By Business Reporter – Tuesday 07 September 2021
HARARE (Mining Index) – MINERS say the current taxation regime within the Artisanal and Small-scale Mining (ASM) sector remains complex, notwithstanding efforts to formalize the sector.
Despite the Ministry of Mines and Mining Development setting an ambitious US$12 billion mining target by 2023, the small-scale and artisanal mining sector has remained excluded from mainstream mining.
The exclusion is despite the fact that the ASM sector massively contributes a significant portion of gold deliveries not only to Fidelity Printers and Refiners (FPR), but also largely contributes to national Gross Domestic Product (GDP).
Zimbabwe Miners Federation (ZMF) Chief Executive Officer (CEO) Wellington Takavarasha said a study into the taxation of the country’s mining sector revealed glaring complexities.
“The Ministry of Mines and Mining Development and Zeparu did a study on mining taxation in Zimbabwe. Zimbabwe has a diverse mineral resource base that has not been significantly exploited,”
“The mining sector has emerged to become the key economic sector of the country in terms of contribution to GDP exports, fiscal revenue, Foreign Direct Investment (FDI) and employment,”
Notwithstanding, the bright prospects in mining, “taxation of the artisanal and small scale mining sector remains complex,” added Takavarasha.
According to Zimbabwe Revenue Authority (ZIMRA) reports, various challenges are faced during the administration of the current tax regime of the mining sector which include transfer pricing and tax evasion.
Meanwhile, ZMF is set to host a virtual meeting with ZIMRA officials this Thursday to deliberate on the challenges in the taxation of the ASM sector. ENDS// www.miningindex.co.zw
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