TZ Postpones Major Mining Tax Reforms

[Rev. Kishoka]

Wakati mnaendelea kutafuta wachawi na kuitana mafisadi, mengi yanawapita!

MINING FINANCE AND INVESTMENT
Tanzania postpones major mining tax reforms, but takes measures to deal with corporate tax defaulters
Tanzania has postponed the introduction of sweeping changes in the country’s tax regimes, but has instead announced measures to deal with companies that escape paying corporate taxes by annually declaring losses.Posted: Monday , 16 Jun 2008

WINDHOEK -
Mining companies operating in Tanzania had expected that the government would introduce major tax reforms in the lucrative mining sector with the presentation of the country's annual budget. Instead, Minister of Finance Mustafa Mkulo gave the miners temporary relief when he presented the US$6 billion budget last week.
Sweeping changes in the country's tax regimes, including the removal of exemptions from the mining sector, would only be effected on July 1 after passing through parliament - thereby giving the miners more time to contemplate how such reforms would affect them.
Of urgent note on the minister's agenda, however, was the need to tackle mining companies that escaped paying the country's mandatory 30% corporate tax by continuously declaring losses. Mkulo announced that the government was introducing a 0.3% Alternative Minimum Tax (AMT) of the turnover on companies making losses for three consecutive years.
The east African country would amend the Income Tax Act to reverse a growing tendency in which some companies declared losses annually to avoid paying corporate tax, as it took steps to deal with the "generous investment incentives" enjoyed by miners, in a move aimed at ensuring that the country earned at least 10% from the country's total annual mineral production.
"Such corporate entities make commercial profits, however when incorporating tax adjustments they record losses on account of generous investment incentives that are provided in the legislation including accelerated capital deductions and investment allowances," Mkulo said in a budget report.
Mining companies operating in Tanzania have been enjoying a wide range of incentives and tax breaks, attracting up to $2.5 billion of investment in the sector since 1998, making Tanzania the third leading gold producer in Africa after Ghana and South Africa.
A study on gold mining operations published in March by the country's civil society revealed that the government had lost an estimated US$400 million over the past 10 years due to low royalties, unpaid corporation taxes and tax evasion.
The study, "A Golden Opportunity - How Tanzania is failing to benefit from gold mining", revealed that over the past five years, Tanzania exported gold worth more than US$2.5 billion, but only received US$21.7 million a year in royalties and taxes while the expectation was to get US$100 million annually.
Gold miners pay a 3% royalty on profit while diamond and tanzanite miners are levied 5%. Companies, including Barrick Gold Corporation, the world's largest producer of the precious metal, Australian-based Resolute Mining Ltd, AngloGold Ashanti , Tanzanite One Ltd, the only miner of the rare blue gem, operate in Tanzania.
Late last year, President Jakaya Kikwete set up a committee to review the mining industry with the mandate of gathering views from both inside and outside the country over legal provisions that needed to be changed so that the mining sector could become more beneficial to the country. The committee was also charged with the duty to review all mining contracts, analyse the taxation system employed in the mining industry and review the system for supervision of major mining activities by the government.
In its recommendations made public early last month, the committee - which was chaired by retired Judge Mark Bomani - proposed a 40 to 70% increase in royalties paid by the mining companies in the country. It also recommended that royalties levied in gold, copper and silver be increased to 5% from the current 3%. It also called for a 2% increase on royalties on uncut diamonds to 7%.
The committee also recommended that the current ‘net-back value' taxation system be changed to ‘gross value' as is practised in Ghana and Zambia to ensure that the country benefits from the mining industry. Early this year, Zambia - Africa's biggest copper producer - increased the effective tax rate on miners to 47% from 31% by introducing a range of measures, including windfall and variable-profit taxes.
Tanzania's Chamber of Mines has warned that taxation of the mining industry will reduce the country's competitiveness in attracting foreign mining companies.

 

[Gaijin]

hivi viongozi wetu kweli wapo sawa kichwani? kwanini wampendelee muwekezaji kuliko nchi yao?
ni aibu kuwa nchi ya tatu kwa kutoa dhahabu africa na kujikuta hatufaidiki hata kidogo. did this need a tume kweli?

 

[tgeofrey]

Huo Mrahaba Ndio Tunausubiri

 

[Lunyungu]

The power of Sinclair ndiyo hii sasa hakuna wa kubisha wa kupindisha .Jamaa ana ubia na Urais wa JK .

 

[Azimio Jipya]

hivi viongozi wetu kweli wapo sawa kichwani? kwanini wampendelee muwekezaji kuliko nchi yao? ni aibu kuwa nchi ya tatu kwa kutoa dhahabu africa na kujikuta hatufaidiki hata kidogo. did this need a tume kweli?

Ilishaelezwa mapema na ninaunga mkono.

Kuwa: Tumeumbwa watumwa na no matter what we will try do against our noble nature (Utumwa) ...no escape. Sisi ni watumwa wa kuzaliwa. Kama kuna maelezo mengine yaletwe hapa. na yalinganishwe na matukio yanayoendelea eg la Madni ya taifa.

Kuwa: Tumeumbwa watumwa wa kutumikishwa na "wazungu"/wawekezaji feki, bila kujali darasa au cheo utakachofikia. Kama kunamealezo mengine yaletwe hapa. ofcourse against mikataba ya aibu ya kuuza nchi kishenzi ...shenzi tu! huku Bunge likikenua na kumbizana kwa "primitive outlooks"

Kuwa: Kinachotokea Tanzania ni kile kile kilichotokea kwa mababu zetu..kuuza kisiwa kizima kwa kipande kidogo cha kioo cha kujitizamia..bali this time ..kinatokea kwa Hao viongozi wanaoonekana hapo madarakani, na sisi tunacheka cheka tu...Badala ya kioo cha kujitizamia..ni Pipi na vijisenti. Sisi ni watumwa anayfikiri hivi sivyo aseme sisi ni nani..Na akamuulize SIN_CL_AIR kama hatuoni hivi. Att: "SIN"

WAY OUT:

There is no way out ...Kwa maana yake kamili ila there is an alternative.

Na ni hivi.

Kila mtanzania achague daraja lake la utumwa na ajikabidhi maramoja kwa Mwekezaji anaye fikiri atamtumia kama mtumwa kwa usalama na amani. Kila mmoja wetu ajitathimini kuwa anaweza kuwa Mtumwa wa fani gani na ajikabithishe..Kama basi sio kuwa tayari anachapa kazi kiitumwa na kupelekeshwa kitumwa na "SIN"...Types. Nani anabisha? Nani anafikiri yuko huu? stop that...! Kunawengine wamesha kuwa conditioned na kunogewa kwenye utumwa ..kiasi wala haoni kuwa They are done!!

Kuna mtu anafikiri I am talking shit!!!

THEN:

Aje na jibu lingine ya kinachotokea sasa nchini..na aje na jibu zuri kuliko la kwangu. adhibitishe kuwa yeye si mtumwa na haogozwi na viogozi watumwa .. YES..Watumwa Physicaly ,mentaly and emotionaly.

Now to MR Prisedent:

Tuongoze vema kwenda utumwani kwani that is where we belong! and you have no doubt about that. Or do you think we have onother destine?

WHICH ONE SIR?

I will be happy you send one of your Boy ..he Sign here openly and he tell us what you told him ...Yes about our nature and its reinforcement toward slevary.. Mentaly, emotionaly and physicaly.

AND

I would be very Happy to know about each member of the parliament..the type and the brand of slave they have opted!

And how they are promoting "their nature" in the on going session.

GOD BLESS OUR NATION!

 

[Korosho]

Azimio,

Nafikiri sisi sio watumwa tu ila zaidi ya hapo.

Let us look at the figures:

1. In the last five years, gold export was $ 2.5 billion, equivalent to total investment brought in in the last 10 years.
2. With our incentive of tax holiday of 5 years, all mining companies must have started paying their taxes and appreciable levies by now (1998-2008).
3. Mining industry as opposed to other industries is not a recurrent industry. It is industry where resources deminish with time and associated with massive degration on environment. We can learn from history of other mining areas in France, or in the western side of US, of how land was degraded and associated effect on species and natural habitats. With all these in mind, mining always call for a higher return as compared to other industries.

4. Of latest figures, Vodacom Tanzania is believed to invest around $2bn. This just falls short of close total investment in mining in the last 10 yrs.Besides, this is a services company, not a mining company ! In other words, the government can actually raise on its own appreciable amount to re-invest, and this can come only from mining taxies and levies.

5. Our politicians always tend to favor the investors that they(investors) bring in employment opportunities. Kahama Mining (KMCL) in Kakola, directly employs only about 800 people, and about 1300 as casual labourers. This is only to say direct and indirect employment around Kahama does not exceed even 5000 people in a populate of 40mn Tanzanians. Yet, even those employed, their salaries are almost same as in other industries. e.g. a borer is paid 350K same as a secretary in and air-conditioned office in DSM. Whereas the borer put his life in line as well his family, the return is just the same as other type of employment.

6. Tanzania is 3rd largest producer of gold in Africa, yes. But we are the least revenue earner and yet we are failing to take bold measures to get out of our fate.

7. Leadership is about taking bold measures,in line of current needs but much so, in future needs. As a country we have failed so far, but the sad fact is we have known that we failed but we seem not to start taking those bold measures. This is where we are going wrong !! I can't imagine the mining companies having been extended their holiday given the fact that we know how much we are losing, but also when we have also been informed that they ready to negotiate on win-win situation with us (remember comments by Canadian Premier).

Let us wake up. Let us take bold measures in favour of our own selves as well as for future generations!

 

[Rev. Kishoka]

At least kwa sasa wameinusuru STAMICO.....

Posted Date::6/16/2008Serikali yasitisha kubinafsisha Shirika la Madini TanzaniaNa Ramadhan Semtawa

SERIKALI imesitisha mpango wa kulibinafsisha Shirika la Madini la Taifa (Stamico).

Uamuzi huo wa serikali kusitisha mpango huo, unatokana na msimamo wa Kamati ya Bunge ya Nishati na Madini kuitaka serikali kuiondoa Stamico katika orodha ya mashirika yanayopaswa kubinafsishwa.

Akitangaza uamuzi huo hivi karibuni, Waziri wa Nishati na Madini William Ngeleja, alisema serikali iko katika mchakato wa kutekeleza ushauri huo wa wabunge.

Ngeleja alifafanua kwamba, kwa kuwa uamuzi wa kuibinafsisha Stamico ulitolewa na Baraza la Mawaziri, kinachofanyika sasa ni kuandaa taratibu za kulirudisha suala hilo katika baraza hilo ili litazamwe upya.

"Kuhusu ombi la kamati kutaka Stamico iondolewe katika orodha ya mashirika yanayobinafsishwa, hili nasema tumelisikia na tunalifanyia kazi," alisema Ngeleja na kuongeza:,

''Taratibu za kuiondoa Stamico katika orodha ya mashirika yanayopapswa kubinafsishwa zinaendelea na kwa kuwa uamuzi huu ulifikiwa na Baraza la Mawaziri, tunafikiria kulirejesha suala hili huko.''

Waziri Ngeleja alithibitisha kwamba, serikali haitabinafsisha Stamico kwa sasa kama ilivyoombwa na wabunge.

Kamati hiyo ya Bunge, mapema mwaka huu, iliitaka serikali kuachana na mpango wa kulibinafsisha shirika hilo na kutaka iliondoe katika orodha ya mashirika ya umma yanayopaswa kubinafsishwa. Tangu kuwepo mageuzi ya uchumi katika miaka ya 1990, mashirika mengi muhimu ya umma kama Kampuni ya Simu Tanzania (TTCL), Shirika la Umeme (Tanesco) na mengine nyeti, yamekuwa yakikodishiwa menejimenti mbovu za kigeni au kubinafsishwa kwa wawekezaji wahuni.

 

[BAK]

Hawa viongozi ni mashareholders katika makampuni hayo ya uchimbaji dhahabu na wako radhi kutetea maslahi ya makampuni hayo badala ya Tanzania na Watanzania. Makampuni ambayo yanapata faida kubwa sana kutokana na bei ya dhahabu kuwa in record levels wanapewa muda sijui mpaka lini, wa kutafakari ni jinsi gani ongezeko la kodi litakavyoathiri mapato yao!!!!! Wakati walala hoi wa Kitanzania na vipato vyao vidogo wanaendelea kuminywa kodi kubwa na kushindwa kukidhi gharama muhimu za maisha. Hawaoni hata aibu kuendeleza ufisadi wa mchana mchana. Kweli aliyosema Sinclai kwamba rafiki yake kamhakikishia kwamba asiwe na wasiwasi na ripoti ya tume ya madini maana yeye JK ndiyo mwenye uamuzi wa mwisho. Na kama fisadi amelinda maslahi ya wazungu badala ya Watanzania!!!!

 

[Mpaka Kieleweke]

WE are dead, na kuna haja ya kuangalia ubongo wa viongozi wetu.

Ndesamburo ,kasema kuwa kama tukiendelea kuwa hivi kuna wakati watalii watakuja kuangalia hawa watanzania ni watu wa aina gani ?

 

[Kuhani]

WE are dead, na kuna haja ya kuangalia ubongo wa viongozi wetu.

Ndesamburo ,kasema kuwa kama tukiendelea kuwa hivi kuna wakati watalii watakuja kuangalia hawa watanzania ni watu wa aina gani ?

... na watoto wetu watachimbua makaburi kutafiti DNA zetu kuangalia tulikuwa tunafikiri nini.

Sasa hivi tunasubiri "Ripoti ya Sinclair" tujue kama Rais atafanya yale yaliyopendekezwa. Mkullo anatulejea stori nyingine sasa hivi. Yale ya tume ya Bomani yameishia wapi?

 

[mwanatanu]

Kweli aliyosema Sinclair kwamba rafiki yake kamhakikishia kwamba asiwe na wasiwasi na ripoti ya tume ya madini maana yeye JK ndiyo mwenye uamuzi wa mwisho. Na kama fisadi amelinda maslahi ya wazungu badala ya Watanzania!!!!

Watu wameshaamua kula na baada ya kumaliza waende kula mali ya wanachi kivulini kwa raha mstarehe....globalization ndio faida yake...Bush hakuja TZ bure,alikuja na sababu ....Barrick.....Ndio maana mimi nam support Putin alifunga wahujumu na mapesa yao mpaka leo.

 

[Azimio Jipya]

It is realy sad story!

 

[Dua]

Unapokuwa na rais kama JK unategemea nini? ........................share zake kwa Sinclair zinaongea. Ni jukumu la wabunge sasa kuamua kusuka au kunyoa hatuwezi kungoja 2010.

 

[Baba Sangara]

....Mining companies operating in Tanzania have been enjoying a wide range of incentives and tax breaks, attracting up to $2.5 billion of investment in the sector since 1998, making Tanzania the third leading gold producer in Africa after Ghana and South Africa....
This should also be taken with a pinch of salt.. The mining companies regularly overvalue thier imports of construction equipment.. I experienced it first hand; when importing trailers into the country the TRA decided mine were valued well over 10 times the price I had actually boought them for. On asking them how this could be, they produced documents from mining companies with exactly the same trailers I had imported ... So Kama ni trela za lori tu lazima tujiulize thamani za mashine nyingine nyingine ambazo bei zake hazipatikani kwenye internet .... Labda waweke wazi hizo ivestments zao za 2.5 Mio USD tuzikague?