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David Malingha Doya
Source: Sydney Morning Herald June 10, 2011
TANZANIA, which vies with Mali to be Africa's third-biggest gold producer, may introduce a "super profit" tax on minerals similar to the one in Australia, its planning commission says.
"Considering the increasing trend in mineral prices, it is optimal to introduce a super-profit tax on the windfall earnings from the mineral sector," the commission said in a report yesterday. Australia's implementation of a similar levy earned $9 billion a year, it said.
Companies including AngloGold Ashanti, the world's third-largest gold miner, London-listed African Barrick Gold and Tanzanite One own mines in Tanzania. Its output ranked behind South Africa and Ghana and alongside Mali's 44.6 tonnes in 2010, according to research company GFMS.
Gold exports from Tanzania increased to $US1.5 billion ($A1.4 billion) from $US500 million over the past five years, the commission said. Annual government revenue from sales of gold had remained at $US100 million.
The levy was proposed in a five-year planning report that targeted an annual average economic growth rate of 8 per cent from 2011-12 to 2015-16, the commission said.
In the next five years, Tanzania planned to increase tax revenue as a percentage of gross domestic product to 19 per cent from 15 per cent now, the commission said.
The government would "continue with the process of accessing the external sovereign debt market as a source of infrastructure financing".
BLOOMBERG
Source: Sydney Morning Herald June 10, 2011
TANZANIA, which vies with Mali to be Africa's third-biggest gold producer, may introduce a "super profit" tax on minerals similar to the one in Australia, its planning commission says.
"Considering the increasing trend in mineral prices, it is optimal to introduce a super-profit tax on the windfall earnings from the mineral sector," the commission said in a report yesterday. Australia's implementation of a similar levy earned $9 billion a year, it said.
Companies including AngloGold Ashanti, the world's third-largest gold miner, London-listed African Barrick Gold and Tanzanite One own mines in Tanzania. Its output ranked behind South Africa and Ghana and alongside Mali's 44.6 tonnes in 2010, according to research company GFMS.
Gold exports from Tanzania increased to $US1.5 billion ($A1.4 billion) from $US500 million over the past five years, the commission said. Annual government revenue from sales of gold had remained at $US100 million.
The levy was proposed in a five-year planning report that targeted an annual average economic growth rate of 8 per cent from 2011-12 to 2015-16, the commission said.
In the next five years, Tanzania planned to increase tax revenue as a percentage of gross domestic product to 19 per cent from 15 per cent now, the commission said.
The government would "continue with the process of accessing the external sovereign debt market as a source of infrastructure financing".
BLOOMBERG
