Dismiss Notice
You are browsing this site as a guest. It takes 2 minutes to CREATE AN ACCOUNT and less than 1 minute to LOGIN

TEITI: Govt fails to declare 47bn/- it received in royalties

Discussion in 'Jukwaa la Siasa' started by M'Jr, Aug 29, 2011.

  1. M'Jr

    M'Jr JF-Expert Member

    #1
    Aug 29, 2011
    Joined: Jul 8, 2011
    Messages: 3,511
    Likes Received: 121
    Trophy Points: 160
    The government has failed to declare 46.5bn/- it received in royalties and taxes from mining and gas companies during the financial year 2008/09.

    According to investigations by Extractive Industries Transparency Initiative (TEITI), the government received a total of 128.4bn/- in royalties (sold minerals and fuel levy) during the period under review. However, the Initiative’s investigation from the companies side shows that the same mining and gas firms paid a total of 174.9bn/-, rendering a discrepancy of 46.5bn/-.

    Presenting TEITI’s first reconciliation report on payments and revenue for extractive industries to the government, TEITI secretariat head, Benedict Mushingwe said they observed that taxes collected by the government from the firms, excluding PAYE and social security fund, represented 62.3bn/-. He said that according to the International Monetary Fund, Tanzania’s total tax revenue in the reporting period stood at 4,044bn/-.

    On the other hand, the extractive companies contribution to the government was 1.5 per cent of the total tax revenue from July 1, 2008 to June 30, 2009, it noted. Addressing the PAYE issue, he said while it is a method of collecting personal income tax, which is a tax on resident person’s annual income obtained world-wide and on the Tanzania source income for non-residents. The income includes any gains or profits from business, employment or services rendered dividend income or interest earned from any bank operating in the United Republic of Tanzania

    In the investigation, he said, the report covered payments received from twelve operations including Geita Gold Mine, North Mara Gold Mine, Buzwagi Gold Mine, Bulyanhulu Gold Mine, Tulawaka Gold Mine, Tanzanite One Mining Limited, Williamson Diamonds Limited, El-Hillal Minerals Limited, Pan African Compan Limited, Artumas Tanzania Limited and Tanzania Petroleum Development Corporation (TPDC).
    “The report reconciled the payments from these companies with revenue collected by the Tanzania Revenue Authority, the Ministry of Energy and Minerals, and the National Security Fund,” he said.

    Apart from that the data obtained from the firms and the government agencies were drawn from accounts audited in accordance with international standards, Mushingwe said. According to him, the main objective of the investigation was to ensure that the firms’ engagements when it comes to payment are transparency and credible. “The engagement entailed an analysis and reconciliation of material payments and receipts made by specified reporting entities for the period from July, 1 2008 to June 30, 2009 in the mineral sector and the gas sector,” he said, adding that the reconciliation has been carried out on the cash basis of accounting.

    Also during our dealings with reporting entities, there was limited awareness of the EITI requirements among the staff we dealt with.

    This led to inaccurate completion of data collection templates initially and delays in resolving issues arising from, for example, templates sent to TRA.
    “Presently TEITI is part of global standard for transparency and accountability in the oil, gas and mining sectors,” he said.

    Presently thirty three countries around the world are implementing the standard and the Extractive Industries Transparency Initiatives (EITI) helps civil society groups, media and the public to systematically review and assess what is being paid by the mining firms to and received by government agencies in taxes and royalties.

    Source: in2eastafrica.net
     
  2. Zing

    Zing JF-Expert Member

    #2
    Aug 29, 2011
    Joined: Jun 24, 2009
    Messages: 1,780
    Likes Received: 15
    Trophy Points: 0
    wabunge wenyewe hawana transparceny kwe psa za CDF. sasa wao wasipokuwa mfano sijui hata hiyo serikali wanatakiwa kusimamia ittoa huo mfan wapi.

    Sijawai kuona kwenye gazeti au ofisi ya wilaya financia report ya matumizi ya CDF ya jimbo lololote.
     
Loading...