Zimbabwe to review mining taxes, royalties

GOVERNMENT says it will review mining royalties and rates of taxation with a view to reduce the cost from mining charges to ensure optimal exploitation of minerals, Deputy Minister of Mines and Mining Development Fred Moyo has said.

"Zimbabwe's (mining) royalty rates are some of the highest in the region, which does not augur well for the country as an investment destination (for mining). We will write rules that will enable these rates to be looked at," Deputy Minister Moyo said.

He made the remarks in his presentation to parliamentarians during a pre-budget seminar held at Elephant Hills Resort in Victoria Falls last week. The deputy minister also pointed out that the mining taxation system was fragmented, cumbersome and required immediate revision to enhance administration.

"A thorough review of the tax and regulatory environment for mining is needed. Tax system must be simple and not a multiplicity as is now," the deputy minister said.

Addressing the same gathering Chamber of Mines President Mr Alex Mhembere said Government should streamline the taxation process to come up with a simpler one.

"We call on the Government to streamline the (mining taxation) process so that we come up one system. We have a fragmented tax system, making it difficult for treasury to account for money that comes from the mining sector," Mr Mhembere said.