Pindula
Register Login

Zimbabwe Suspends Levy On Raw Platinum Exports

Zimbabwe Suspends Levy On Raw Platinum Exports

The Zimbabwean government has suspended the 5 per cent levy on raw platinum exports.

The Treasury announced the tax in 2020, giving the country’s platinum miners two years to prepare before its planned introduction early this year.

Speaking during a recent interview with ZTN “The Mint Special” programme Finance and Economic Development Minister Mthuli Ncube 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And we decided, as a Government, to remove or suspend that tax, so it’s no longer applicable and this has been welcomed by the platinum industry.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.

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.

More: The Herald


Share Article

Sponsored

More

11 Comments

Tongoonai 1 month ago

It no longer time for propaganda and clowns, people want food on the table.


Faction X 1 month ago

We have not seen how these minerals benefit us directly kubva kuDiamond, Gold neplatinum yacho. i think the President is misAdvised chero vakati platinum yacho yaaakutoenda mahara we dont care, people now need a new System. #voteforchange

Freda 1 month ago

Saka platinum yongo enda hayo.Mtuli anonga atodya mari ipapo.


Asalif 1 month ago

I think it's a deal of looting or externalizing campaign money in a tricky way . you will deposit the tax in so and so account numbers in South Africa who knows what they agreed with the companies who was there to witness the mineral is going for free duty period period period


Superstar 1 month ago

@Asalif wapedza ma sports

Sponsored

More
Chimboti Pizza 1 month ago

Target ya2023 vanoibata here vakomana ava


Tentin 1 month ago

@ Chimboti Pizza, Target inobatika caz we have started to reverse all the bad policies which we intentionally imposed on the populace. In no time we will dollarise and we shall for ever remembered as your heroes. You tend to forget so fast.

I destroy your house today, only to promise you a new one tomorrow. Will tomorrow ever come?

Ano 1 month ago

Tangomirira kunzwa kuti the government has suspended the government


Bright 1 month ago

Kkkkkkkk umm

Kule 1 month ago

Kkk sure we are all waiting


Leave a comment


Recent News


News Categories



Give us Feedback