduction. Another miner said that this cannot be prevented, since the employment arrangement is non-binding. Additionally, there is tremendous concern regarding the two percent off the top charge on gross. Under the new regime this tax will remain but miners will be required to do their taxes to pay income tax.
(Kaieteurnews.com)