Tanzania plans to introduce super-profit mining tax

DAR ES SALAAM (Scrap Monster): Following the footsteps of Australia, legislators in Tanzania is all set to discuss the super-profit mining tax with the mining companies, after it gets approved by the Parliament. The tax if backed by the parliament would be automatically applicable to the new entrants to the industry.

The Planning Commission mentioned that the super-profit tax in the mining industry will pave a way to fund a proposed 42.9 trillion-shilling ($27 billion) economic- development plan in Tanzania.

As per the report, gold exports from the East African country increased to $1.5 billion, or 7 percent of gross domestic product, from $500 million over the past five years, while annual government revenue from sales of the metal remained at $100 million, or 0.5 percent of GDP.

The five-year plan that has been proposed by the commission targets an annual growth rate of 8% for coming five years. However, the Tanzania govt. is yet to decide on the implementation and actual timing of the proposal…..read more on this