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Tanzania has collected only $1 million in income tax from Mining company over 4yrs

Discussion in 'Jukwaa la Siasa' started by LeoKweli, Mar 30, 2009.

  1. L

    LeoKweli JF-Expert Member

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    Tanzania has collected only $1 million in income tax from foreign mining companies even though they exported nearly $3 billion worth of gold over a four-year period, a new report has revealed.

    As at the end of last year, AngloGold Ashanti was the sole mining company operating in Tanzania to have paid any corporate income tax, says the report by Action Aid and other advocacy groups.

    The company made a $1 million payment in 2007 on its Geita gold mine operation, which provided Johannesburg-based AngloGold Ashanti with gross profits of $93 million between 2002 and mid 2007.

    According to the report, Canada-based Barick Gold, another large mining company doing business in Tanzania, reported a net income of $97 million between 2004 and the first half of 2007 but paid no corporate income tax to the Tanzanian government.

    Between 2002 and 2006, mining companies exported around $2.9 billion worth of gold. During that time, the government earned around $17.4 million in royalties, charged at 3 per cent of the market value minus transport and transaction costs.

    “If royalties were charged at 5 per cent as it has now been recommended by a presidential commission, the government revenue would have increased to $145 million over the next five years,” says the report titled: “Breaking the Curse: How Transparent Taxation and Fair Taxes can Turn Africa’s Mineral Wealth into Development.”

    “Mining companies operating in Africa are granted too many tax subsidies and concessions,” says the report, which also covers Congo, Ghana, Malawi, Sierra Leone, South Africa and Zambia. “There is high incidence of tax avoidance by mining companies conditioned by such measures as secret mining contracts, corporate mergers and acquisitions, and various ‘creative’ accounting mechanisms.”

    Tanzania negotiates from a position of weakness in its dealings with multinational mining corporations, says Peter Kafumu, the country’s Commissioner for Minerals.

    He says: “The companies are holding a panga by the handle and we are getting the sharp end.”

    Foreign governments also lobby in Tanzania on behalf of the mining companies, the report says.

    It says that in June last year, the staff of the Canadian High Commission in Tanzania tried to influence parliamentarians to reject the recommendations of the Bomani Commission which had been appointed by President Jakaya Kikwete to review the country’s mining contracts and legal framework.

    The companies further try to take advantage of weaknesses in Tanzania’s legal structure, the report adds
    It quotes Mr Kafumu as saying: “We have no capacity to look at their books. The companies can write the books so that third world countries cannot regulate. Even the contracts are difficult. I think the mining companies exploit our weaknesses in law and capacity.”

    The companies have used their negotiating leverage to gain exemptions from local government taxes and fuel levies, the report adds.

    It notes that under negotiated agreements, the mining companies do not pay local government taxes in excess of $200,000 a year. And even that sum, which is much lower than standard tax rates, is not fully collected.

    Royalties account for the largest source of revenues that the Tanzanian government is able to collect from the companies.

    It earned about $17 million in royalties per year during a five-year period. The figure is the product of a 3 per cent charge on the market value of gold exports, minus the cost of transportation and transactions.

    Meanwhile, mining companies in Tanzania are expected to make their formal response to the accusations contained in the report.

    Industrial sources told The EastAfrican that think the companies and the chamber for energy and minerals would be making a formal response to what is contained in the report.

    “It is not good for the industry or the country,” said the sources
     
  2. L

    LeoKweli JF-Expert Member

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    it shame to hear that they have no law to make sure the fairness is happening , what is the role of Bunge then?
     
  3. A

    Alpha JF-Expert Member

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    Just Sad, Sad, Sad...

    People should be in jail for allowing this to happen.
     
  4. Zakumi

    Zakumi JF-Expert Member

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    Si mnasema Nyerere aliwapeni shule. Chimbeni wenyewe.
     
  5. L

    LeoKweli JF-Expert Member

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    harafu wabunge wetu wanajiita lawmakers......
     
  6. Semilong

    Semilong JF-Expert Member

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    8 yrs mwadui walikua wana declare loss

    hii ni rushwa viongozi wetu wanapewa
     
  7. K

    Kwame Nkrumah JF-Expert Member

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    I agree....
     
  8. J

    Jasusi JF-Expert Member

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    Kwani nani aliwakaribisha akina Sinclair kuyachimba hayo madini? Si ni akina Kikwete? Tungeweza kuyachimba wenyewe kwa mikataba ya ushirikiano wa haki na "wawekezaji." Lakini uroho wa pretenders to the throne ndio uliotufikisha hapa.
     
  9. L

    LeoKweli JF-Expert Member

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    The day is coming , hawa wazee wetu wanaosign hii mikataba watakosa pakujificha.

    Kipigo hakitatoka mbali bali kwa watoto zao na wajukuu zao for their recklessness of selling our country for their cheap short time gain
     
  10. Fidel80

    Fidel80 JF-Expert Member

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    Inauma sana tena sana tu....tatizo ni utawala wetu kuanzia kwa juu kwa Rais mpaka wajumbe wa nyumba kumi wote bomu.
     
  11. Mnyisunura

    Mnyisunura Member

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    Mi nadhani kinachotakiwa tuanze from scratch kwa kumobilze resource watanzania wenyewe tuwe na makampuni yetu ya kuchimba. Ukweli ni kuwa haya makampuni yamekuwa tatizo si tu kwa tanzania almost africa nzima. Yameshindwa latin america ambako serikali hujichukulia sheria mkononi kama campuni haitekelezi. Ndo maana sasa wanakimbilia Afrika.

    Tukifanya kama wenzetu waghana ambao sasa wanamaltination company cama ashanti na mengine kama mawili wanayo kwao tutafika. Tusitegemee hizo royality hazitufikishi popote pale!

    Pamoja na kuwa biashara hii ni ngumu lakini hopeful tunaweza kama tumeamua kwani resource tunazo na wataalamu sasa tumeshawapata na wanaweza kusaidia kwa hili. Issue nadhani ni uongozi ambao nawasiwasi inaweza kuwa kikwazo!Kitu kikubwa cha msingi nadhani kuna haja watanzania sasa kuijua hii mining industry atleast background yake hasa in terms of:

    Why mining
    the underlaying mechanisms
    Benefits of mining
    Opportunity as a resourced country
    Rights to land and property
    Engagements with local people
    impact and benefits

    Wakizijua hizi nadhani tutakuwa kwenye postion ya kufanya mdahalo. Otherwise kama watu hawajui ni wakati gani project inaanza na wataendelea kudanganywa tu kuwa bado payback period haijafika kama yanavyofanya haya makampuni.

    Kitu kingine watu waeleweshwe totauti ya Royality na Income tax. Suala hili limekuwa likichanganya sana watu na inavyoonekana wengi hawajui tofauti yake.
     
  12. TIMING

    TIMING JF-Expert Member

    #12
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    Ndugu tafadhali sana;

    Haya matatizo HATA kiwete aliyakuta so if you really want to address the issue comprehensively then go back na ufike kunakostahili... SWEEPING STATEMENTS NDIZO ZIMETUFIKISHA HAPA WATANZANIA

    KUNA DIFFERENT METHODS OF GETTING TO THE ROOT CAUSE OF THE PROBLEM BUT YOUR STATEMENT IS NOT ONE OF THEM
     
  13. Gelange Vidunda

    Gelange Vidunda JF-Expert Member

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    Tatizo halikuanzia bungeni - mikataba hii wakati inaanza ilikuwa haipitishwi bungeni ijadiliwe. Until very recently ndipo bunge limeomba mikataba ipite kwao kwanza ichambuliwe kwanza ndipo ipitishwe.

    Ikumbukwe kuwa wakati madini yanaanza kuchimbwa in the mid to late '90's mikataba yake ilipitishwa kwa mtu ambaye tulidhani is for the people by the people ambaye ndiye mshauri mkuu wa serikali katika maswala ya sheria.

    It is here the steep rise of "vijisenti" really took off - inasemekana mpaka leo hii bado anapata a little something something from those earlier deals. Go figure......
     
  14. J

    Jasusi JF-Expert Member

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    Ndugu yangu,
    Hakuyakuta. Soma Indaba 2007.
     
  15. Mr. Zero

    Mr. Zero JF-Expert Member

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    Tanzania ukitafuta mchawi hutampata.

    Tatizo ni CCM na serikali yake.
    Tatizo ni Elimu duni ya wadanganyika, elimu ya kusoma na kuandika tu. Si ya kuweza kuchambua mambo.
     
  16. M

    Mtanzania JF-Expert Member

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    Wajinga ndio waliwao, watatuachia mashimo matupu tupate kazi ya kufukia.

    Hawa wasomi wetu heri ya babu zetu ambao hata hawakujua kusoma, sasa hawa wanaosaini hii mikataba, sijui wanavaa miwani ya mbao?
     
  17. Mzee Mwanakijiji

    Mzee Mwanakijiji Platinum Member

    #17
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    sasa mnataka walipe zaidi mfukuze "wawekezaji"?
     
  18. L

    LaVerite Member

    #18
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    Tatizo kama ripoti ilivyoonyesha si la Tz tu, ni la dunia nzima. Kuna mtandao wa kimafia wa kidunia ambao ndio una miliki makampuni makubwa ya madini na mafuta ulioamua kujifaidisha kwenye rasilmali za asili. Mtandao huu umejaa mayahudi na baadhi ya wanasiasa na wafanya biashara wa marekani, canada, australia, south africa (white) na uk. Pia wamo familia ya bush. anadhani hamjasikia kuw bush pere (senior) aliuza mgodi wa dhahabu kule marekani kwa barrick gold kwa $10 million lakini mgodi ulikuwa na faida ya $10 billion, of course ilikuwa skendo kule marekani. Mafia hawa wanatumia sana-wameweka watu wao katika senior position za WB na IMF and WTO etc, mmoja wao ni watu kama Paul Wolfowitz, mafia mkubwa.

    Nchi zilizofaidi ni zile zilizoanza zamani kama botswana. Lakini nyingine zote zilizochelewa ilikula kwao.
     
  19. Zak Malang

    Zak Malang JF-Expert Member

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    Kwani hayo makampuni ya madini ni nani alikuwa anayasoma kuja hapa? Si JK? Kwa kipindi cha miaka 10 alipokuwa waziri wa mambo ya nje? Inawezekana alikuwa anawaahidi kwamba atahakikisha hawatakuwa na kodi ya kulipa, kwani hata muda wa Benja ukiisha yeye ndiyo atakuwa top man!

    Haya mambo yanaenda kwa mipango.
     
  20. K

    Kudi Shauri Senior Member

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    According to Reuters Report of Today Malí, which is the fourth largest producer of gold in Africa [after South Africa; Ghana and Tanzania] is expected to get US $ 241 million this financial year as tax revenue from Gold [See article below]. The Tanzania Governmment should be ASHAMED na tunachopata kama taifa toka kwenye dhahabu yetu. Huyo Waziri Ngeleleja ajiuzuklu na asileta masiara ya kujaribu kuikana hii report ya Action Aid. What he should be doing is not to defend the status quo but to institute measures to ensure that the revenue income the TZ Government should be getting from gold exports is 500 times what we are now getting. HII NI AIBU KUBWA SANA KWA TAIFA LETU.



    Mali's gold income seen at $241 mln in 2009: premier
    Mon Mar 30, 2009 3:42pm GMT Print | Single Page[-] Text [+]

    1 of 1Full SizeBy Tiemoko Diallo

    BAMAKO (Reuters) - Mali, one of sub-Saharan Africa's biggest gold producers, will earn the equivalent of more than $240 million from the precious metal this year, its prime minister said on Monday, representing a 20 percent increase on 2008.

    "Its part of the national budget is estimated at 120 billion CFA francs in 2009," Prime Minister Modibo Sidibe said at the opening of a resources conference.

    In 2008, gold contributed 100 billion CFA francs to the budget, accounting for more than 15 percent of gross domestic product (GDP) and 70 percent of export earnings, Mines Minister Mamadou Diarra said.

    Revenue is expected to rise despite a decline in the amount of metal produced. Earlier this month, the mines ministry forecast 2009 output would be 46 tonnes, down 13 percent on last year, as mines approach the end of their productive lives.

    Gold traded at around $928 per ounce on world markets on Monday, up 6 percent since the start of the year.

    One of the few assets to benefit from the global financial crisis, gold -- which many investors see as a safe store of value -- hit an 11-month high of more than $1,000 per ounce in February, and analysts expect it to regain this level in the near future.

    Mali, which is applying to join international anti-corruption scheme the Extractive Industries Transparency Initiative (EITI), said last year it would set up a special account for gold revenues in a effort to improve transparency.

    The EITI's national chief for Mali has said the group would publish its first report on the country early this year.

    Firms active in Malian gold include the world's No.3 gold miner AngloGold Ashanti and Randgold Resources.

    Mali's second biggest export industry, cotton, has been badly hit by falling prices on international markets and the high cost of imported fertilisers.
     
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