adminMidlands Correspondent
LOCAL industry empowerment lobby group, Buy Zimbabwe has urged the government and platinum miners through the Platinum Producers Association (PPA) to find common ground after government ordered an immediate 15% export tax on unrefined platinum.The government proposed the tax in 2013 in a move aimed at encouraging platinum mining companies to invest in smelter and refinery to encourage beneficiation.
Despite the deferment of the levy until 2017 following objections by the PPA, the recently gazetted 2015 Finance Bill does not provide for the deferment of the export tax.
Buy Zimbabwe chief economist, Kipson Gundani said if implemented immediately, the export tax would have a negative impact on the economy, which could result in massive retrenchments in the platinum sector.
Said Gundani: “Buy Zimbabwe fully appreciates the government’s interest to beneficiate our natural resources and create more jobs and value for our country.
“However, the implications for the immediate implementation of the export 15 percent tax are detrimental to the affected companies and the economy”.
He added: “This will compromise on any expansion projects and is also likely to cut back on any capital expenditure, increase retrenchments, company closures and add to confusion to our bid to attract foreign direct investment”.
Gundani called on the government to validate its claims that mining houses do not have a concrete roadmap in place for value addition before calling on platinum miners to be proactive and engage government on the progress they have made so far.
“It’s only through dialogue that the parties can come to a solution for the good of the country. Therefore, Buy Zimbabwe will be engaging both government and mining houses to map the way forward,” he added.
Mines and Mining Development Minister, Walter Chidhakwa was quoted this week as saying that with regards to the platinum beneficiation facility the Ministry of Finance and Economic Development will continue to levy raw exports.
Online Reporter