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Saturday, 22 May 2010

The world of mining taxation

As high mineral prices have risen a number of governments have been looking at ensuring how their countries can get a larger share. The list below provides some quick examples, to help put the Zambian debate on windfall taxation in perspective. We have mentioned many of these as part of our global "mining watch" series :

Tanzania : Tanzania’s parliament has passed a new mining law that increases the rate of royalty paid on minerals like gold and requires the government to own a stake in future mining projects.

Ghana  -Africa’s second biggest gold producer, plans to double the amount mining companies pay in royalties as part of a broader effort to boost government revenues from the sector, the country’s finance minister said in November.

Australia - In early May the Australian government slapped a 40 percent tax on mining profits to fund a boost to workers’ incomes in an election year.

Canada - Quebec’s authorities recently announced plans to hike mining tax rate to 16 percent from 12 percent, by January 1 2012. In the words of Quebec authorities : "the existing 12 percent tax rate is insufficient to allow fair compensation for the use of a non-renewable resource that belongs to the public domain.."

Chile :  Top copper producer Chile in April raised royalties on the mining sector to help reconstruct the country after a big earthquake.

2 comments:

  1. 2013 Zambian mining tax revenue estimate:

    http://www.times.co.zm/news/viewnews.cgi?category=12&id=1275026143

    ReplyDelete
  2. I would not call these "estimates". The government is not in position to project any estimates because they have no capacity to ascertain the costs.

    This is more of an election mantra given the position in 2011.

    We must be very cautious in the absence of tangible policy documents to confirm the assertions.

    ReplyDelete

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