Tanzania introduces new mining tax in budget plan for 2017
What you need to know:
- Finance minister Dr Philip Mpango announced the new tax on Thursday as he tabled the 2017/18 national budget in parliament.
- He said the government would not allow direct exportation of minerals from the mines to other countries and would instead establish clearing houses.
- The move comes after a special committee formed by the President reported that mineral ores destined for export were being undervalued
The Tanzanian government has introduced a clearing fee of one per cent of the value of minerals that will be paid in clearing houses before export.
Finance minister Dr Philip Mpango announced the new tax on Thursday as he tabled the 2017/18 national budget in parliament.
He said the government would not allow direct exportation of minerals from the mines to other countries and would instead establish clearing houses.
The clearing houses are based at international airports, mining areas and other areas where the minerals will be verified and issued export permits.
Undervalued
The move comes after a special committee formed by the President reported that mineral ores destined for export were being undervalued
The report showed that an average of 1,400 grammes of gold per tonne of mineral sands in containers, yet the Tanzania Minerals Audit Agency (TMAA) indicated an average of only 200 grammes.
The committee also reported disparities in copper and silver ratios, while no royalty was paid for other compounds like iron, sulphur, rhodium, iridium, and lithium despite there being smelted from the concentrates.
