Mining industry equipment
TANZANIA
Chamber of Minerals and Energy (TCME) notes with concern the false
allegations that Mining Companies have not been paying taxes in
Tanzania. The Chamber represents member companies in the formal mining
sector, from junior explorers to large-scale producers as well as medium
scale miners.
The
Chamber and its members support a well-regulated local industry and
place great emphasis on compliance with all relevant local and
international laws and rules, including tax codes governing its
members.
Mining
companies in Tanzania are highly regulated and remain to be significant
contributors to the economy of the country in many ways, among them
being through tax payments and employment creation. Between 2009 and
2015, the Tanzania Minerals Audit Agency, an arm of the Ministry of
Energy and Minerals, reported that these companies collectively paid
over USD390 Million (TZS 870 Billion) in Royalties, and USD 305 Million
(TZS680 Billion) in Corporation Taxes, along with other significant
taxes. In 2015 alone, the five major gold mines and one diamond mine
paid a total of USD65.5 Million (TZS 146 Billion) in royalties to
Tanzania’s coffers, and over USD 170 Million (TZS380 Billion) in other
taxes.
These
amounts are expected to have increased in 2016. Concerns have been
raised about Mining Companies incorrectly benefitting by getting VAT
refunds. This is simply not true. As Mining Companies export all that
they produce, they, like any other exporting industry, are categorized
as zero rated under the VAT Laws and are therefore eligible to get
refund of input VAT incurred on their purchases.
It
should however, be noted that Mining companies still pay VAT on
specific categories not allowable to be claimed under the VAT law. For
example, mining companies have continued to pay VAT on catering
services, on purchase of spares parts or repairs and maintenance
services for light vehicles categorized as passenger vehicles under the
VAT Act, 2014 which form large part of the Mining companies fleet.
It
should be noted that the VAT regime under which mining companies are
operating is the same as for any other exporting company in other
sectors. In addition, the formal mining sectors employs 7,355 people
directly and more than 3,000 people indirectly, in support industries.
Given that each of these people in formal jobs supports roughly 11
people, the industry provides a direct livelihood to an estimated
114,000 people. The taxes paid provide funding for among other things,
construction of crucial infrastructure required for the development of
the country.
Toa Maoni Yako:
0 comments so far,add yours
Hii ni Blog ya Watanzania popote walipo duniani kwa ajili ya kuhabarisha, kutoa/kupokea taarifa na kuelimisha mambo yote yaliyo chanya kwa Taifa letu. Tafadhali sana unapotoa maoni usichafue hali ya hewa wala usijeruhi hisia za mtu/watu. Kuwa mstaarabu...