Government to charge export tax on platinum

via Government to charge export tax on platinum – NewsDay Zimbabwe May 18, 2015

GOVERNMENT has published a statutory instrument to pave way for charging of an export tax on platinum although Finance minister Patrick Chinamasa had previously deferred the matter to January 2017.

Under the tax regime, government proposes to charge 15% on all platinum exports.

Chamber of Mines of Zimbabwe (CMZ) president Winston Chitando told NewsDay last week that the sector was now seized with the issue.

“The CMZ, through the platinum sector CMZ committee, is working closely with the Ministry of Mines to address the issue. Work is progressing very well and we are working together with the minister (Mines minister Walter Chidhakwa),” he said.

The mining sector is looking forward to government upholding its position on the deferment while government now wants the sector to be taxed starting this year.
The major platinum companies in the country include Zimplats, Unki and Mimosa.

In an unrelated matter, players in the mining sector said they were holding negotiations with Zesa Holdings with a view to have their electricity tariffs reduced from 12 cents per kilowatt hour to 8 cents.

Chitando said the mining companies were facing challenges just like other firms in the country.

“We have made several representations. We have not achieved something. We think it could be better to get the same tariff with the rest of the sector,” Chitando said.

Chitando said mining was paying higher than the rest of the economic sectors. The sector is paying 13 cents against the rest of the consumers that are paying 8 cents.

He said the cost structure was high compared to what other players were paying and the sector was also facing financial difficulties as mineral prices continue to nosedive.

COMMENTS

WORDPRESS: 1
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    grabmore 6 years ago

    Is this to pay civil servant bonuses ? Kia kia economics once again