Guyana to take IMF’s recommendation on petroleum taxation on board

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Guyana's Finance Minister, Winston Jordan

Guyana will be taking on board some of the recommendations made by the International Monetary Fund (IMF) recently with regards the modernizing of its petroleum fiscal regime, taxation structure and Production Sharing Agreements (PSAs).

The International Financial Institution, in 2017, was invited by the South American Country’s government to conduct a review, and subsequently prepared, “A Reform Agenda for Petroleum Taxation and Revenue Management” report, submitted in November.

That report outlined a number of recommendations regarding Guyana’s PSAs and fiscal regime. The country’s Finance Minister, Winston Jordan has said some of the recommendations will be taken on board that would see changes being made to the structure of future PSAs.

Speaking to reporters on Friday at his Georgetown office, Mr. Jordan said, “Since 2016 when the multi-laterals really come on board, they have done a range of studies.”

He further stated that in moving forward with changes to the PSA structure, the IMF did make it “very, very clear there is nothing you can do with those you have already signed.”

According to the Finance Minister the IMF’s report would form a part of the “blueprint going forward for any other arrangement that you may enter into with oil companies but not with those who we have contracts with already.”

Mr. Jordan used the occasion to confirm too that the IMF continues to assist Guyana in its preparation of first oil come March 2020.