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*Biti Says Finance Minister Ncube's Proposed Tax Holidays For Platinum Miners Are Unjust* *Follow Pindula on WhatsApp for daily new updates* https://whatsapp.com/channel/0029Va84dngJP21B2nWeyM3v?sq Harare East Member of Parliament, Tendai Biti, has said tax holidays proposed by Finance Minister Mthuli Ncube for Platinum miners are unjust. In the 2022 Mid-term Budget and Economic Review and Supplementary Budget, Ncube said: ---------- Latest itel S24 available on Pindula: 128GB storage $119 USD WhatsApp +263783450793 ---------- > In consideration of the work in progress to establish a platinum beneficiation plant, Government suspended export tax on exports of matte. This was in sync with an announcement he made during a May interview with ZTN “The Mint Special” programme that the government had suspended the 5 per cent levy on raw platinum exports. He said miners said the levy was choking their operations. He said: > They wrote to me and gave me good reasons as to why this tax is not a good tax and that it is hurting investments. Certainly, in their arguments, I was convinced and the Government was convinced and I also briefed His Excellence (the President). > And we decided, as a Government, to remove or suspend that tax, so it’s no longer applicable and this has been welcomed by the platinum industry. > Because it’s about a change in tax, it is always better to effect it in a Finance Bill Amendment, but that tax is not being collected by anyone. He added that he had directed the Zimbabwe Revenue Authority (ZIMRA) to stop collecting the tax. Biti, a former Minister of Finance during the Government of National Unity (GNU) said the move would cost Zimbabwe. He said: > The Minister of Finance proposes to suspend the payment of VAT by Platinum mines on unprocessed raw exports. He further proposes that Platinum Houses should pay their taxes 50% in Zim$ yet all their income is US$ export earnings. Unjust tax breaks have cost Africa for decades. *Why was it introduced in the 1st place?* > i). To persuade miners to develop domestic value addition facilities, to optimise returns from its vast platinum deposits. > ii). Platinum miners are exporting the mineral to South Africa for refinement, largely in a raw or semi-processed state, depriving the country of significant potential revenues. > iii). Platinum together with gold, generate more than half the foreign exchange inflows from the mining sector. Zimbabwe has the third biggest known platinum deposits. *Producing mines:* > a). Zimplats (a unit of South Africa’s Implats), > b). Mimosa Mining Company (co-owned by Implats and Sibanye Stillwater of South Africa), and > c). Unki Mine (a unit of Anglo-American). *Other platinum projects at various stages of development:* > i). Great Dyke Investments (a joint venture between Zimbabwean and Russian investors) > ii). South African firm Tharisa Capital’s fledgling Karo Resources project and > iii). Bravura, fronted by Nigerian investor Benedict Peters. Zimbabwe intends to grow mineral loads from mining to US$12 billion by 2023 from US$2.7 billion in 2017. *Pindula News* itel A50 now available on Pindula at $84 64GB storage, 2GB RAM. _ideal for light usage_ _If you found this article useful_ *Please support Pindula by forwarding to friends and groups*
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