Zimbabwe maintains tax on raw platinum exports

The government says it will maintain a 15 percent tax on raw platinum exports until platinum mining companies' submit credible smelter or refinery building plans.

A document from the Ministry of Mines and Mining Development shows that the decision was made after a series of meetings involving the government, fiscal authorities and platinum mining firms, Mimosa, Zimplats and Unki.

The document states that while the platinum mining companies claim that the 15 percent tax on raw platinum exports is eroding earnings and creating challenges in  mobilising funds for a refinery, the government has however directed the platinum miners to revise their proposals and come up with a clear road map on smelter facilities.

The reviewed proposals will be assessed by treasury and relevant authorities to determine whether the platinum miners will comply with stipulated provisions of establishing a refinery.

Zimbabwe currently send its raw platinum for processing in South Africa and government suspects it is losing billions in potential value added revenues.

Mining is strategic to Zimbabwe's economy.

The sector accounts for 16 percent of the gross domestic product and contributes more than 50 percent of export receipts.