Mining industry a ‘colossal driving force’ behind Guyana’s economy – GGDMA

The Guyana Gold and Diamond Miners Association (GGDMA) said it has noted with concern the recent published comments by Chairman of the Guyana Revenue Authority (GRA) Rawle Lucas that mining is among the industries that earns the “least revenue” for Guyana.
The Association said it “rejects” this statement by Mr. Lucas, as reported in the media. It has since written to the head of the GRA for “further clarification on these utterances”.
The GGDMA alluded to the Budget 2016 speech made by Minister of Finance, Winston Jordon, who stated: “…the valiant efforts of our local miners must be applauded, for it is the gold industry that will continue to drive growth in the economy over the medium term.”
The GGDMA said it agrees with this statement by Minister Jordan, and wishes to reiterate that the direct and indirect contribution of gold and diamond mining to the Guyanese economy is among the largest of any industry.
It noted that unlike the manufacturing and services sectors that directly contribute to the state through a single stream, via GRA, mining contributes through multiple streams.
“In addition to payments of taxes to GRA, miners also contribute directly via payments to GGMC and the Guyana Gold Board; the value of these contributions amounts to in excess of 300% of what is paid to GRA,” the GGDMA stated.
“Indirectly, the mining industry is undisputedly a colossal driving force behind the entire economy of Guyana. The mining industry fuels the economy via job creation and disposable income which in turn has the trickledown supporting effect of creating employment and pumping spending into other sectors,” the Association posited.
It pointed out that if mining was to be removed from that equation, the ensuing reduction of disposable income and, as a consequence, demand for goods and services, would have such a damning impact particularly on sectors such as services, that their direct contribution to the state may dwindle to less than 50% of present value. Additionally, the mining industry is the most significant contributor to foreign currency earnings of the country, without which the cost of doing business in all the other sectors would increase.
“It must be noted also, that the industry serves a very important social role as a poverty alleviator, where many persons are given a legal means to earn an honest dollar in support of their families; not to mention the industry is the largest employer in hinterland communities,” the GGDMA said in a statement.
In relation to tax compliance, the Association agrees that there are non-compliance issues in the industry and has urged all of its membership and all miners to make every effort to become fully tax compliant. There is also a need on the part of GRA to do much more to sensitize the miners about what is their obligations to the state and how these contributions can be made.
“We recognize the need for efficient revenue collection and will support efforts to ensure that the state receives its direct contributions,” the GGDMA stated.