Documents show GNUT’s $50 million worth of tax exemption taking effect on April 24 and 27
BY IRWIN ANGIKI
Government this week allowed around $50 million in revenue to be foregone through tax exemptions to Gold Ridge Mining company.
Entry documents show several consignments for Gold Ridge Mining Ltd (GRML) on April 24 and 27 were granted 100 percent tax exemptions.
These are reportedly a portion of the latest tax exemptions handed out by GNUT government.
The item with the largest value is at $107 million. Total of Goods Tax (19.5 percent) and Custom Duty (10 percent) is $31.6 million. 100 percent tax exemption has foregone this revenue.
The smallest item is valued $854. Even this was not spared tax exemption. Its goods tax and custom duty totalled to $252.
Only one item was taxed, its goods tax and custom duty totalling to $4,310.
Finance Minister Rexon Ramofafia declined to comment when sought yesterday, instead referring the paper to his permanent secretary McKinnie Dentana. Mr Dentana has not responded to questions.
Questions sent to Gold Ridge Mining yesterday remained unanswered by press time last night.
Gold Ridge Mining spokesperson Ben Afuga told Island Sun that GRML has a MOU with the government.
Gold Ridge mine is regarded as one of the country’s flagship projects. Redevelopment started in 2019 and gold production and exports began in December 2022.
Government announced on November 30, 2022, that GRML had received $90 million worth of tax exemption.
Tax exemption for GRML is governed by its MOU with government signed on July 13, 2021.
Finance Minister Ramofafia told Island Sun that the MOU is currently under review. He could not give details to the review, or when it is expected to complete.
Under the MOU, 100 percent tax exemption from Goods Tax and Customs Duty on capital infrastructure – imported capital items used for the construction and reconstruction of mine facilities.
Full exemptions also for specialised machinery – mining, milling, smelting, refining, and welding machinery and equipment.
Exemption also covered operational consumables, which include explosives and related accessories, industrial chemicals and reagents necessary for processing, grinding materials: including grinding balls and mill liners, heavy duty tyres: specifically for vehicles rated four-wheel drive and above.
GRML is regarded a central pillar of the Solomon Islands’ economy, currently undergoing a massive expansion projected to significantly increase its contribution to national revenue and employment.
The expansion, launched in August last year and costing $6 billion is expected to generate $7.5 billion in revenue annually once fully operational, $2 billion of which will go government.
Meanwhile, pundits question how GNUT can continue to forego mega-millions in revenue when it is continuously asking donor countries for assistance, the latest of which was for recovery activities following tropical cyclone Maila.
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