News / National
Zim govt suspends diamond tax
01 May 2015 at 15:50hrs | Views
The government has temporarily suspended the collection of a 15 percent tax on diamond sales due to a drop in production and low global prices for the gems.
A government's letter of intent to the International Monetary Fund dated 17 April 2015 and co-signed by the Minister of Finance and Economic Development Patrick Chinamasa and the Reserve Bank of Zimbabwe Governor Dr John Mangudya, says the temporary suspension in the collection of a special dividend on the diamond sales is aimed at restoring viability for the capital intensive diamond mining industry.
The government says it has also implemented fiscal reforms to ensure accountability on mineral export remittances, with restructuring of parastatals, streamlining of the public sector employment costs and continuous monitoring of expenditure being considered important elements in increasing macro-economic activities.
An economic analyst Bernard Kasekete says apart from diamond mining fiscal reforms, the government should solve resurfacing macro-economic pressures.
"We indeed anticipate more about the entire situation in the economy and it is our role to unlock new and fresh economic growth opportunities for the sustainability of this economy," said Kasekete.
The government is also likely to revise the 2015 macro-economic targets in line with the current environment and output levels for key industrial sectors.
A government's letter of intent to the International Monetary Fund dated 17 April 2015 and co-signed by the Minister of Finance and Economic Development Patrick Chinamasa and the Reserve Bank of Zimbabwe Governor Dr John Mangudya, says the temporary suspension in the collection of a special dividend on the diamond sales is aimed at restoring viability for the capital intensive diamond mining industry.
The government says it has also implemented fiscal reforms to ensure accountability on mineral export remittances, with restructuring of parastatals, streamlining of the public sector employment costs and continuous monitoring of expenditure being considered important elements in increasing macro-economic activities.
An economic analyst Bernard Kasekete says apart from diamond mining fiscal reforms, the government should solve resurfacing macro-economic pressures.
"We indeed anticipate more about the entire situation in the economy and it is our role to unlock new and fresh economic growth opportunities for the sustainability of this economy," said Kasekete.
The government is also likely to revise the 2015 macro-economic targets in line with the current environment and output levels for key industrial sectors.
Source - ZBC
