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Tanzania not rushing new mining taxes - FinMin told IMF/World Bank Meetings in DC

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by nngu007, Sep 25, 2011.

  1. nngu007

    nngu007 JF-Expert Member

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    Sat Sep 24, 2011 8:20pm GMT

    WASHINGTON, Sept 24 (Reuters) - Tanzania is not rushing to increase taxes on mining companies, but is talking to the firms and expects to have an arrangement in place by the end of the financial year in mid-2012, the finance minister said. Tanzania is Africa's fourth-largest gold producer and its mining sector has attracted major investment over the past decade, but rising prices for gold and other commodities have put the government under pressure to get a bigger take.

    "It's not a question of saying we'll be doing that from tomorrow. It's an issue being discussed with the companies," Finance Minister Mustafa Mkulo told Reuters on the sidelines of IMF/World Bank meetings in Washington.

    "We expect by 30 June next year we might come up with something," he said. Tanzania's financial year runs from the middle of one year to the next.


    Tanzania has been in talks with mining companies to allow the government to raise royalty payments on gold exports to 4 percent from 3 percent as well as on reviewing other taxes in line with legislation passed last year.


    Tanzania's annual gold exports have tripled to $1.5 billion in the last five years due to the increase in the price of gold but government revenues have remained at around $100 million a year. The government has said it would not impose new royalty payments on existing mining companies, but seek voluntary compliance.


    Mining has been a big driver of Tanzanian growth and Mkulo estimated growth would reach 7 percent for the 2011-2012 financial year.


    He said that the drop in gold prices in recent days would not have an impact on the discussions on increasing the taxes that mining firms pay.


    African Barrick Gold (ABGL.L: Quote) has four gold mines in Tanzania while Australia's third largest gold miner, Resolute Mining (RSG.AX:Quote) and South Africa's Anglogold Ashanti (ANGJ.J: Quote) also have gold mining operations there.


     
  2. M

    Mkandara Verified User

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    Tuliyajua haya siku nyingi....We might come up with something, means nothing is at the table right now.
     
  3. nngu007

    nngu007 JF-Expert Member

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    Is it a shame... BUNGENI wanasema kuwa serikali itaongeza tax kwa makampuni yanayochimba dhahabu nchini

    Sasa wamealikwa kwenye Mkutano wa IMF/World Bank wanawa akikishia kuwa tax kwa makampuni ya dhahabu hazitaongezwa

    Yaani serikali ya CCM inadanganya Wananchi Wake?
     
  4. Steve Dii

    Steve Dii JF-Expert Member

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    Nakala hii haioneshi kingine kile bali haya mawili:

    -- Ni jinsi gani serikali yetu ilivyo LEGELEGE.
    -- Pia inaonesha ni namna gani waziri wetu wa fedha asivyo na upeo wala matarajio ya kile ambacho serikali yake inafanya!! Ni mwendo wa kondoo tu, mzobamzoba! :(
     
  5. Power to the People

    Power to the People JF-Expert Member

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    Nina hakika royalities ikiongezwa hata 30% haya makampuni yanaweza kulipa bila hata shida na faida zikabaki juu kabisa. iweje ongezeko la asilimia moja lifanyiwe mazungumzo kwa mwaka mzima? naenda liybia kuwatafuta majeshi ya waasi waje wawafurukute hawa viongozi wetu machizi leo unasema hiki kesho kinakuwa kingine.
     
  6. nngu007

    nngu007 JF-Expert Member

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    All Tanzanian companies (not just mining companies) are entitled to a refund on their input VAT.


    However, given the profits GOLD companies make, the Tanzania's precarious financial situation, it is highly quastionable whether the government should be offering any tax concessions at all.


    Alleged tax evasion


    It is alleged that four gold mining companies, including Barrick and AGA, overstated their losses by US$502m between 1999-2003, indicating that the government lost revenues of US$132.5m. The audit also noted that thousands of documents were missing that would have shown whether royalties valued at US$25m were, in fact, paid.
     
  7. nngu007

    nngu007 JF-Expert Member

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    I believe this is more Political now

    Easier said than done! Governments are made up of people and people don't always agree with one another. Take Tanzania's President, Jakaya Kikwete, and its Commissioner for Minerals, Dr Peter Kafumu, as an example.


    One minute the President is telling a Cape Town based mining conference that a hike in mining royalties is on the cards. The next the Commissioner is reassuring industry that the chances of this happening are remote. Who is an investor to believe?

    Well Dr. Kafumu is right; Minister of Finance did tell World Bank in DC this week that there will be no TAX increase for the Investors

    It seems that's the reason Kikwete is giving Dr. Kafumu the position in IGUNGA???
     
  8. d

    dotto JF-Expert Member

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    Mimi shida yangu sio Royalty kuongezwa, Wazungu wamekuwa wakituzuga na mambo ya Royalty. Tatizo ni kile kinachosafirishwa nje ya nchi hakijulikani kwa takwimu sahihi hasa hasa toka migodi mikubwa. Tuwe na Refinary base yetu hapa Tanzania kwa Gharama zozote. Badala ya kuletewa miviandarua ya Mbu wajenge Refinary ya nguvu na chochote kitakachotoka Tanzania kikiitwa Gold ipitie hapo. Tutaondokana na suala la uzugaji unaoitwa Royalty. Royalty hata ingebakia 4% bado ingelipa kama kuna usahihi wa kile kinachozalishwa na kusafirishwa!
     
  9. Bantugbro

    Bantugbro JF-Expert Member

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    Wazo zuri tatitizo liko kwenye utekelezaji...

    Nani ajenge hiyo refinery; mwekezaji au wewe mwananchi (serikali?).
     
  10. M

    Madcheda JF-Expert Member

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    Pumbavu kabisa,yan madini yetu tunaogopa kuwalipisha kodi mnakuja kutubana wafanyakazi wa kawaida
     
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