Zimbabwe’s legislators have suggested that the government should give mining companies between seven and 10 years to develop their operations before penalizing them for continuing to sell ore.
Presenting recommendations by the Parliamentary Portfolio Committee on Mines and Energy for the 2018 budget, chair Fani Munengami said the current framework in which the government seemed to be expecting accompany to simultaneously invest in mining development, set up smelter facilities, install base metal refineries as well as installing the precious metal refinery before commencing all extraction appeared not only as punitive but also impossible as investors need time to recover their capital before reinvesting it to the next stage of the value chain.
He said the beneficiation tax framework must be improved by granting investors some tax break or tax holidays between each stage of the beneficiation value chain to allow them time to recover committed capital so that they can reinvest into the next stage of the beneficiation value chain.
“As a committee we propose the following period breaks for the beneficiation tax framework.
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This post was last modified on January 30, 2018 5:35 am
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