Farai Mabeza, Senior Staff Writer 
THE mining industry says the decision to move collection of fees and commissions from the Minerals Marketing Corporation of Zimbabwe (MMCZ) to the Zimbabwe Revenue Authority (Zimra) will iron out operational creases that were affecting miners.
Last week, the Reserve Bank of Zimbabwe (RBZ) announced that all mining taxes applicable at the point of receipt of export proceeds would now be paid directly to Zimra instead of being deducted by MMCZ “to improve the ease of doing business arising from complications around payment of fees and commissions…”
The new policy takes effect immediately.
Reserve Bank of Zimbabwe governor, John Mangudya
“All applicable taxes shall now be paid to the Zimbabwe Revenue Authority in the normal manner,” said RBZ governor John Mangudya. The current 60 percent retention threshold on all export proceeds would remain applicable.
The announcement came as Zimbabwe’s mineral exports have been suffering from payment delays and other complications, largely attributed to the impact of international sanctions slapped on the MMCZ.
Chamber of Mines of Zimbabwe (CoMZ) chief executive Isaac Kwesu told The Financial Gazette this week that the development would improve miners’ operations.
“It’s a positive outcome and it supports the ease of doing business conditions. The mining industry by and large exports and requires a quick turnaround of their earnings. So, this will help them operate smoothly.
“This development not only minimises that lead time, that time between when they sell and when they get their money, but also gives them (producers) control in terms of distributing their earnings and making payments.
“It also shows that the government has confidence that mining houses are able to comply with tax requirements,” Kwesu told The Financial Gazette.
MMCZ chief executive Tongai Muzenda said his organisation had worked with the RBZ, Zimra and other players in coming up with the new measure to address the concerns raised by industry.
“Some of the things that irritate producers are issues to do with the quick movement of funds. “So, everyone, Zimra, RBZ and MMCZ have been working together trying to see how we can address these challenges,” Muzenda said. Muzenda said MMCZ would continue to be responsible for regulating the marketing of the country’s mineral resources.
“Nothing really changes. The MMCZ will still be responsible for mineral resource accounting to assist the producers to be accountable to the nation,” he said.
MMCZ says that had it not been for the sanctions, it would be selling 50 percent more minerals than it is currently able to put on the market. The corporation says it is constrained by the embargoes when it wants to use the US$, which is a major trading currency.
“There is a United States-based organisation called OFAC (Office of Foreign Assets Control) of the United States Department of Treasury.
“It intercepts the mineral sales proceeds, so we have to work within the means and confines of the Zimbabwean laws to sell our minerals,” Muzenda told the media recently.
MMCZ is mandated through the Minerals Marketing Corporation of Zimbabwe Act to negotiate, enter and administer the implementation of sales agreements on behalf of mineral exporters which has seen it collecting export royalties and commissions from the exports.
